Professional Documents
Culture Documents
We have continued to achieve awards which we dedicate to our valued stakeholders You!
We received these prestigious accolades in 2012, we present them to you as well. Thank
you for staying with our journey towards excellence.
Presented Annual Report Awards 2011 (Winner in Private Sector Banks category and
technology and Bangladesh Business Awards-2011 from DHL-The Daily Star in the
Bangladesh
Business
Awards-2011
DHL-The Daily Star
Contents
Letter of Transmittal
03
04
05
Vision
08
Mission
09
Corporate Philosophy
10
Strategic Priority
11
12
Green Banking
13
15
Milestones
17
18
Governance
Composition of Board and Committees
27
28
32
Shareholders' Information
Financial Highlights- Group & PBL
136
137
138
140
Segment Analysis
142
143
143
144
- Capital Adequacy
144
145
146
- Payment of Dividends
147
148
149
149
150
38
41
Corporate Governance
42
Sustainability Report
64
72
Corporate Management
75
Corporate Organogram
78
79
80
Risk Management
107
118
Other Information
Media Highlights 2012
151
Customer Care
153
169
164
Financial Reports
Directors' Report
193
205
206
208
310
322
342
360
384
407
Branch Network
410
Glossary
415
Letter of Transmittal
All Shareholders,
Bangladesh Securities and Exchange Commission,
Registrar of Joint Stock Companies & Firms,
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited
Dear Sir(s),
Annual Report of Prime Bank Limited for the year ended December 31, 2012
Enclosed please find a copy of the Annual Report of Prime Bank Limited along
with the Audited Financial Statements as at the position of December 31, 2012. The
Report includes Income Statements, Cash Flow Statements along with notes
thereon of Prime Bank Limited, its Subsidiaries namely Prime Exchange Co. Pte.
Limited, Singapore, PBL Exchange (UK) Limited, PBL Finance (Hong Kong)
Limited, Prime Bank Investment Limited and Prime Bank Securities Limited.
This is for your kind information and record please.
Best regards.
Yours sincerely,
Items
Page No.
8, 9
11
12
15
Directors profiles and their representation on Board of other companies & Organization Chart
Management Report and analysis including Directors Report / Chairmans Review/ CEOs Review
A general review of the performance of the company
Description of performance of various activities/products/segments of the Bank and Group during the period under review 80, 105, 136-148, 193-202
A brief summary of the Business and other Risks facing the organization and steps taken to effectively manage such risks
A general review of the future prospects/outlook.
107-134
35, 82
64-74, 169-191
72-74
Information on contribution of the Bank to its responsibilities towards the staff (including health & safety)
65-68
64-74, 145-146
222-238
Impairment of Assets
Changes in accounting policies/ Changes in accounting estimates
Segment Information
Comprehensive segment related information bifurcating segment revenue, segment results and segment capital employed
Availability of information regarding different segments and units of the entity as well as non-segmental entities/units
Segment analysis of
- Segment Revenue, Segment Results, Turnover, Operating profit, Carrying amount of Net Segment assets
Financial Statements
Disclosures of all contingencies and commitments
Comprehensive related party disclosures
Disclosures of Remuneration & Facilities provided to Directors & CEO
206-406
18-27
8-9, 11, 194-195
Items
Audit Committee (Composition, role, meetings, attendance, etc.), Internal Control & Risk Management
Ethics and Compliance
Remuneration and other Committees of Board
Human Capital
Page No.
27, 42-62
12, 27-62
44, 52-53, 271
65-68
64-74, 169-191
80-105
149
Stakeholders Information
Distribution of shareholders (Number of shares as well as category wise, e.g Sponsors, FII etc)
Shares held by Directors/Executives and relatives of Directors/Executives
Redressal of investors complaints
143, 262
52-53, 143, 262
149
140-148
Shareholders Funds
Return on Shareholders Fund
Horizontal/Vertical Analysis including following.
Operating Performance (Income Statement)
- Total Revenue, Operating profit, Profit Before Tax, Profit after Tax, EPS
Statement of Financial Position (Balance Sheet)
- Shareholders Fund, Property, Plant & Equipment, Net Current Assets, Long Term Liabilities/ Current Liabilities
Profitability/Dividends/ Performance and Liquidity Ratios
Gross Profit Ratio
Earning before Interest, Depreciation and Tax
Price earning ratio
Current Ratios
136-148
144-148
64-74, 169-191
68
Items
Page No.
Specific Disclosures
Disclosure of Ratings given by various rating agencies for Instruments issued by/of the Bank
15, 51
Details of Advances portfolio Classification wise as per the direction issued by the central bank
Disclosure for Non Performing assets
- Movements in NPA
- Sector-wise breakup of NPA
245-251, 258-259
307
242-245, 283
Business Ratio/Information
- Statutory Liquidity Reserve (Ratio)
- Net interest income as a percentage of working funds / Operating cost efficiency ratio
- Return on Average Asset
- Cost / Income ratio
- Net Asset Value Per Share
- Profit per employee
99-101, 136-148
199-202
245-251
258-259, 273
120-134
242-245, 283
252, 284
242-245
410-415
Our Vision
To be the best Private
Commercial Bank in Bangladesh
in terms of eficiency, capital
adequacy, asset quality, sound
management and profitability
having strong liquidity.
Our Mission
To build Prime Bank Limited into
an efficient, market driven,
customer focused institution with
good corporate governance
structure.
Continuous improvement of our
business policies, procedure and
efficiency through integration of
technology at all levels.
Corporate Philosophy
For our Customers
To provide the most courteous and efficient service in every aspect of its business
To be innovative in the development of new banking products and services
For our Employees
By promoting their well-being through attractive remuneration and fringe benefits
By promoting good staff morale through proper staff training and development,
and provision of opportunities for career development
For our Shareholders
By forging ahead and consolidating its position as a stable and progressive
nancial institution
By generating profits and fair return on their investment
For our Community
By assuming our role as a socially responsible corporate citizen in a tangible manner
By adhering closely to national policies and objectives thereby contributing towards the
progress of the nation
........upholding ethical values and best practices
Strategic Priority
Improvement of deposit mix by maintaining efficient deposit mix, increase share of low cost
and no cost deposit in total deposit, increase non-funded business.
Maintain adequate level of liquidity through minimizing asset-liability mismatch and recovery
of past due loans.
Extend banking services to un-banked and under banked people for inclusive growth.
Innovative approach in dealing with complex and large transactions / fund requirements with
strategic alliance.
Development in Human Resources Management System to motivate and retain the Human
Resources and transform Human Resources to Human Capital through proper training in
every aspects of working area.
Eth
ics
rity
eg
nt
Tru st
Green Banking
Corporate Profile
WHO WE ARE
CORPORATE RANKING
CREDIT RATING
PBL continues to earn recognition and trust for its strong and
sustained financial performance and product management. In
2012, PBL received 4 most valued awards for its published
accounts and reports and corporate governance viz.
CRISL reaffirmed long term rating of PBL to AA+ and short term
rating to ST-1 based on financials up to December 31, 2011.
RATING BY CRISL
Long Term
Surveillance Rating 2011
Surveillance Rating 2010
Outlook
Date of Declaration of rating
AA+
AA+
Short Term
ST-1
ST-1
Stable
May 30, 2012
NETWORK
PBL has a large and well distributed network of branches in
Bangladesh. It has 113 branches and 17 SME branches covering
strategic financial centers. It has 3 Off-shore Banking Units at
different EPZs in Bangladesh. The bank has fully owned exchange
houses at Singapore and UK facilitating inward remittance to
Bangladesh. It has a fully owned finance company in Hong Kong.
It has active presence in capital market through Prime Bank
Investment Limited and Prime Bank Securities Limited.
EFFICIENT CAPITAL AND STRONG ASSET QUALITY
PBL has a strong capital base and capital adequacy stands at
12.64 percent of the risk weighted assets against the regulatory
requirement of 10 percent. The bank is also well positioned to
maintain capital under Basel-II.
OUR COMMITMENTS
PBL is committed to deliver value to its stakeholders. The bank will
continue to provide effective and competitive financials solutions and
services to its customers. It will continue to enhance the shareholders
value through consistent financial performance and efficient capital
management. PBL will foster a strong performance and learning
culture that allows the development and talents of its employees so
that they can effectively play the role of PBL Brand Ambassador.
18
Milestones
Memorandum and Articles of Association signed by the Sponsors
05.02.1995
12.02.1995
12.02.1995
20.02.1995
08.04.1995
17.04.1995
17.04.1995
18.12.1995
29.08.1999
Subscription Opened
09.09.1999
Subscription Closed
22.09.1999
15.11.1999
27.03.2000
29.03.2000
29.03.2000
14.03.2000
29.03.2001
11.12.2003
29.03.2004
15.06.2004
17.04.2005
30.06.2005
06.01.2006
08.07.2006
15.03.2007
Launching of ATM
11.03.2008
01.08.2009
04.08.2009
05.12.2009
19.11.2009
31.12.2009
Incorporation of PBIL
28.04.2010
Incorporation of PBSL
29.04.2010
25.05.2010
25.08.2010
22.09.2010
06.01.2011
02.08.2011
01.09.2011
25.03.2012
20.05.2012
Board of Directors
M.A. Khaleque
Vice-Chairman
Mr. M. A. Khaleque is the founder and Sponsor Director of Prime Bank Limited. He
has been elected Vice Chairman of the Board in the 367th Meeting of the Board of
Directors held in August 24, 2011. During the last 25 years, he has set an enviable
standard by establishing high end institutions ranging from banks, non-banks, life
and general insurance in the country. Mr. M. A. Khaleques name has now become
synonymous with some of the finest institutions having high professional outlook
and vision in the nation. Spanning over a period of around 20 years, success came
as a matter of choice through Prime Finance & Investment Ltd, Fareast Islami Life
Insurance Company Ltd., Prime Insurance Ltd., Fareast Finance & Investment Ltd.,
PFI Securities Ltd., Fareast Stocks and Bonds Ltd., Prime Islami Securities Ltd.,
Prime Prudential Fund Ltd., Prime Financial Securities Ltd. some of which are
already market leaders in their respective fields. Having set epoch making
standards in the financial arena, he set his sight into the emerging information
technology, booming property sector and promising Agro-based sector of the
country and his dreams were fulfilled through promotion of GETCO Limited /
GETCO Agrovision Ltd., GETCO Telecommunications Ltd., HRC Technologies Ltd.,
Prime Property Holdings Limited and PFI Properties Ltd. He is a member of the
Board of Governors, Primeasia University. His social contribution came through his
foundation under the name and style of MAK Foundation through establishment of
a good number of educational institutions such as University, Degree College,
Technical College, Krishi College, High School, Girls High School, Kindergartens
and Madrasahs imparting quality education in the society. He is actively involved
with SEBA, a benevolent organization in Bangladesh. He is currently the Chairman
of Fareast Finance & Investment Limited, Fareast Stocks and Bonds Ltd., Prime
Property Holdings Ltd. and PFI Properties Ltd.
He is also a Member of the Audit Committee of the Board of Directors of Prime Bank
Limited.
Besides involvement in the bicycle industry, Meghna has a joint venture of Hanger
manufacturing unit with the renowned Mainetti of Italy. The group also has business
stake in a white cement manufacturing unit, a joint venture with eminent Sian Group of
Thailand. In the recent years, Meghna has started a new line of business of
manufacturing garments accessories; where fully automated corrugated carton factory
is already in operation and other related manufacturing units like button, poly bags,
printed & woven labels and tags, tapes & elastics, yarn & dyeing etc. are in the pipeline.
Meghna Group is very successful in the automotive sector in Bangladesh. Mehgna
is the sole distributor of prestigious German Brand BMW. KIA Motors from Korea is
also represented by the group in the country.
For its excellent performance & contribution to national economy Meghna Group has
been awarded many times by the Govt. & non govt. bodies. For the export
performance in the year 2008. Transworld Bicycle Co. Limited received the National
Export Trophy Gold and Meghna Bangladesh limited received National Export
Trophy Silver. Meghna was awarded with the Business Enterprise of the year
2009 in the Daily star DHL Bangladesh business award. In the year 2005 Meghna
received the BMW Best Facility in the region Award from BMW Asia Limited.
Mr. Mizanur Rahman is one of the Sponsor Directors of the best performing private
sector Bank Prime Bank Limited. Mr. Rahman was the Chairman of the Board of
Directors in the year 2003-2004.
Widely traveled Mr. Rahman is a member of Kurmitola Golf Club, Dhaka
Cantonment.
Tanjil Chowdhury
Mr. Mafiz Ahmed Bhuiyan was elected Chairman, Executive Committee of the
Board of Directors of Prime Bank Limited in the 367th Meeting of the Board. A
Sponsor Director, Mr. Bhuiyan was Vice Chairman of the Board prior to his present
position. Mr. Bhuiyan is an entrepreneur and has the distinction of making
substantial contribution in the Backward Linkage Industry setup in the RMG sector
in its early years. He also pioneered in setting up joint-venture projects in the country
with the collaboration of the developed countries like Taiwan and Korea. Currently,
he is Director of Australian International School (International Holdings Ltd), Life
Member & Vice Chairman of Eastern University Foundation (Eastern University),
Life Member of South East Foundation (Southeast University) and Managing
Director, Shepherd World Trade Ltd. He is also representing Shepherd World Trade
Limited to the Board of Citizen Securities & Investment Limited as Chairman.
Besides, he is Life Member of numerous educational and social welfare
organizations. A widely traveled person, Mr. Bhuiyan is also a keen lover of Games
& Sports and actively participates in the Golfing events.
Mr. Tanjil Chowdhury is the Director of Prime Bank Limited and currently serves as
the Vice Chairman of the Executive Committee. He is the Managing Director of East
Coast Group of companies, a diversified conglomerate with primary focus on Oil &
Energy. Mr. Chowdhury is the Vice President of Bangladesh Merchant Bankers
Association (BMBA) and President of Solar Module Manufacturers Association of
Bangladesh (SMMAB). He is also Chairman of Prime Exchange Singapore Pte Ltd,
the banks remittance arm in Singapore. He is the Secretary General of Prime Bank
Cricket Club, an initiative of Prime Bank Foundation (PBF). He is a guest lecturer at
American International University Bangladesh (AIUB), Faculty of Business
Administration. His lecture topics include Financial Derivatives and Investment
Management. Mr. Chowdhury did his BA (Hons) in Accounting and Finance and
went on to complete MSc. in International Management (Finance), from Kings
College London, University of London. Mr. Chowdhury is an active member of BBC
Film Society. He is also a keen golfer and his current handicap is 21.
In her leisure time she enjoys working out, shopping and cooking variety of culinary
dishes for her family.
Mrs. Nazma Haque is one of the Sponsor Directors of Prime Insurance Company
Limited. Mrs. Nazma Haque, Graduate in Economics, under Dhaka University, is a
successful business personality as well. She is Executive Director of Bangla Trac
Limited, Chairman of Anirban Enterprise Limited and also Director of Asian Gate
Limited, ACORN Limited And THANE Technology Limited.
Outside business life, Mrs. Nazma Haque is an active social worker and deeply
engaged in Social Welfare programs in Rajshahi. She is one of the founders of
Bangla Trac Cricket Academy, located in Rajshahi and engaged in training
underprivileged boys of the locality.
She is also a Member of the Audit Committee of the Board of Directors of Prime
Bank Limited.
Nazma Haque
Director
Quazi Sirazul Islam is a Sponsor Director & Former Chairman of Prime Bank
Limited. He took part in countrys liberation war in 1971 and later elected as Member
of Parliament in 1996 and 2001. Mr. Islam is the Managing Director of Amin
Jewelers Limited, one of the famous Jewelry House in the country. He is the Chief
Advisor of Sonar Bangla Insurance Limited. He is also the Member of Gulshan Club
Limited. Mr. Islam is the Chairman of City Hospital (Burn Hospital), which is the only
Private Sector Hospital of this kind in Bangladesh. He is a Member of the Board of
Governors of Peoples University of Bangladesh. A philanthropist by nature Mr.
Islam was awarded Kabi Jasimuddin Gold Medal, Maulana Akram Khan Gold
Medal, Sufi Motahar Hossain Gold Medal and Atish Dipankar Gold Medal for
remarkable contribution in education. He was also awarded MJF (Melvin Jones
Fellow) Medal by the Lions International Foundation for his contribution to the
Society.
Quazi Sirazul Islam
Director
Salma Huq
She is also a Member of the Executive Committee of the Board of Directors of Prime
Bank Limited.
Director
Mrs. Nasim Anwar Hossain is one of the Sponsor Directors of Prime Bank Limited.
Mrs. Hossain, Masters in Political Science from Dhaka University, is a successful
business personality as well. She is Director of Prime Cement Ltd., Lubricants Asia
Ltd., Bengal Tiger Cement Industries Limited.
Mrs. Hossain is an active social worker and takes keen interest in different
benevolent and philanthropic activities.
She is also a Member of the Executive Committee of the Board of Directors of Prime
Bank Limited.
Muslima Shirin
Director
Mr. Md. Nader Khan is one of the Sponsor Directors and former Chairman of Prime
Bank Limited. He has already proved himself as a very prominent business
entrepreneur by setting many high-end establishments in different business sectors.
He is playing important roles in different companies such as:
Managing Director:
Pedrollo nk Limited
Pragati Corporation
Polyexprint Ltd.
Polyex Laminate Ltd.,
Halda Valley Tea Co. Ltd.
Polytape Ltd.
PNL Water Management Ltd.
Director
Chairman:
Artisan Ceramics Ltd.
New Vision Information Technology Ltd.
Director:
Prime Bank Limited
Prime Finance & Investment Ltd.
National Life Insurance Co. Ltd.
Prime Insurance Ltd.
The Consolidated Tea and Lands Company (BD)
Hill Plantation Ltd.
Baraoora (Sylhet) Tea Company Ltd.
He completed his Graduation from Chittagong College under Dhaka University in
1967. One of his business concern, Pedrollo nk Limited, is the market leader in
water pump Business in Bangladesh since 1985. Mr. Md. Nader Khan was honored
with Prime Ministers Award 2010 for his contribution in tree plantation.
As a goodhearted personality, Mr. Nader Khan is actively involved in diverse CSR
activities. He is the Chairman of Lion Mukhlesur Rahman Foundation, Lion Mukhlesur
Rahman Plastic Surgery Hospital, Zero Club Foot Project, Founder of Cider
International School, Ex- Governor (2000-2001) of Lions Club International- District
315 B4 Bangladesh, to mention a few. He is the trustee Member of Independent
University of Bangladesh (IUB) & Chittagong Independent University (CIU).
Mr. Khan believes hard work and business integrity are the keys to success. He
feels a leader with vision is necessary to give proper directions for our economic
development. He is now desirous for contributing in national development through
expanding business to quality education service and tea plantation which sector are
yet to be developed in our country.
Nafis Sikder
Director
Mr. Imran Khan is one of the Directors of Pedrollo nk Limited market leader of
PEDROLLO Brand Water pumps of Italy in Bangladesh. A promising business
personality of the country, he is also Director of PNL Holding Limited, PNL Water
Management Limited, Polyexprint Ltd, Polyexlaminate Ltd, Halda Valley Tea Co.
Ltd, Hill Plantation Limited.
An Ex-Cadet of Fauzdarhat Cadet College, Chittagong, Mr. Khan completed his
graduation in BBA (Marketing) from North South University, Dhaka.
Mr. Khan is actively associated with various social activities. He is a member of the
Governing body of Lion Mukhlesur Rahman Foundation a renowned Charitable
organization, Chittagong.
Imran Khan
Director
Mr. Manzur Murshed, a retired govt. official, appointed Depositor Director of Prime
Bank Limited on 19th March 2009 and reappointed in 2012. He graduated in
Engineering (Electrical) in 1961 from the University of Dhaka and MA (Public Admin)
and retired from services as member, Planning & Development in December 1995.
He was also Director of Eastern Cables Ltd. He is a Fellow of IEB, Member of Dhaka
Club and Kurmitola Golf Club. He at present runs a consultancy firm offering
expertise services for the development of the Power Sector in the country.
Manzur Murshed
Director
Mr. Md. Ehsan Khasru joined as Managing Director of Prime Bank Limited on 15
September, 2011. Prior to joining Prime Bank Limited, he was Additional Managing
Director of The City Bank Ltd.
In his long 30 years banking career, he has held various responsible management
positions in Credit Risk Management, Risk Management, Credit Administration and
Relationship Management.
Mr. Khasru started his illustrious banking career in 1983 as a Probationary Officer in
National Bank Ltd. In 1985, he joined National Credit and Commerce Bank Ltd. After
serving eight years, in 1992 he moved to American Express Bank in the Marketing
Manager (Relationship) position in the Business & Corporate Banking Division and
served there till 1999. Later on, in 2000, he went abroad and worked for Royal Bank
of Canada and Bank of Montreal as a Senior Manager (Relationship) and Financial
Services Manager respectively till 2007.
Mr. Khasru returned to Bangladesh in 2007 and joined Eastern Bank Limited as
Head of Credit Risk Management. Subsequently, in 2008, he joined the City Bank
Ltd. as SEVP and Head of Credit Risk Management where he received elevation
twice in three years. During this time he was also promoted to the rank of Additional
Managing Director for his contribution as the Chief Risk Officer of the bank.
An MBA in Marketing from the Institute of Business Administration (IBA), University
of Dhaka in 1982, Mr.Khasru achieved his Bachelor (Hons) in Economics from
Dhaka University in 1979.
Corporate Governance
Board of Directors
Mr. Md. Shirajul Islam Mollah
Chairman
Vice Chairman
Vice Chairman
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Chairman
Vice Chairman
Member
Member
Member
Member
Member
Audit Committee
Prof. Ainun Nishat
Chairman
Member
Member
Member
Member
Independent Director
Advisor
Chairman
Member
Member
Member
Member
Member
Member
Member
Member
Member Secretary
by
creating
Note of appreciation:
I had intended to include more areas of operation in this
report but as they have been attended in different sections
of the Annual Report, I leave it to you to peruse them.
Therefore, before concluding I like to acknowledge and
thank a number of people and organization for contributing
towards our success.
First of all, I like to extend sincerest thanks to our valued
shareholders for their continuous support and inspiration.
My deepest gratitude goes to our Regulators specially the
Bangladesh Bank for their guidance and advice without
which bank might not have achieved consistent level of
growth matching the key milestones of performance.
I also like to thank our external auditors for carrying out the
auditing task professionally and advising us on the
compliance issues relating to International and Bangladesh
Accounting Standards. Continuous appreciation of our
format/presentation of the Financial Statements at home &
aboard bears the testimony of the compliance status.
I also like to thank all my colleagues in the Board of
Directors, the Management along with entire workforce of
the bank particularly the team associated with the hard
work of bringing out this voluminous Annual Report of the
year- 2012.
Finally, I like to do a justice by recalling our dear sponsor
colleague, Md.Abul Quashem who died premature in a
tragic road accident in June 2012. He was young and a
great sole inclined to volunteer for the cause of the bank.
His sudden departure shall be sadly missed, we, as such
acknowledge with deep appreciation and gratitude his
contributions for the bank with the sincerest hope that his
innocent sole shall rest in heavenly peace. Amin!
With the hope that our sailing through success shall
continue in the year 2013 as well.
Risk Management
Contribution to Remittance
Remittance has been playing a crucial role in economic
development of the country and your Bank has taken a
number of initiatives to take advantage of the global trend
in continuous growth of remittance flow towards the
developing countries. PBL has its foothold through its
correspondent network globally and at home. Prime
Exchange Co. Pte Ltd., Singapore and Prime Exchange
(UK) Ltd. operating have channeled remittance of foreign
expatriates. The Bank has signed agreements with
different overseas banks to facilitate collection of
remittance. Overall remittance increased by Tk 5.55 billion
registering a growth of 15 percent over the previous year.
Brand & Brand Reputation
The Banks phenomenal performance has been reflected
not only in its financial performance but with honors and
awards on local and global fronts. The Bank received the
Bizz 2012- Inspirational Company Award from World
Confederation of Businesses (WORLDCOB) at a program
held in Barcelona, Spain. Among other notable
international awards, Prime Bank Limited received the
Best Bank Award from The Institute of Chartered
Accountants of Bangladesh (ICAB) eight times in a row on
the basis of evaluation of the Presented Accounts and
Annual Reports of 2011 in the Private Banking Category.
The Bank received the award of the Strongest Bank in the
Country at the Strong Rated Bank Award 2012 in
recognition to its efficient asset management. Furthermore,
the Bank proved its business sustainability by winning "The
Daily Star-DHL Bangladesh Business Award-2011" in the
category of Best Financial Institution. Other awards that
the Bank has achieved over the years are International
Star for Leadership in Quality (ISLQ) Award in the Gold
category by the Business Initiative Directions (BID) in
Paris, France, the prestigious SAFA (South Asian
Federation of Accountants) Award on the basis of the
evaluation of annual report, Best Corporate Award for 2
consecutive times. These awards demonstrate the Banks
transparency in its presented accounts, strict adherence to
regulations and disclosure of corporate governance
practices in the Banking Sector of Bangladesh.
Islamic Banking
3.
4.
5.
Bank
Limited
has
been
functioning
as
: Chairman
(Depositor/Independent Director)
2)
Mr. K. M. Khaled
: Member
3)
Mr. M. A. Khaleque
: Member
4)
: Member
5)
(Independent Director)
Reviewing
Internal
Auditors
findings
on
the
1.
2.
Board.
Financial
Statements,
2012
prepared
by
Chowdhury
&
Co.
and
recommended
for
Academy) at
Capital.
the
&
ensured
health
b)
c)
2)
3)
4)
5)
Nasiruddin Ahmed
Member Secretary
28 February, 2013
Board of Directors
Prime Bank Limited
Adamjee Court Annex Building-2
119-120 Motijheel Commercial Area
Dhaka-1000
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.
Corporate Governance
Fairness, Transparency, Accountability and Responsibility
are the minimum standard of acceptable corporate
behavior today. At PBL, corporate governance means
increasing the shareholders value by being efficient,
transparent, professional and accountable to the
organization, society and the environment.
Board of Directors
The number of Board member is 19 as per the Bangladesh
Banks guideline. Out of the 19 members one member is an
Independent Director and two members are from the
Depositors. Thus the bank has also complied with the
Bangladesh Securities and Exchange Commissions
corporate governance guidelines. Board members include
persons of high caliber, with academic and professional
qualification in the field of business and professionals. This
gives strength for effective discharge of duties and
responsibilities by the Board. The Board approves the
banks budget and business plan and reviews those on
monthly basis so as to give directions as per changing
economic and market environment. The Board reviews the
policies and manuals of the various segments of businesses
in order to establish effective risk management in credit and
other key areas of operations. The Board and the Executive
Committee review the policies and guidelines issued by the
Bangladesh Bank regarding credit and other operations of
the banking industry. The management operates within the
policies, manuals and limits approved by the Board. Regular
meeting of the Board is held, at least once in a month.
Code of Conduct
The Board of Directors of PBL adopted the following Code of
Conduct for Members of the Board to provide guidance to
directors to carry out their duties in an honest, responsible and
businesslike manner and within the scope of their authority, as
set forth in the laws of the country as well as in the
Memorandum and Articles of Association of the company.
Members are expected to comply with the following standards
to enhance and maintain the reputation of the Company:
The Members shall act honestly, in good faith and in
the best interests of the shareholders and the
company.
The members shall not make improper use of
information acquired as a director.
The members shall not take improper advantage of the
position of a director.
The members will be obligated to be independent in
judgment and actions and take all reasonable steps to
party
Corporate Governance
by
Prime
Bank
Shariah
Supervisory
Budget
Budget Actual
Achievement
2012
2012
(%)
Profit before provision
8.50
8.55
101
Deposit
200.00 182.05
91
Advance
160.00 160.89
101
Import
210.00 168.53
80
Export
158.00 143.61
91
Inward Remittance (Foreign) 43.00 42.45
99
Guarantee
33.00 29.39
89
Particulars
Risk Management
PBL has a comprehensive risk management policy details of which
are given in Risk Management chapter of this Annual Report.
01
02
03
05
08
01.
02.
03.
04.
05.
06.
06
07
09
04
10
07.
08.
09.
10.
11
12
13
14
15
16
17
18
19
20
11.
12.
17.
18.
19.
20.
21.
22.
Corporate Governance
Monitoring unit.
effectiveness
of
risk
conducted
within
the
framework
of
principles,
management
Comprehensive Audit
SL
Comprehensive inspection of
40
30
Surprise inspection of
53
52
64
60
Inspection of overseas
03
01
2011
8
2011
8 times
8 times
16
33
2012
16
33
branches branches
1
Compliance Unit
The Bangladesh Bank BRPD Circular no. 17 dated
October 07, 2003 advised the scheduled commercial
banks operating in the country to put in place effective risk
management system which includes money laundering risk
Corporate Governance
to
Central
implementation
of
Information
Security
Access control
Password compromising
Network security
Systems continuity
Ratings
below:
CRISL Rating
Surveillance Rating-2010
Surveillance Rating-2011
Outlook
Stable
Corporate Governance
The Bangladesh Securities and Exchange Commission (BSEC) requires all listed companies to report on the compliance
of the conditions described in BSECs notification dated 7 August 2012 on Comply basis. The Board of Directors of the
Company has taken appropriate steps to comply with the conditions as detailed in Annexure I, II & III below:
Annexure I
a. Number of Board Meetings, attendance of Directors and their Remuneration:
Serial
No.
Name of Incumbent
Directors
01
02
03
(Appointed on 01.03.2012)
Remuneration
Drawn
(Tk.5000.00/ Meeting
Meeting held
Attended
Chairman
Vice Chairman
19
19
18
11
Tk.90,000.00
Tk.55,000.00
Vice Chairman
16
02
Tk.10,000.00
Position
04
Director
16
10
Tk.50,000.00
05
Director
16
08
Tk.40,000.00
Director
13
11
Tk.55,000.00
08
09
Director
Director
19
19
12
16
Tk.60,000.00
Tk.80,000.00
Director
17
02
Tk.10,000.00
10
Director
17
17
Tk.85,000.00
11
12
Director
19
17
Tk.85,000.00
16
12
Tk.60,000.00
Director
17
16
Tk.80,000.00
Director
Director
19
19
10
18
Tk.50,000.00
Tk.90,000.00
16
Director
11
07
Tk.35,000.00
17
18
19
20
Depositor/Independent Director
Independent Director
Depositor/Independent Director
Managing Director
19
19
19
19
13
18
18
18
Tk.65,000.00
Tk.90,000.00
Tk.90,000.00
Nil
Meeting held
Attended
06
07
13
14
15
Serial
No.
01
02
03
04
05
06
07
08
09
10
11
(Appointed on 01.03.2012)
(Appointed on 01.03.2012)
(Appointed on 10.04.2012)
(Appointed on 01.03.2012)
(Appointed on 01.03.2012)
(Appointed on 01.03.2012)
(Appointed on 01.03.2012)
(Appointed on 21.05.2012)
Name of the
resigned/deceased Directors
Director
Position
Remuneration
Drawn
(Tk.5000.00/ Meeting
Former Director
03
--
--
Former Director
03
03
Tk.15,000.00
Former Director
03
02
Tk.10,000.00
Former Director
06
03
Tk.15,000.00
Former Director
02
--
--
Former Director
02
02
Tk.10,000.00
Former Director
03
03
Tk.15,000.00
Former Director
07
04
Tk.20,000.00
Former Director
03
03
Tk.15,000.00
Former Director
08
08
Tk.40,000.00
Former Director
02
02
Tk.10,000.00
(Resigned on 01.03.2012)
(Resigned on 01.03.2012)
(Resigned on 01.03.2012)
(Resigned on 10.04.2012)
(Resigned on 01.03.2012)
(Resigned on 01.03.2012)
(Resigned on 01.03.2012)
(died on 01.03.2012)
(Resigned on 01.03.2012)
(Resigned on 21.05.2012)
(Resigned on 01.03.2012)
Remuneration
Drawn
(Tk.5000.00/ Meeting
Meeting held
Attended
Chairman
Vice Chairman
Director
22
22
22
19
19
20
Tk.95,000.00
Tk.95,000.00
Tk.100,000.00
Director
19
19
Tk.95,000.00
05
Director
19
07
Tk.35,000.00
06
Director
12
02
Tk.10,000.00
07
Director
09
03
Tk.15,000.00
Meeting held
Attended
Serial
No.
Name of Incumbent
Directors
01
02
03
04
Serial
No.
(Appointed on 01.03.2012)
(Appointed on 01.03.2012)
(Appointed on 17.06.2012)
(Appointed on 26.07.2012)
Position
Position
Remuneration
Drawn
(Tk.5000.00/ Meeting
Former Director
03
03
Tk.15,000.00
02
(Resigned on 01.03.2012)
Former Director
03
--
--
03
Former Director
04
01
Tk.5,000.00
04
Former Director
03
02
Tk.10,000.00
05
Former Director
08
05
Tk.25,000.00
06
Former Director
06
--
--
01
(Resigned on 01.03.2012)
(Resigned on 17.06.2012)
(Died on 27.06.2012)
(Resigned on 10.04.2012)
Remuneration
Drawn
(Tk.5000.00/ Meeting
Meeting held
Attended
Chairman
Director
08
08
08
03
Tk.40,000.00
Tk.15,000.00
Position
01
02
03
Director
08
03
Tk.15,000.00
04
(Appointed on 10.04.2012)
Director
05
04
Tk.20,000.00
05
Director
08
07
Tk.35,000.00
Meeting held
Attended
03
01
Serial
No.
01
M. A. Khaleque
(Resigned on 10.04.2012)
Position
Former Director
Remuneration
Drawn
(Tk.5000.00/ Meeting
Tk.5,000.00
Corporate Governance
ii)
Shareholding of Directors:
Serial
No.
Name
Position
Annexure II
% of shares as at
31.12.2012
Chairman
2.01
Mr. M. A. Khaleque
Vice Chairman
2.12
Vice Chairman
2.00
Director
2.03
Director
2.37
Director
2.01
Director
2.78
Director
2.00
Director
3.13
10
Director
2.00
11
Director
2.00
12
Director
3.69
13
Director
2.00
14
Director
2.70
15
Director
2.51
Director
16
2.00
17
Depositor/Independent Director
18
Depositor/Independent Director
0.003
19
20
iii)
Independent Director
Managing Director
1.
2.
3.
4.
iv)
Executives (Top five salaried person other than CEO, CFO, CS, HIA)
1.
2.
3.
4.
5.
Annexure III
Status of Compliance with the condition imposed by the Bangladesh Securities and Exchange Commissions
Notification No. SEC/CMRRCD/2006-158/134/Admin/44 dated 07 August, 2012:
Condition
No.
1.0
1.1
1.2
Title
1.2 (i)
1.2 (ii)
1.2 (ii) b)
1.2 (ii) c)
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 (iii)
1.2 (iv)
1.2 (v)
1.2 (vi)
Not
complied
Board of Directors
1.2 (ii) a)
Remarks
(if any)
Independent Director
Such appointment is
to be approved in the
ensuing 18th AGM
No such vacancy
Formal code of conduct has
been clearly spelled out
and approved by the board
Corporate Governance
Condition
No.
1.3
1.3 (i)
1.3 (ii)
1.3 (iii)
1.4
Title
Complied
N/A
1.5 (i)
1.5 (ii)
future
1.5 (iv)
1.5 (v)
1.5 (vi)
1.5 (vii)
1.5 (viii)
1.5 (ix)
1.5 (x)
1.5 (xi)
1.5 (xii)
1.5 (xiii)
1.5 (xiv)
Not
complied
1.5
1.5 (iii)
Remarks
(if any)
N/A
N/A
N/A
Condition
No.
1.5 (xv)
1.5 (xvi)
1.5 (xvii)
1.5 (xviii)
1.5 (xix)
Title
The system of internal control is sound in design and
has been effectively implemented and monitored.
Remarks
(if any)
Not
complied
N/A
1.5 (xx)
1.5 (xxi)
The pattern of shareholding shall be reported to disclose the aggregate number of shares
(along with name wise details where stated below) held by:
2.2
Audit Committee:
3 (i)
3 (ii)
Corporate Governance
Condition
No.
Title
Remarks
(if any)
Not
complied
3 (iii)
3.1
3.1 (i)
3.1 (ii)
3.1 (iii)
3.1 (iv)
3.1 (v)
3.1 (vi)
3.2
3.2 (i)
3.2 (ii)
3.3
3.3 (i)
3.3 (ii)
3.3 (iii)
3.3 (iv)
3.3 (v)
3.3 (vi)
3.3 (vii)
3.3 (viii)
3.3 (ix)
3.3 (x)
N/A
N/A
Condition
No.
Title
Remarks
(if any)
Not
complied
3.4.1
3.4.1 (i)
3.4.1 (ii)
NIL
NIL
Communicated to
regulator duly
3.4.2
NIL
3.5
NIL
4 (i)
4 (ii)
4 (iii)
4 (iv)
Broker-dealer services.
4 (v)
Actuarial services.
4 (vi)
4 (vii)
4 (viii)
Subsidiary Company
5 (i)
5 (ii)
Corporate Governance
Condition
No.
Title
Remarks
(if any)
Not
complied
6 (i) a)
6 (i) b)
6 (ii)
7 (i)
7 (ii)
5 (iii)
5 (iv)
5 (v)
6 (i)
Annexure-IV
Status of Compliance of Bangladesh Banks guidelines for Corporate Governance (BRPD circular no 16 dated 24.07.2003)
Sl
No.
1.
Compliance
Status
Particulars
Responsibilities and authorities of the board of directors:
Complied
Complied
Complied
Complied
Complied
i) The board shall determine the objectives and goals and to this end shall chalk out strategies and
work-plans on annual basis. It shall specially engage itself in the affairs of making strategies
consistent with the determined objectives and goals and in the issues relating to structural change
and reorganization for enhancement of institutional efficiency and other relevant policy matters. It
shall analyze/monitor at quarterly rests the development of implementation of the work-plans.
ii) The board shall have its analytical review incorporated in the Annual Report as regard the success/
failure in achieving the business and other targets as set out in its annual work-plan and shall
apprise the shareholders of its opinions/recommendations on future plans and strategies. It shall
set the Key Performance Indicators (KPIs) for the CEO and other senior executives
and have it evaluated at times.
(i) The policies, strategies, procedures etc. in respect of appraisal of loan/investment proposal, sanction,
disbursement, recovery, reschedulement and write -off thereof shall be made with the boards approval
under the purview of the existing laws, rules and regulations. The board shall specifically distribute the
power of sanction of loan/investment and such distribution should desirably be made among the CEO
and his subordinate executives as much as possible. No director, however, shall interfere, directly or
indirectly, into the process of loan approval.
(ii) The board shall frame policies for risk management and get them complied with and shall monitor at
quarterly rests the compliance thereof.
The board shall be vigilant on the internal control system of the bank in order to attain and maintain
satisfactory qualitative standard of its loan/investment portfolio. It shall review at quarterly rests the
reports submitted by its audit committee regarding compliance of recommendations made in internal
and external audit reports and the Bangladesh Bank inspection reports.
(i) Policies relating to recruitment, promotion, transfer, disciplinary and punitive measures, human
resources development etc. and service rules shall be framed and approved by the board. The
chairman or the directors shall in no way involve themselves or interfere into or infiuence over any
administrative affairs including recruitment, promotion, transfer and disciplinary measures as executed
under the set service rules. No member of the board of directors shall Compled be included in the
selection committees for recruitment and promotion to different levels. Recruitment and promotion to
the immediate two tiers below the CEO shall, however, rest upon the board. Such recruitment and
promotion shall have to be carried out complying with the service rules i.e., policies for recruitment and
promotion.
(ii) The board shall focus its special attention to the development of skills of banks staff in different fields
of its business activities including prudent appraisal of loan/investment proposals, and to the adoption
of modern electronic and information technologies and the introduction of effective Management
Information System (MIS). The board shall get these program incorporated in its annual work plan.
(i) The annual budget and the statutory nancial statements shall finally be prepared with the approval
of the board. It shall at quarterly rests review/monitor the positions in respect of banks income,
expenditure, liquidity, non-performing asset, capital base and adequacy, maintenance of loan loss
provision and steps taken for recovery of defaulted loans including legal measures.
(ii) The board shall frame the policies and procedures for banks purchase and procurement activities
and shall accordingly approve the distribution of power for making such expenditures. The maximum
possible delegation of such power shall rest on the CEO and his subordinates. The decision on matters
relating to infrastructure development and purchase of land, building, vehicles etc. for the purpose of
banks business shall, however, be adopted with the approval of the board.
Corporate Governance
Sl
No.
Particulars
For decision on urgent matters an executive committee, whatever name called, may be formed with
Compliance
Status
Complied
the directors. There shall be no committee or sub-committee of the board other than the executive
committee and the audit committee. No alternate director shall be included in these committees.
The board shall appoint a competent CEO for the bank with the approval of the Bangladesh Bank.
2.
Complied
director) does not personally possess the jurisdiction to apply policymaking or executive authority, he
shall not participate in or interfere into the administrative or operational and routine affairs of the bank.
Complied
(b) The chairman may conduct on-site inspection of any bank-branch or nancing activities under the
purview of the oversight responsibilities of the board. He may call for any information relating to banks
operation or ask for investigation into any such affairs; he may submit such information or investigation
report to the meeting of the board or the executive committee and if deemed necessary, with the
approval of the board, he shall effect necessary action thereon in accordance with the set rules through
the CEO. However, any complaint against the CEO shall have to be apprised to Bangladesh Bank
through the board along with the statement of the CEO.
(c) The chairman may be offered an of ce-room, a personal secretary/assistant, a telephone at the
of ce and a vehicle in the business-interest of the bank subject to the approval of the board.
3.
The adviser, whatever name called, shall advise the board of directors or the CEO on such issues only
for which he is engaged in terms of the conditions of his appointment. He shall neither have access to
the process of decision-making nor shall have the scope of effecting executive authority in any matters
Complied
The CEO of the bank, whatever name called, shall discharge the responsibilities and effect the
authorities as follows:
(a) In terms of the nancial, business and administrative authorities vested upon him by the board, the
CEO shall discharge his own responsibilities. He shall remain accountable for achievement of nancial
and other business targets by means of business plan, ef cient implementation thereof and prudent
administrative and nancial management.
(b) The CEO shall ensure compliance of the Bank Companies Act, 1991 and/or other relevant laws and
regulations in discharge of routine functions of the bank.
(c) The CEO shall report to Bangladesh Bank of issues violative of the Bank Companies Act, 1991 or
of other laws/regulations and, if required, may apprise the board post facto.
(d) The recruitment and promotion of all staff of the bank except those in the two tiers below him
shall rest on the CEO. He shall act in such cases in accordance with the approved service rules on
the basis of the human resources policy and sanctioned strength of employees as approved by the
board. The board or the chairman of any committee of the board or any director shall not get involved
or interfere into such affairs. The authority relating to transfer of and disciplinary measures against the
staff, except those at one tier below the CEO, shall rest on him, which he shall apply in accordance with
the approved service rules. Besides, under the purview of the human resources policy as approved by
the board, he shall nominate of cers for training etc.
Complied
Sustainability
Report
Corporate sustainability is a business approach that
creates long-term consumer and employee value by
not only creating a green strategy aimed towards the
natural environment, but taking into consideration every
dimension of how a business operates in the social,
cultural, and economic environment. It also formulates
strategies to build a company that fosters longevity
through transparency and proper employee development.
In respect of corporate sustainability, PBL has focused on
following specific key areas of:
Nation building
Protection of environment
Nation Building
The best way to support the country is to do something
better in the area of operation. PBL constantly showed
strong performance which has helped the stability of the
banking sector. The local and international recognition of
the published accounts has helped to establish integrity
of the countrys financial system. PBL will continue to
play the pivotal role in this regard. Agriculture and SME
financing have become keys to economic growth of the
country and without opening up of the financial sector to
semi urban and rural areas, the projected growth of the
economy will not be achievable. PBL has given strong
focus in these areas which are evident from the growth rate
achieved during the year. Public service is still inefficient
and as such emphasis is also given in infrastructure
development which includes financing for communication,
telecommunication, bridge, roads and highways etc. This
will have positive impact in national growth.
Contribution to National Exchequer
PBL has contributed significantly to the governments
effort in collection of revenue. As per law, the bank deducts
at sources income taxes, VAT and excise duty from
various payments and services and deposits the same
to government exchequer. Besides, the bank also pays
income tax on its earnings. Total payment to government
exchequer during 2012 is depicted below:
Annual Report 2012 64
Particulars
Payment of income tax on banks
earnings
Income tax, VAT and excise duty
deducted at source from various
payment and services by the
bank
Total payment
Taka in million
2012
1,992.69
2011
2,761.31
2,865.19
1,842.41
4,857.88
4,603.72
20%
19%
18%
2010
2011
2010
Above 55
45-55
35-45
25-35
Below 25
Total
29
151
566
1,325
68
2,139
2011
35
162
631
1,401
63
2,292
2012
41
182
786
1,498
37
2,544
2012
Recruitment in 2012
28%
72%
Sustainability Report
Instead of simply filling up the employee gap in certain
positions of the bank, the recruitment and selection team
emphasized on the Best Fit philosophy that can assure
placing right people in right place at the right time. In line
with these, the HR Division has facilitated the recruitment
for a total of 317 including both fresh and lateral candidates
in 2012.
Recruitment trend
318
260
2011
2012
Foundation, 245
IT, 662
Leadership
Development, 41
Core
Banking, 1332
Specialized, 40
Sl.
Title
No.
A. Training Course
01 Foundation Training Course
for MT
02 Foundation Training Course
for TA (General)
03 Foundation Training Course
for TA (Cash)
04 Advanced International Trade
Payment and Finance
Advanced Credit Management
05
(ACM)
06 T-24 System
Total
B. Workshops
01 Reporting System of SBS1, SBS-2 & SBS -3 to
Bangladesh Bank
02 Legal Aspects of Securities
and Documentation
03 Green Banking
04 Bangladesh Electronic Fund
Transfer Network (BEFTN)
05 IT Audit & Security and
Prevention of Fraud in Banks
06 Altitude to create awareness
07 Supply Chain Management
08 Preparation of Rationalized
Input Templates (RIT)
09 Classification of non-performing
loans & advances
10 Office Automation Software
11 Retail Banking and Consumer
Finance
12 Laws, Regulations & Practice
in Banks
13 Risk Based Audit, Internal
Control & Compliance and
Supervision
14 General Banking Operation
15 Credit Risk Grading (CRG)
System in Banks
16 Islamic Banking Operations &
Finance
17 Orientation Program
18 SBS-3 and SME Data
Reporting
19 Centralized Retail Banking
System (RSys)
20 UCPDC 600 and related ICC
Publications
21 Cash Management &
Detection, Disposal of Forged
and Mutilated Notes
22 Priority Banking
21 Rules and Procedures in
Foreign Remittance
22 ADC products and operational
procedure
23 Dual card payment procedure
24 Basel-II: Implication & BaselIII and Stress Testing
25 Ethics, Etiquette & Manner in
Banks
26 Leadership and Negotiation Skills
Total
Grand Total (A+B)
Number
Total
participants
36
69
101
18
60
10
19
143
427
49
67
3
1
145
30
81
12
1
1
238
40
12
38
10
2
200
86
35
37
2
1
75
22
20
2
4
39
122
10
110
20
22
1
1
28
36
113
1
1
36
51
30
1
68
87
41
1,823
2,250
Service Benefit
The bank is maintaining a welfare fund taking contribution
from both employees and the bank to support the employees
and their families on the ground of medical, maternity,
retirement, disability and death claim. In 2012, a total of
Tk 15.02 million was sanctioned to support 314 employees
on the above mentioned ground. Contributory Provident
Fund Facility, Gratuity Fund, Retirement Benefits, Leave
Fare Assistance, Risk Allowance for Tellers, Technical
Allowance, two Festival Bonuses, Incentive / Performance
Bonus, Employee House Building Loan Scheme, Employee
Car Scheme for Executives, Employee Consumer Credit
Scheme Loan, Professional Qualification Achievement
Monetary Award, Scholarship or monetary allowance for
meritorious children of employees through benevolent fund
are mentionable service benefits of the bank.
Organization Development
Provide
Sustainability Report
Revision
2012
1.17
2011
0.81
1.94
1.80
5.30
5.04
3.36
3.24
2.10
2.95
50.02
17.88
Sponsorship of Tk 0.40 million to Prime BankNDDC (Notre Dame College Debate Club) 24th
National Debate Competition;
of Ms Sigma Haque;
of
Tk
0.03
million
to
Tennis
Bangladesh;
Canadian
by
Club;
organized
2012
Sangeet Sammilon;
Showcase
his treatment.
her treatment;
his treatment;
Health
League-2012;
Sustainability Report
Disaster Management
Promotion of Environment
The state of environment is rapidly declining in Bangladesh
and it is also a country vulnerable to climate change. The
Sustainability Report
Green Banking
Green banking considers all the social and environmental
factors along with financial priorities with an aim to
protect the environment as well as to foster the economic
development in a more environment friendly way. It
is an opportunity to make a positive contribution to
Waste Management
Green Marketing
Green Finance
Green finance as a part of green banking makes great
contribution to the transition to resource efficient and low
carbon industries i.e., green industry and green economy.
PBL financed various projects which are environment
communicating
effective
policies,
procedures,
Kuril Flyover
Corporate Management
Senior Management
Left :
Quazi A. S. M. Anisul Kabir
Deputy Managing Director & COO
Middle :
Md. Ehsan Khasru
Managing Director & CEO
Right :
Md. Tabarak Hossain Bhuiyan
Deputy Managing Director & COEM
Managing Director
Md. Ehsan Khasru
Vice President
Senior Executive
Vice President
Habibur Rahman
A. O. M. Rashed
Md. Ezaz Hossain
Md. Nazim Uddin
Md. Iqbal Hossain
Kazi Mahmood Karim
Executive Vice
President
Md. Alamgir
Iqbal Haider
Afzalun Nahar
Mohammad Ashrafuzzaman
S M Parvez Kabir
A B M Shahjahan
Md. Rabiul Ahasan
Md. Nuruzzaman
Mohd. Baqui Billah
Md. Nazrul Islam
Mohammad Asif Chowdhury
Sayed Delwar Hossain
Md. Nasir Uddin
Md. Abdur Raafi
Syed Mahammed Ali Suhel
Mahmood Khan
Md. Ariful Haque
Ekram Ullah Chowdhury
Nazrul Islam
Nehal Hossain
Md. Nazrul Islam
Md. Rabiul Islam
Md. Rezwan Uddin Swhel
Florence Sutopa Majumder
Kamrun Nahar
Md. Mainul Kabir
A K M Abdul Alim Ibne Khabir
Mohammad Jahangir Bhuiyan
Md. Moinul Hasan
Md. Mobasshirul Islam
A T M Ahsan
Kazi Khairul Islam
Amal Chandra Basak
Md. Mizanur Rahman
Mohammad Shawkat Ali
Khandoker Raihan Ali
Md. Emdad Hossain
Mohammad Nazmul Hossain
Mohammad Kamal Uddin
A H M Be-darul Alam Goni
S M Shahidul Islam
Shah Mohd. Zakir Hossain
Md. Touhiduzzaman
Quazi Anwarul Azim
Md. Hashmot Ali Mollah
Shah Mohammad Mohsin
Mohammad Anisur Rahman
A K M Khairul Basher
Masood Mizan
Rupan Kanti Paul
SME Branches
Network
Islamic Banking
Division
Card Division
M-Commerce
ADC
Department
Retail Banking
Division
SME Credit
SME Banking
Division
Head of Small
Medium Retail
Treasury
Front Office
H.O Corporate
Banking Team
Branch Managers
Corporate Banking
Head of Wholesale
Banking Division
Offshor Banking
Units
Corporate Liability
Marketing
Lease Finance
Unit
Export Finance
Unit
Structured Finance
Department
General Credit
Unit-2
General Credit
Unit-1
Treasury
Mid - Office
Risk Managment
Division
Credit Admin
Division
MDs
Secretariat
Operations
Division
Facility Management
Division
(Previously L&SSD)
Recovery
Division
Legal
Division
Agriculture
Support
International
Division
Proprietary
Investment
Department
IT Audit
Department
Internal Audit
& Inspection
Department
Compliance &
Monitoring
Department
Board
Secretariat
Chief Financial
Officer (CFO)
(Financial Admin Division)
Managing
Director
Chairman of the
Board of Directors
Trade Finance
Centralization
Department
Retail Banking
CRM Department
Credit Risk
Management (CRM)
Division
Board Audit
Cell
Head Office
Anti Money
Laundering Cell
Capital Market
Division
Internal Control
& Compliance
Division
Marketing
Division
Resourch &
Development
Project Management
Officer
Human Resources
Divition
IT Divition
Brand
Communication
Department
Public Relations
Department
Strategic Planning
& Business
Promotion Dept
Bangladeshi Companies
Overseas Companies
Management Discussion
and Analysis
Global Economy
World Bank
IMF
Euro Area
World Bank
IMF
USA
World Bank
IMF
Developing World Bank
Countries
IMF
China
World Bank
IMF
India
World Bank
IMF
Bangladesh World Bank
IMF
World
World Bank
IMF
Source:
1.6
1.6
1.5
1.4
1.8
1.8
5.9
6.3
9.3
9.3
6.9
7.9
6.7
6.7
2.7
2.9
2012
2013
(Estimated) (Projected)
1.3
1.3
1.3
1.4
-0.4
-0.1
-0.4
0.2
2.2
1.9
2.3
2.0
5.1
5.5
5.1
5.5
7.9
8.4
7.8
8.2
5.1
6.1
4.5
5.9
6.3
5.8
6.3
6.0
2.3
2.4
2.5
2.7
FY09
4.1
6.5
6.3
5.7
FY10
5.2
6.5
6.5
6.1
FY11
5.1
8.2
6.2
6.7
FY12
2.5
9.5
6.1
6.3
6.3
5.7
6.1
6.7
FY09
FY10
FY11
FY12
Total assets
Deposits
FY11
FY12
5,431.5
4,082.7
6,521.2
4,937.2
7.27
8.15
3,476.8
4,115.4
12.42
13.75
7.1
7.2
9.7
11.3
96.4
93.9
15.5
13.5
1.3
1.2
Future outlook
Recent economic growth of Bangladesh averaging 6.2
percent is undoubtedly impressive. Attainment of the
expected GDP growth in FY13 will depend mainly on
effective adoption of prudent macroeconomic policies in a
sound economic environment along with global economic
Volatile
Brand Image
Deep
Off-shore
Exchange
PBL
Expansion
Internet
Mobile Banking
Credit
Card
Consumer finance
Small
Syndicated
financing
Merchant
Brokerage
Corporate
Management
Wide
customer base
Growth
economic situation
Continuous
Diversified
expansion of branches
product base
of high cost deposits (15 percent) was higher due the tight
liquidity position in the market and devolvement of treasury
Deposit Mix
Scheme Deposits
22.22%
FDR
45.38%
Current &
Contingent
15.37%
Bills Payable
1.88%
Savings Deposits
10.54%
Special Notice
Deposits
4.62%
To employees as
salaries & allowances
To providers of capital as
dividend & reserve
Retained profit
Deferred taxation
h) NPL recovery
Tk 460.24 million had been recovered against NPL
accounts and Tk 85.05 million had been recovered against
Number
of AD
branches
Deposits
Actual
% of Total
Actual
% of
Total
Budget
Operating Profit
%
Actual
Achievement
% of Total
Cluster-1
29
11
47,115
26.55
55,091
36.09
3,002
3,066
102
26.92
Cluster-2
31
47,759
26.91
38,157
24.99
3,147
3,433
109
30.14
Cluster-3
28
40,650
22.90
28,120
18.42
2,625
2,699
103
23.69
Cluster-4
25
41,952
23.64
31,297
20.50
2,326
2,193
94
19.25
All Clusters
113
27
177,476
11,100
11,391
103
152,665
Cluster-1
26.92%
Cluster-3
23.69%
Cluster-2
30.14%
Cluster-1
Cluster-3
Cluster-2
Cluster-4
Others Loans
10.77%
Commercial
Lending
16.10%
Industrial Loan
60.70%
SME Loan
7.60%
House Building
2.68%
Retail Loan
7.03%
Corporate Loan
83.72%
Credit Card
0.57%
Staff Loan
1.08%
Corporate Loan
SME Loan
Retail Loan
Credit Card
Staff Loan
Corporate Banking
Corporate Banking Division (CBD) of PBL serves the
Export Financing
9.74%
Industrial Loan
Others Loans
Commercial Lending
Export Financing
House Building
Others (including
bills) 30.25%
Textile 31.88%
Pharmaceuticals
1.93%
Leather, chemical,
cosmetics 1.43%
Tobacco 0.25%
Textile
Service
Pharmaceuticals
Tobacco
Agriculture
168,532
143,612
133,396
106,943
96,452
76,097
91,424
68,550
147,704
174,384
(Taka in million)
Retail Banking
4th largest card issuer. This has given the bank exclusive
rights for issuing and acquiring JCB card in Bangladesh.
As a result, the bank has now agreement with three
Credit Card
As a continuous process, the bank achieved technological
advancement, service improvement and product
development during the year which contributed to double
digit growth in all of the key performance indicators for
credit card as given below:
Key Performance
Indicators
Year
2009
2010 2011
% Growth
2012 in 2012
over 2011
9
22
24
23
Separate
Small
11%
Medium
83%
Micro
6%
Small
Micro
Medium
Trade
38%
Manufacturing
53%
Service
9%
Trade
Manufacturing
Service
Agriculture financing
At the moment, roughly one-fifth of Bangladeshs GDP
originates from agricultural sector, and the sector
Mango Gardening
An
Agricultural
Lunched
rural credit;
Up
Product-wise outstanding
Livestock 30%
Farm Machineries 1%
Irrigation
equipments 4%
Fisheries
8%
facility,
Ensure
Crop 37%
Others
3%
Poverty alleviation
4%
Fisheries
Crop
Irrigaton equipments
Poverty alleviation
Farm Machineries
Others
Livestock
Fisheries 6%
Crop 40%
Others
3%
Sector
Crop
Irrigation
equipments
Farm
Machineries
Livestock
Fisheries
Crop torage
& Marketing
Poverty
alleviation
Others
Total
Poverty alleviation
4%
Fisheries
Crop
Irrigaton equipments
Poverty alleviation
Farm Machineries
Others
Livestock
Taka in Million
2012
2011
662.36
525.55
175.43
146.36
24.98
63.04
4.09
3.04
41.15
12.62
5.66
4.72
373.22
104.18
422.86
116.88
167.74
193.77
176.52
108.78
317.09
189.72
4.07
3.45
62.29
53.81
41.43
39.48
49.85
44.34
132.22
46.18
1,635.12
1,428.82
724.41
528.53
Islamic Banking
Islamic banking operations of PBL started in the very year
of its establishment in December 1995 through the opening
of Islamic banking branch at Dilkusha, Dhaka. PBL is the
pioneer in such a kind of blending of conventional and
Islamic banking in the country which is followed by many
other banks. With the passage of time, the bank now
carries on its Islamic banking operations through 5 (five)
Islamic banking branches. Objectives of launching Islamic
banking operations by PBL are the followings:
To
To
Treasury Function
Exchange
desk:
Foreign
exchange
Singapore
17%
Oman
1%
Italy
2%
Malayasia
2%
others
10%
KSA
38%
UAE
14%
UK
11%
USA
5%
Correspondent Relationship
PBL has
around
the
world
to
facilitate
international
trade
Foreign remittance
36,890
26,447
2008
2009
2011
2012
any point or from any branch or from any ATM (banks own
ATMs and shared ATMs) or SWIFT. Major IT initiatives
during 2012 were:
RemitF@st
is
web-based
Online
Remittance
Under
The
Using
ATM of PBL
Facility Management
Facility management is an integral and fundamental
requirement for any modern organization. To meet the
goals or objectives, a well-planned logistics strategy
is a primary requisite to the successful outcome of any
operation, especially when establishing, conducting and
even expanding business under crucial environments,
anywhere within or beyond borders. In PBL, the function
of FMD (Facility Management Division) team is delegated
with the administration of planning, organizing, controlling,
staffing, designing, selection and decoration for branch
opening, printing, procurement, inventory, warehousing,
distribution, transportation, safety and security, well-knit
supply chain management, hiring, renewal and purchase
of real estate property. In 2012, the facility management
team successfully accomplished few big challenges of
which important ones are highlighted below:
Annual Report 2012 98
Risk Management
statements of 2012.
The banks capital fund is divided into two parts- Tier-I and
Tier-II capital. Tier-I includes the equity (paid-up capital,
Particulars
Operating income
Operating expenses*
Profit before tax and provision
Net profit before tax
Total assets
Loans and advances
Deposits
Shareholders equity
Net return on equity
Cost income ratio*
Non-performing loan ratio
Capital adequacy
Taka in million
2012
13,492
4,941
8,551
5,335
2,072
236,833
160,890
182,053
20,787
13.53%
36.62%
3.83%
12.64%
2011
11,559
4,132
7,427
6,766
2,780
199,950
138,848
159,816
19,095
20.19%
35.75%
1.37%
12.46%
Human Resources
Loans
Operating
Net
Earnings
Conventional banking
Islamic banking
Off-shore banking
Total
Conventional
to profit;
Off-shore
The
Taka in billion
2012
2011
Growth (%)
4.33
5.82
(25.60)
0.12
25.79
0.86
0.15
5.34
0.83
6.77
3.41
(21.15)
Conventional Banking
2009
2010
2011
2012
No Cost Deposit
81.03 %
Islamic Banking
16.15%
Strong
Taka in million
2012
4,395
(791)
(780)
2,824
2011
7,466
(2,535)
(288)
4,643
In
Particulars
Cash Reserve Requirement (CRR)
Statutory Liquidity Ratio (SLR)
Required
(%)
6.00
Maintained
(%)
6.06
19.00
35.54
Managing Risk
PBL Group recognizes and takes proactive measures
to manage various risks posed by the ever-changing
business environment. These risks which include credit
risk, market risk, liquidity risk and operational risk are
comprehensively dealt with and systematically managed
by established limits and control. PBL established a
structured frame work for risk management which is
intended to balance risk against returns. Details of risk
management of PBL are given in "Risk Management"
chapter of this report.
Monitoring performance through Key Performance
Indicators
The bank tracks the performance against number of
bench marks known as key performance indicators.
The KPIs fall under two categories- financial and nonfinancial. The KPIs are used to track performance against
the planned targets, comparison of previous years results
and industry bench mark.
Financial key performance indicators
Deposits
The
The
Through ATM
As
Changes
with Basel-II
Basel-II is fully effective from 2010 and PBL has
complied with respect to credit risk management, its
supervision and establishment of effective internal
control. The establishment of effective control requires
more investment in technology and operating expenses
are likely to increase. The rating of the borrowers is
being done. Basel-III is yet to be implemented in
Bangladesh but the bank has been in the process for
mind set-up to prepare for the new accord.
Volatility in equity market
The Bangladesh Securities and Exchange
Commission and the stock exchanges improved their
supervisory role but the equity market is still volatile.
The recession fear also added to the volatility. If
volatility continues it is likely to affect the performance
of the bank.
Compliance
Changes
in market conditions
Changes in market conditions particularly interest
rates on deposits and volatility in foreign exchange
market is likely to affect the performance of the bank.
Depositors are becoming increasingly price sensitive
and any unilateral upward change by a bank will exert
pressure on interest rate structure of the banking
sector. It is feared that wage earners remittances may
decline due to fall in job opportunity in international
market. Unless offset by export performances, there
may be pressure in the foreign exchange market.
The risk of litigation
In the ordinary course of business, legal actions,
claims by and against the bank may arise. The
outcome of such litigation may affect the financial
performance of the bank.
Success of strategies
PBL is proceeding with its strategic plan and its successful
implementation is very important for its financial
performance. Major deviation due to external and internal
factors will affect the performance of the bank.
Operational risk
Operational risk is inherent to all businesses more so
when the operation is technology based. PBL is now
using its core banking software Temenos T24, but
that requires other hardware and software support.
Although all risk mitigation techniques is taken but it
is not certain that there may not be any major failure in
the operating system arising from error, fraud etc. This
type of failure may impact the performance of the bank.
Management Teams
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Risk Review
Maintaining discipline in Risk Management
Diversified
Portfolio
Strong Liquidity
Position
Robust Risk
Governance
Structure &
Dedicated
Teamwork
Risk
Return
Risk Management
Risk is the probability that an investments actual return
will be different than expected which includes the
possibility of losing partial or full of the original investment.
Risk is an integral part of the banking business and
PBLs aim is to deliver superior shareholders value
by achieving an appropriate trade off between risk and
returns. In banking arena, key risks include credit, market,
operational, liquidity, reputation risk and other risks like
strategic risk, concentration risk, compliance risk etc. The
risk management strategy of PBL is based on a clear
understanding of various risks, disciplined risk assessment
and measurement procedures and continuous monitoring.
The risk management policy of the bank operates under
5 broad principles:
Oversight by the Board / Executive Committee. Board
approves policies and processes of risk management
which is recommended by the top management and
Executive Committee approves the credit proposals
submitted by the top management;
Audit Committee of the Board reviews the internal audit
reports of the bank and risk management covering
credit risk, operational risk including money laundering
risk, market risk and liquidity risk;
Dedicated independent Risk Management Units
viz. Credit Risk Management Department, Credit
Principal Uncertainties
Risk
Description
Mitigants
Changes in
regulations
and laws
Risk Management
Risk Management Process
PBLs risk management process is based on a clear
understanding of various risks, disciplined risk assessment
and measurement procedures and continuous monitoring.
The policies and procedures established for this purpose
are continuously benchmarked with international best
practices. The Board of Directors has oversight on all the
risks assumed by the bank. Specific Committees have
been constituted to facilitate focused oversight of various
risks. Risk management process in PBL consists of:
A. Identification;
B. Measurement;
C. Aggregation;
D. Planning and controlling;
E. Monitoring.
A. Identification: A banks risks have to be identified
before they can be measured and managed. Typically
PBL distinguishes the following risk categories:
Credit risk;
Market risk;
Operational risk;
Liquidity risk;
Reputation risk;
Islamic banking risk.
Balancing Risk
and Return
Responsibility
Accountability
Anticipation
Competitive
advantage
an
appropriate
Credit
Risk
CREDIT RISK
Business
Industry Risk
Financial Risk
Management
Risk
Leverage
Size of
Business
Experience
Security
Coverage
Liqudity
Age of
Business
Succession
Collateral
Coverage
Profitability
Business
Outlook
Team Work
Support
Coverage
Industry
Growth
Relationship
Risk
Security Risk
Account
Conduct
Utilization
of Limit
Compliance of
Coverants/
Condition
Personal
Deposits
Market
Competiton
Barriers to
Business
Risk Management
Risk
Sales
Acquisition/
Credit-specific
Customer
Collect and
Review Data
Risk Analysis
Credit Review
Collateral and
Risk assessment
Processing
Documentation
Approval
Implementation
of Credit Decision
Credit approval process in PBL sub-divided into a large number of individual process steps
The bank has a clearly-established process in place for
approving new credits as well as the extension of existing
credits. A thorough credit risk assessment is done before
granting loans. The Credit Risk Assessment includes
borrower risk analysis, industry risk analysis, historical
financial analysis, projected financial performance, the
conduct of the account, and security against the proposed
loan. The assessment originates from relationship
manager / account officer and is approved by Credit
Committee at Head Office. The Credit Committee under
delegated authority approves the credit proposals.
Risk Management
Market Risk
Market Risk is the risk of loss in positions arising from
movements in market prices. Market risks include:
change.
price of a fixed rate bond will fall, and vice versa. Interest
term rates are normally long term rates and banks earn
short term rates can shift quickly which can cause erratic
Equity Risk
Equity risk is defined as losses due to changes in market
price of equity held. To measure and identify the risk, mark
to market valuations of the share investment portfolios
are done. Mark to market valuation is done against a
predetermined limit. At the time of investment, following
factors are taken into consideration:
of investment
of the securities
Liquidity of the securities
Reliability of earnings
Capital appreciation
Risk factors
Implication of taxes
Security
Fundamentals
Risk Management
implicit
standards
applicable
to
their
Bangladesh
Bank Rating
Grade
hacking etc.
BB Grade 1
BB Grade 2
Borrowers Rating
Borrower rating is the offshoot of banks capital adequacy
Equivalent
Rating of
CRISL
Equivalent
Rating of
CRAB
AAA
AAA
AA+, AA, AA1, AA2,
AAAA3
BB Grade 3 A+, A, A- A1, A2, A3
BBB+,
BBB1,
BB Grade 4
BBB, BBB-,
BBB2,
BB+, BB, BBB3, BB1,
BBBB2, BB3
BB Grade 5 B+, B, B- B1, B2, B3
Total
No. of
% of Total
Rated
rated
Customers
Customers
of PBL
05
2.22%
42
18.67%
77
99
34.22%
44.00%
02
225
0.89%
100%
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 events.
Stress testing for credit risk assesses the impact of
increase in the level of non-performing loans (NPLs) of
Risk Management
the banks. This involves several shocking events. Each
shocking event contains Minor, Moderate and Major
Levels of shock.
Performing loan directly downgraded to B/L- Sectoral
Concentration 1: It is a measure of the concentration risk
20,000,088
5,927,202
5,033,160
132,751,323
3,376,263
2,641,429
13,677,828,714
JPY
CHF
CAD
AUD
SGD
SAR
SEK
Total
* Core Capital is Tk
83,157,945
20,510,699,935
13,016,480,060
104,378,880
81,964
19,477,001
231,644,468
241,936,083
EUR
GBP
12,660,897,747
Liabilities In FCY
Assets In FCY
661,348,654
2,641,429
3,376,263
28,372,443
5,033,160
(81,964)
5,927,202
20,000,088
63,680,944
10,291,615
522,107,474
3=1-2
13,183,005,221
USD
Currency
as on 31.12.2012
Liabilities In
FCY
6=4-5
661,348,654
2,641,429
3,376,263
28,372,443
5,033,160
(81,964)
5,927,202
20,000,088
63,680,944
10,291,615
522,107,474
7=3+6
Overall Net
Position
3.22%
Overall Net
Position /
Core Capital
1.00%
4,933,932.35
27,343,884.83
2.05%
10,063,866,116.05
8,062,882,439.49
2,000,983,676.56
11,089,464,401.35
in Bangladesh Taka
In Bangladesh Taka
1.00%
19,393,248.49
22,409,952.47
1.68%
Over 6 month to up to 9
month
15,565,537,762.57
7,700,498,098.55
7,865,039,664.02
9,088,480,724.79
1.00%
9,382,171.15
3,016,703.99
0.23%
Over 3 month to up to 6
month
21,149,560,462.16
17,344,568,828.28
3,804,991,633.88
1,223,441,060.77
Assets In FCY
1.00%
(6,365,467.17)
(6,365,467.17)
-0.48%
76,121,173,045.52
78,702,723,618.63
(2,581,550,573.11)
(2,581,550,573.11)
1- 90 days
Particulars
Market Discipline
Disclosures on Risk Based Capital (Basel-II)
1. Scope of Application
Qualitative a)
disclosure
b)
Prime Bank Limited has 5 (Five) subsidiaries viz. (i) Prime Bank
Investment limited, (ii) Prime Bank Securities Limited, (iii) Prime
Exchange Co. Pte. Limited, Singapore, (iv) PBL Exchange (UK)
Limited and (v) PBL Finance (Hong Kong) Limited.
A brief description of the Bank and its subsidiaries are given
below:
Prime Bank Limited
Quantitative d)
disclosure
Not applicable
Not applicable
2. Capital Structure
Qualitative
disclosure
Quantitative
disclosure
a)
b)
Solo
Consolidated
Taka in Million
9,357.71
9,357.71
2,241.23
2,241.23
c)
III.
Statutory reserve
IV.
General reserve
V.
Retained earnings
VI. Minority interest in subsidiaries
VII. Non-cumulative irredeemable preference shares
VIII. Dividend equalization account
Sub-Total (A)
The total amount of Tier 2 and Tier 3 capital (B)
6,839.53
2,072.23
20,510.70
5,240.80
6,839.53
2,225.19
0.00
20,663.66
5,252.00
d)
e)
25,751.50
25,915.60
a)
Quantitative
disclosure
Particulars
b)
c)
d)
e)
Solo
Consolidated
Taka in Million
18,080.62
18,011.38
79.65%
79.73%
-
335.85
1,817.50
20,234.00
561.91
1,936.98
20,510.30
202,339.80
205,102.70
12.73%
12.64%
Tier-1 CAR
10.14%
10.08%
Tier-2 CAR
2.59%
2.56%
4. Credit Risk:
Qualitative
disclosure
a)
i) Definitions of past With a view to strengthening credit discipline and bring classification
due and impaired (for and provisioning regulation in line with international standard, a
accounting purposes);
phasewise program for classification and provisioning was undertaken
by the Bank as per Bangladesh Bank circulars issued from time to
time. In this regard, all the loans and advances are grouped into four
categories for the purpose of classification, namely (i) Continuous
Loan, (ii) Demand Loan, (iii) Fixed Term Loan and (iv) Short-term
Agricultural and Micro Credit. They are classified as follow:
Continuous & Demand Loan are classified as:
Sub-standard- if it is past due/overdue for 03(three) months or
beyond but less than 06 (six) months;
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.
Rate
1%
1%
2%
2%
5%
5%
b)
Total gross credit risk Total gross credit risk exposures broken down by major types of credit
exposures broken down exposure of the Bank:
by major types of credit
Particulars
Taka in Million
exposure.
Secured Overdraft/Quard Against TDR
38,485.35
Cash Credit/Mudaraba
22,797.52
Loan (General)
30,396.29
House Building Loan
3,615.48
Loan Against Trust Receipts (LTR)
17,724.67
Payment Against Documents (PAD)
679.99
Retail Loan
11,303.24
Lease Finance/Izara
8,186.01
Credit Card
915.41
SME Loan
988.95
Hire Purchase
8,118.56
Other Loans & Advances
10,229.25
Bill purchased/discounted-Inland
5,499.98
Bill purchased/discounted-Foreign
1,949.16
Total
160,889.85
c)
117,138.25
25,060.28
5,214.20
4,510.33
150.52
1,993.48
1,020.74
155,087.80
3,866.63
1,014.28
121.04
487.63
312.47
5,802.05
160,889.85
d)
Industry or counterparty
type
distribution
of
exposures, broken down
by major types of credit
exposure
e)
81,767.70
Residual
contractual Residual contractual maturity break down of the whole portfolios,
maturity
breakdown broken down by major types of credit exposure of the Bank:
of the whole portfolio,
Particulars
Taka in Million
broken down by major
Repayable
on
Demand
types of credit exposure.
Up to 1 month
Over 1 month but not more than 3 months
Over 3 months but not more than 1 year
Over 1 year but not more than 5 years
Over 5 years
Total
f)
36,933.56
34,024.06
44,801.02
42,229.23
2,901.98
160,889.85
499.46
2,137.72
3,528.87
2.45
6,168.50
ii) Specific and general Specific and general provisions were made on the amount of classified
provisions; and
and unclassified loans and advances/investments, off-balance sheet
exposures and off-shore banking units, interest on receivable,
diminution in value of investment and other assets-suspense of the
Bank according to the Bangladesh Bank guidelines.
Particulars
Taka in Million
Provision on classified loans and advances/investments
1,949.08
Provision on unclassified loans and advances/investments
1,964.67
Provision on Off-balance sheet exposures
1,080.00
Provision for Off-shore Banking Units
60.50
Provision for interest receivable on loans & advances/investments
9.52
Provision for other assets
247.11
Provision for diminution in value of investments
43.80
Total
5,354.68
of
Particulars
Non Opening balance
Assets Addition/adjustment during the year
Closing balance
Particulars
Movement of specific Opening balance
provisions for NPAs.
Provisions made during the period
Write-off
Write-back of excess provisions
Closing Balance
Taka in Million
1,908.25
4,260.25
6,168.50
Taka in Million
778.23
1,490.00
(404.20)
85.05
1,949.08
a)
The general qualitative disclosure requirement with respect to equity risk, including:
Differentiation between holdings
on which capital gains are expected
and those taken under other
objectives including for relationship
and strategic reasons; and
Solo
Qualitative
disclosure
Consolidated
Taka in Million
b)
c)
d)
e)
At cost
At market
value
294.30
250.50
At cost
At market
value
1,770.90
1,380.80
11.24
25.28
(43.80)
(390.10)
Capital requirements broken down by appropriate equity groupings, consistent with the banks
methodology, as well as the aggregate amounts and the type of equity investments subject to
any supervisory provisions regarding regulatory capital requirements (10% on market value).
Specific Market Risk
25.05
138.08
25.05
138.08
a)
Interest Rate Risk Analysis (for 1% change in the market rate of interest)
Quantitative b)
disclosure
The
increase
(decline) in earnings
or
economic
value (or relevant
measure
used
by
management)
for
upward
and
downward
rate
shocks
according
to
managements
method
for
measuring IRRBB,
broken
down
by currency (as
relevant).
Particulars
1-90
days
76,121
78,703
(2,582)
(2,582)
1.00%
Over 3
Over 6
months
months
to upto 6
to upto 9
months
months
Taka in Million
21,150
15,566
17,345
7,701
3,805
7,865
1,223
9,088
1.00%
1.00%
Over 9
months
to upto 1
year
10,064
8,063
2,001
11,089
1.00%
(6,365)
9,382
19,393
4,934
(6,365)
3,017
22,410
27,344
(0.48%)
0.23%
1.68%
2.05%
7. Market Risk
Qualitative
disclosure
a)
i) Views of Board of
Directors (BOD) on
trading/ investment
activities.
Market risk is the possibility of losses of assets in balance sheet and offbalance sheet positions arising out of volatility in market variables i.e.,
interest rate, exchange rate and price. Allocation of capital is required in
respect of the exposure to risks deriving from changes in interest rates
and equity prices in the banks trading book, in respect of exposure to risks
deriving from changes in foreign exchange rates and commodity price in the
overall banking activity. The total capital requirement for banks against their
market risk shall be the sum of capital charges against:
i. Interest rate risk
ii. Equity position risk
iii. Foreign exchange (including gold) position risk throughout the banks
balance sheet and
iv. Commodity risk.
iii)
Market
Risk Treasury Division manages the market risk and ALCO monitors the activities
Management system. of treasury Division in managing such risk.
iv)
Policies
and
processes
for
mitigating
market
risk.
To mitigate the several market risks the bank formed Asset Liability
Management Committee (ALCO) who monitors the Treasury Divisions
activities to minimize the market risk. ALCO is primarily responsible for
establishing the market risk management and asset liability management
of the Bank, procedures thereof, implementing core risk management
framework issued by the regulator, best risk management practices followed
by globally and ensuring that internal parameters, procedures, practices/
polices and risk management prudential limits are adhere to.
The Treasury Division are taking following measures to minimize the several
market risks:
i) Foreign exchange risk management: it is the risk that the bank may
suffer losses as a result of adverse exchange rate movement during a period
in which it has an open position in an individual foreign currency. This risk
measured and monitored by the Treasury Division. To evaluate the extent of
foreign exchange risk, a liquidity Gap report prepare for each currency.
ii) Equity Risk: Equity risk is defined as losses due to changes in market price
of the equity held. To measure and identify the risk, mark to market valuation
to the share investment portfolios are done. Mark to market valuation is done
against a predetermined limit. At the time of investment, following factors are
taken into consideration:
a)
b)
c)
d)
e)
f)
g)
Quantitative
disclosure
Security of Investment
Fundamentals of securities
Liquidity of securities
Reliability of securities
Capital appreciation
Risk factors and
Implication of taxes etc.
Solo
Consolidated
Taka in Million
219.60
219.61
50.10
276.20
66.15
66.10
335.85
561.91
8. Operational Risk
Qualitative
disclosure
a) i) Views of BOD on Operational risk is defined as the risk of loss resulting from inadequate or failed
system to reduce internal processes, people and systems or from external events. This definition
Operational Risk includes legal risk but excludes strategic and reputation risk. It is inherent in every
business organization and covers a wide spectrum of issues. The Board of Director
(BOD) of the Bank and its Management firmly believe that this risk through a
control based environment in which processes see documented, authorization as
independent and transactions are reconciled and monitored. This is supported by
an independent program of periodic reviews undertaken by internal audit, and by
monitoring external operational risk events, which ensure that the group stays in line
which industry best practice and takes account or lessons learned from publicized
operational failures within the financial services industry.
The BOD has also modified its operational risk management process by issuing
a high level standard like SOP, supplemented by more detailed formal guidance.
This explains how the bank manages operational risk by identifying, assessing,
monitoring, controlling and mitigating the risk, rectifying operational risk events,
and implementing any additional procedures required for compliance with local
regulatory requirements.
The Bank maintains and tests contingency facilities to support operations in the event
of disasters. Additional reviews and tests are conducted in the event that any branch of
the bank is affected by a business disruption event, to incorporate lessons learned in
the operational recovery from those circumstances. Plans have been prepared for the
continued operation of the banks business, with reduced staffing levels.
Human Resources
Organizations need to effectively manage their human resources to get the
maximum contribution from their employees. PBL always focuses on helping its
people to grow, enabling individuals to make a difference and win their goals.
HR Division of PBL always strives to ensure a great place to work by creating an
attractive, inclusive and safe environment that rewards success and encourages
employees to take control of their personal development.
At the core of the HR strategy is managing an organizational culture where
employees enjoy working with pride and are strongly motivated to gain and
maintain professional excellence to convert the human resource into human
capital. Ensuring such things in the bank is a key driver of productivity and
performance, which creates the foundation of banks performance culture. HR
Division persuades and focuses on the behaviors that bring out the very best
from every employee, assessing their performance not just on results but on
how those results were achieved. To further embed these behaviors PBL has a
remuneration program in place, carefully designed to encourage its employees to
live its values every day. The bank has always taken a view that its remuneration
policies should support and drive its business strategy and reinforce its values.
PBL believes these are sound and aligned to external best practice standards
with risk-based and robust governance structures. Banks annual performance
bonuses are discretionary and are delivered in a combination of cash and deferred
shares. They are set with regard to an assessment of risk and other factors such
as achievement of our management agenda, risk management and economic
backdrop, as well as profit. PBL accentuates on shared working, creativity and
innovation among its employees.
PBLs brand pledges, a bank with a difference, sets out its deep and lasting commitment
to people, to the communities in which we live and work, and to building a sustainable
and responsible business in the long run in a unique way. And it is this commitment
that not only sets us apart as a bank but also as an employer.
By developing strengths of the human capital, valuing their unique perspectives
and enabling them to make a difference to our success, PBL will help them to fulfill
their latent talent. Getting the best from this opportunity will rely on them sharing
their commitment to delivering performance for its shareholders, building lasting
relationships while demonstrating a passion for helping it do better- for customers
and society.
With 2,544 people, operating through 130 branches, the bank prides itself on
being a truly peerless organization, combining the expertise and endeavor of
experienced and fresh talents.
HR Focus
PBLs distinctive customs and values contributes an enormous function in its
success, they are at the heart of who we are and what we strive for. PBL
distinguishes itself by being a strengths-based organization. The bank focuses on
understanding and leveraging its employees' strengths to ensure they are in the
true roles for them to truly excel.
PBL believes that the human capital is one of the crucial elements which influence
the rhythm, evolution, directions, quality and activity development in the bank.
The HR Division has been relentlessly working to help the bank in achieving its
goal of being the best commercial Bank in Bangladesh in terms of efficiency,
capital adequacy, asset quality, sound management and profitability having
strong liquidity. The Division endeavors for managing an organizational culture
where employees enjoy working with pride and are strongly motivated to gain and
maintain professional excellence. It also focuses on the respect for the employees,
the enforcement of moral and ethical principles.
HR Success:
Major achievement like:
Revision of car policy, gratuity policy, mobile phone policy and reward &
recognition policy
Manpower Planning
Organogram Restructuring
iv)
Policies
and processes
for mitigating
operational
risk.
Prime Bank limited (PBL) has formed a separate Risk Management Division
under Chief Risk Officer to ensure following things:
Designing of organizational structure by clearly defining roles and responsibilities
of individuals involved in risk taking as well as managing it;
Formulation of overall risk assessment and management policies, methodologies,
guidelines and procedures for risk identification, risk measurement, risk monitoring,
defining an acceptable level of risk, mitigation of all the core risks in line with their
respective guidelines provided by Bangladesh Bank;
Reviewing and updating all risks on systematic basis as necessary at least
annually, preferably twice a year, ensuring that adequate controls exist and that
the related returns reflect these risks and the capital allocated to support them.
The main risk areas will be (i) Balance sheet Risk Management, (ii) Credit Risk,
(iii) Foreign Exchange Risk, (iv) Internal Control and Compliance Risk, (v) Money
Laundering Risk and (vi) IT Risk. The following risks have also to be reviewed:
Operational Risk
Market Risk
Liquidity Risk
Reputation risk
Insurance Risk
Sustainability Risk
Setting the portfolio objectives and tolerance limits/parameters for each of the risks;
Formulation of strategies and different models in consistency with risk management
policy based on IT Policy and in house IT support which can measure, monitor and
maintain acceptable risk levels of the bank;
Development of information systems/MIS inflow and data management
capabilities to support the risk management functions of the bank.
Ensure compliance with the core risks management guidelines at the department
level, and at the desk level;
The unit will work under banks organizational structure and suggest to the CEO
to take appropriate measures to overcome any existing and potential financial
crisis;
Analysis of self resilience capability of the bank;
Initiation to measure different market conditions, vulnerability in investing in
different sectors;
The unit will also work for substantiality of capital to absorb the associated risk
in banking operation.
Activities undertaken by Risk Management Division since inception and recent
approaches
Risk Management Division of PBL is currently arranging monthly meeting on
various issues to determine strategies in consistency with risk management policy,
which can measure, monitor, and maintain acceptable risk level of the bank.
Minutes of each meeting is submitted to the Bangladesh Bank on monthly basis;
Besides, Risk Management Paper has also been prepared on the basis of 03
months monthly minutes addressing different areas of risk and their mitigating
tools & techniques guided by the members of Risk Management Division;
In order to perform the risk management function smoothly, RMD had invited all
the Operational Divisions vide letter to the Head of respective Divisions to form
an internal committee along with defined duties of concerned officials. It is to be
noted here that due to continuous and successful persuasion, all the Operational
Divisions have formulated and established internal risk management committees.
Stress Testing in PBL:
Risk Management Division (RMD) of PBL has prepared a stress testing model
in line with the Bangladesh Banks guideline which initially focused on Simple
Sensitivity and Scenario Analysis on the following five risk factors:
Interest rate;
Forced sale value of collateral;
Non-performing loans (NPLs);
Share prices; and
Foreign exchange rate.
The stress testing based on the financial performance of the bank as on
December 31, 2012 shows that when all the shocks are considered together,
Capital Adequacy Ratio (CAR) of PBL will be 10.60%, 6.74% and 1.78% in minor,
moderate and major levels of shock respectively. 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.
The Banks operating in Bangladesh shall compute the capital requirements for
operational risk under the Basic Indicator Approach (BIA). Under BIA, the capital
charge for operational risk is a fixed percentage, denoted by (alpha) of average
positive annual gross income of the bank over the past three years. Figures for
any year in which annual gross income is negative or zero, should be excluded
from both the numerator and denominator when calculating the average. The
capital charge may be expressed as follows:
K = [(GI 1 + GI2 + GI3) ]/n
WhereK = the capital charge under the Basic Indicator Approach
GI = only positive annual gross income over the previous three years (i.e., negative
or zero gross income if any shall be excluded)
= 15 percent
n = number of the previous three years for which gross income is positive.
Gross income: Gross Income (GI) is defined as Net Interest Income plus Net
non-Interest Income. It is intended that this measure should:
i). be gross of any provisions;
ii). be gross of operating expenses, including
fees paid to outsourcing
service providers;
iii). exclude realized profits/losses from the sale of securities held to maturity in
the banking book;
iv). exclude extraordinary or irregular items;
v.) exclude income derived from insurance.
Quantitative
disclosure
Particulars
b) The capital requirement for operational risk
Solo Basis
Consolidated
Taka in Million
1,817.50
1,936.98
Shareholders' Information
Interest income
Profit before provision and tax
Provision for loans and assets
Profit after provision before tax
Tax including deferred tax
Profit after tax
2012
Taka in
million
22,822
8,551
3,216
5,335
2,636
2,699
2011
Taka in
million
16,709
7,427
661
6,766
3,132
3,634
20,787
182,053
160,890
49,670
4,363
236,833
Ratios (%)
Non performing loans
Group
36.58
15.13
386.50
-21.15
-15.83
-25.73
2012
Taka in
million
23,808
8,840
3,324
5,516
2,815
2,700
2011
Taka in
million
17,547
8,137
1,051
7,086
3,397
3,689
19,095
159,816
138,848
39,172
3,975
199,950
8.86
13.91
15.87
26.80
9.76
18.45
20,962
181,962
165,042
48,003
4,420
238,169
19,263
159,812
141,802
37,516
4,033
200,996
8.82
13.86
16.39
27.95
9.58
18.49
35.54
12.73
32.96
12.45
2.58
0.28
35.54
12.64
32.96
12.46
2.58
0.18
2.88
20.00
22.21
3.88
30.00
24.49
-25.77
-10.00
-9.28
2.89
20.00
22.40
3.94
30.00
24.70
-26.65
-10.00
-9.32
3.83
13.53
1.24
1.37
20.19
2.05
2.46
-6.66
-0.81
3.74
13.43
1.23
1.35
20.09
2.07
2.39
-6.66
-0.84
Change
%
20.97%
1.84%
8.73%
3.95%
35.68
8.64
216.29
-22.16
-17.12
-26.80
5.62%
76.87%
Change
%
7.52%
67.93%
1.73%
4.83%
Paid-up Capital
Borrowings
Other Liabilities
Deposit
Investments
Liquid Assets
Other Assets
Fixed Assets
20.15%
1.86%
69.30%
7.52%
1.18%
Investments
Liquid Assets
Other Assets
Fixed Assets
Financial Highlights-PBL
Profit Before Tax
Gross Revenue
(Taka in million)
2011
2012
Gross revenue
Operating income
Profit after tax
Total capital
Total deposits
Total loans & advances
Total assets
No. of deposits accounts
No. of loans & advances accounts
Return on assets (%)
Return on equity (%)
Statury liquidity ratio (%)
Capital adequacy ratio (%)
No. of employees
No. of branches
No. of SME branches/centers
Rating
Long -term
Short-term
5,335
6,766
30,902
24,207
(Taka in million)
2011
2012
2012
30,902
13,492
2,699
2,575
182,053
160,890
236,833
1,034,120
55,709
1.24
13.53
35.54
12.73
Taka in million
2011
24,207
11,559
3,634
24,069
159,816
138,848
199,950
830,544
58,192
2.05
20.19
32.96
12.45
2,544
113
17
2,292
102
17
AA+
ST-1
AA+
ST-1
Annual Report 2012 137
Shareholders Information
Interest expenses
Investment income
2008
2009
Taka in million
2010
9,096
10,856
12,147
1,970
2,430
4,323
7,126
1,744
8,426
3,372
7,824
2,632
2011
16,709
12,648
4,061
4,157
1,437
1,749
2,262
2,689
Operating income
5,778
8,196
9,795
11,559
3,847
5,289
6,176
7,427
Operating expenses
Balance Sheet
Authorized capital
Paid-up capital
Long-term liabilities
628
1,931
1,384
2,463
1,232
644
2,907
700
4,589
1,805
579
3,618
540
5,636
2,535
652
4,132
661
6,766
3,132
2012
22,822
17,410
5,411
4,633
2,429
1,018
13,492
4,941
8,551
3,216
5,335
2,636
1,232
2,784
3,101
3,634
2,699
10,000
10,000
10,000
10,000
25,000
2,844
6,697
3,555
11,745
5,776
16,908
7,798
19,095
9,358
20,787
88,021
106,956
124,574
159,816
182,053
75,156
89,252
116,057
138,848
160,890
31,044
23,103
1,375
38,209
19,934
1,573
47,918
20,484
1,695
63,379
39,172
3,975
84,827
49,670
4,363
Earning assets
100,261
109,905
137,577
179,537
212,204
Total assets
110,437
124,806
154,342
199,950
236,833
Total liabilities
Current ratio
9,962
103,740
1.14
3,435
113,061
1.05
7,349
137,434
1.09
2,262
180,856
1.02
2,735
216,046
1.02
Gearing ratio
83.84
80.56
76.98
77.88
80.97
19.86
28.50
26.00
32.96
35.54
168,532
Quick ratio
Export
Remittance
Guarantee Business
Capital Measures (Consolidated)
Total risk weighted assets
0.93
0.80
0.84
0.78
6.45
10.39
12.30
10.56
91,424
96,452
147,704
174,384
68,550
0.77
9.62
76,097
106,943
133,396
143,612
10,010
13,673
29,000
27,844
29,391
72,253
82,710
183,747
194,380
205,103
22,669
6,265
1,594
26,447
9,057
3,112
28,433
15,791
5,692
36,890
18,744
5,485
42,443
20,664
5,252
7,859
12,168
21,483
24,229
25,916
2.21
3.76
3.09
2.82
2.56
8.67
10.88
10.95
14.71
8.60
11.69
9.64
12.46
10.08
12.64
2008
2009
Taka in million
2010
2011
2012
Credit Quality
Non-performing loans (NPLs)
NPLs to total loans and advances (%)
Provision for unclassified loans
Provision for classified loans
1,323
1,149
1,368
1,908
6,168
1.76
1.29
1.18
1.37
3.83
1,040
1,303
1,463
1,725
1,965
734
631
642
778
1,949
Share Information
Market price per share (Taka)
No. of shares outstanding (Million)
No. of shareholders (actual)
53.98
65.30
94.45
44.50
37.00
284.38
355.47
577.64
779.81
935.77
9,180
10,339
19,748
26,030
23,964
4.33
7.83
5.69
4.70
2.88
Dividend:
25%
40%
40%
30%
20%
Cash
0%
10%
5%
10%
10%
Bonus
25%
30%
35%
20%
10%
27.78
44.44
49.52
40.21
21.82
1.73
1.96
1.42
1.57
1.44
4.63
6.13
4.23
6.74
5.41
15,349
23,212
54,572
34,702
34,624
Market capitalization
23.55
33.04
29.27
24.49
22.21
12.46
8.34
16.60
9.47
12.85
2.28
2.31
3.49
2.56
2.76
2.17
2.72
1.50
2.12
1.60
91.07
89.34
88.66
89.51
89.69
44.77
49.31
55.59
47.75
43.66
2.07
2.07
3.10
2.29
2.48
2.48
2.87
2.89
3.24
3.36
4.05
4.50
4.43
4.19
3.92
Cost-income ratio
33.42
35.47
36.94
35.75
36.62
Credit-deposit ratio
85.38
83.45
93.16
86.88
88.38
8.55
8.41
6.39
8.15
8.75
13.52
13.16
11.76
13.09
15.17
1.30
2.37
2.22
2.05
1.24
20.58
30.19
21.65
20.19
13.53
70
84
94
102
113
Other information
No. of branches
No. of SME branches/centers
Number of ATM
No. of employees
No. of foreign correspondents
14
17
17
29
39
43
81
134
1,551
1,844
2,139
2,292
2,544
518
602
621
644
660
86,530
105,083
123,741
158,557
195,871
95,013
117,622
139,574
177,146
218,392
Average deposits
79,266
97,488
115,765
142,195
170,934
66,420
82,204
102,654
127,452
149,869
5,985
9,221
14,327
18,002
19,941
Average equity
Shareholders Information
2008
13.53
20.58
21.65
30.19
2009
2010
2011
2012
Shareholders Information
Segment Analysis
Profit before Tax
74.02%
15.62%
2.73%
Group
6.76%
0.87%
Conventional Banking
Islamic Banking
Off-shore Banking
Local Subsidiaries (PBIL, PBSL)
Overseas Subsidiaries (Exchange House, Finance Co.)
Operating Revenue
Assets Employed
86.24%
86.64%
7.21%
1.19%
4.15%
1.21%
6.84%
2.13%
3.83%
0.56%
Conventional Banking
Islamic Banking
Off-shore Banking
Local Subsidiaries (PBIL, PBSL)
Overseas Subsidiaries (Exchange House, Finance Co.)
Conventional Banking
Islamic Banking
Off-shore Banking
Local Subsidiaries (PBIL, PBSL)
Overseas Subsidiaries (Exchange House, Finance Co.)
80.14%
16.91%
PBL
2.95%
Conventional Banking
Islamic Banking
Off-shore Banking
Assets Employed
Operating Revenue
7.16%
91.12%
1.26%
Conventional Banking
Islamic Banking
Off-shore Banking
2.22%
7.62%
90.62%
Conventional Banking
Islamic Banking
Off-shore Banking
Number of Shares
2012
2011
379,553,447
317,740,777
188,237,104
163,401,686
35,695,212
14,282,281
5,031,043
6,018,026
327,254,663
278,366,788
935,771,469
779,809,558
% of Shares
2012
2011
40.56%
40.75%
20.12%
20.95%
3.81%
1.83%
0.54%
0.77%
34.97%
35.70%
100%
100%
Mr. M. A. Khaleque
Status
Chairman
Vice Chairman
Vice Chairman
Director
Director
Director
Director
Director
Director
18,983,935
18,720,079
22,150,681
21,644,226
12,409,969
94.69%
20.00%
18,798,231
25,973,071
18,741,962
20.00%
51.02%
10,120,151
18,719,181
84.97%
Director
18,716,670
Director
18,768,111
19,860,746
Director
Director
Change
29,322,129
Director
9,640,093
16,550,622
Closing
Position
Opening
Position
Director
Director
Depositor Director
Depositor Director
Independent
Director
18,716,136
34,563,056
25,283,258
18,736,602
23,478,344
25.31%
9,040,272
18,728,326
107.17%
22,180
26,616
20.00%
98,164,115
349,550,532
256.09%
Shareholders Information
Taka in million
2012
2011
9,358
7,798
Share premium
2,241
2,241
Statutory reserve
6,840
5,773
2,225
2,932
20,664
18,744
1,965
1,725
1,080
940
61
61
21
130
126
126
2,000
2,500
5,252
5,485
25,916
24,229
205,103
194,380
10.08
9.64
2.56
2.82
12.64
12.46
Value added statements for the year ended December 31, 2012
Taka in million
Particulars
2012
2011
30,902
24,207
(19,388)
(14,489)
11,514
9,718
(3,216)
(661)
8,298
9,057
2,685
2,067
2,939
3,693
2,450
2,907
(240)
(58)
Depreciation
278
224
Deferred taxation
186
225
225
390
8,298
9,057
Total
29.53%
-2.89%
3.35%
2.24%
32.36%
35.42%
-0.64%
2.47%
2.48%
40.78%
22.82%
To providers of capital as
dividend & reserve
Retained profit
Deferred taxation
To employees as
salaries & allowances
To Government as income tax
Depreciation
To providers of capital as
dividend & reserve
Retained profit
Deferred taxation
2008
2009
2010
2011
12.64
11.69
12.46
14.71
10.88
To employees as
salaries & allowances
To Government as income tax
Depreciation
2012
Shareholders Information
2012
Shareholders equity
2011
2010
20,787
19,095
16,908
4,082
3,503
2,975
24,869
22,598
19,883
23,734
21,241
17,011
2,699
3,634
3,101
3,216
661
540
(404)
(200)
(257)
5,511
4,095
3,384
13.46%
13.46%
12.26%
3,194
2,859
2,085
2,316
1,237
1,299
87.33%
-4.84%
-24.39%
Taka in million
Maturity analysis
Interest earning assets
Below
1 year
1-5 years
Above
5 years
Total
124,535
57,328
30,341
212,204
9,418
3,320
11,891
24,629
Total assets
133,953
60,648
42,232
236,833
128,321
51,042
23,372
202,735
2,898
6,684
3,729
13,311
131,219
57,726
27,101
216,046
Maturity Gap
2,735
2,921
15,131
20,787
Cumulative Gap
2,735
5,656
20,787
Maintaining liquidity
Payment of dividends
No. of shares
Value in Taka
Taka in million
Market value
935,771,469
37.00
34,624
Book value
935,771,469
22.21
20,787
13,837
1,299
2010
1,237
2011
2012
Shareholders Information
DSE
High
Taka
Low
Taka
CSE
Volume
High
Taka
Low
Taka
Volume
Total
Volume on
DSE & CSE
January12
46.50
36.20
11,608,011
46.50
36.50
796,039
12,404,050
February12
45.50
33.80
13,479,475
45.00
33.70
679,171
14,158,646
March12
43.10
31.00
26,675,605
43.00
31.00
568,272
27,243,877
April12
40.20
34.20
21,113,315
40.00
34.00
565,012
21,678,327
May12
37.70
33.80
9,454,793
37.60
33.00
277,563
9,732,356
June12
36.90
29.70
7,401,326
35.90
27.90
285,594
7,686,920
July12
33.00
29.40
7,647,783
29.50
27.00
364,061
8,011,844
August12
36.40
30.50
9,403,775
35.30
28.10
261,677
9,665,452
September12
38.90
30.90
18,300,174
35.30
28.10
397,944
18,698,118
October12
36.00
32.50
5,544,529
36.20
29.80
143,703
5,688,232
November12
35.00
29.00
3,763,805
35.90
27.50
113,949
3,877,754
December12
38.50
29.50
8,083,481
39.00
28.10
331,471
8,414,952
Market Capitalization
(Taka in million)
54,572
15,349
2008
34,624
34,702
23,212
2009
2010
2011
2012
Audited consolidated results for the 4th quarter ended 31 December 2011
Unaudited consolidated results for the 1st quarter ended 31 March 2012
Unaudited consolidated results for the 2nd quarter and half-year ended 30 June 2012
Unaudited consolidated results for the 3rd quarter ended 30 September 2012
Dividends
Announced on
Announced on
Announced on
Announced on
Stock Dividend
Cash Dividend
Other Information
Exchange controls and other limitations affecting equity security holders
Non-residents can buy and sell PBLs shares and transfer the dividends after complying with Foreign Exchange
Transaction Guidelines 1996 and SEC Rules.
Taxation on shares and dividends
Following is the current deduction of tax at source on dividend income as per current fiscal act:
If the shareholder resident / non-resident Bangladeshi person other than company at the rate of 10 percent
If the shareholder resident (other than Bangladeshi non-resident) person other than company at the rate of 25 percent
Capital gain arising from transfer or sale of Government Securities is tax exempted. Capital gain arising from
transfer or sale of Stocks and Shares of publicly listed companies listed with stock exchanges is taxable at the
rate of at least 10 percent. For non-resident the tax exemption on capital gain shall be allowed if the similar
exemption is allowed in the country of residence of the non-resident
Stock Details
Stock Symbol
Company Code
Listing year
Market category
Electronic share
Market lot
Total number of securities
Particulars
DSE
PRIMEBANK
11116
2000
A
Yes
250
935,771,469
CSE
PBBANK
22013
1999
A
Yes
250
935,771,469
Annual Report 2012 and other information about PBL may be viewed on PBLs website www.primebank.com.bd PBL provides
copies of Annual Reports to the Bangladesh Securities and Exchange Commission, Bangladesh Bank, Dhaka Stock Exchange
and Chittagong Stock Exchange for their reference. Investors may read them at their public reference room or library.
PBL is strongly committed to equitable treatment of every shareholder, whether they are major or minority shareholders, institutional
investors, or foreign shareholders. To ensure equal treatment of all shareholders, the bank created various mechanisms, such as:
Shareholders who are unable to attend the shareholders meeting, the bank provides proxy forms which allow shareholders to specify
their vote on each agenda. The proxy forms, which are in accordance with the standard format, are sent along with the annual report.
The shareholders meetings proceed according to the order of the agenda, without adding new and uninformed agenda, in
order to give the opportunity to shareholders to study the information on the given agenda before making a decision. Moreover,
there are no changes to the important information in the shareholders meeting.
The bank sees the importance of the consideration of transactions which may have conflict of interest or may be connected or
related transactions, and abides by good corporate governance principles, including the rules and regulations of the Bangladesh
Securities and Exchange Commission and the Dhaka Stock Exchange and the Chittagong Stock Exchange transactions, directors,
management and those who are related persons do not participate in the consideration to approve such transactions.
The bank provides a channel for minority shareholders to propose issues deemed important and appropriate to include in the
agenda of the banks annual general meeting of shareholders and to nominate candidates with appropriate knowledge, abilities
and qualifications to be considered for the position of director.
The bank continues to have regular communication with the shareholders through periodic updates of performance and at any
other time when it believes it to be in the best interest of shareholders generally.
Investors Inquiries
Any queries relating to shareholdings for example transfer of shares, changes of name and address, and payment of dividend
should be sent to the following address:
Share Department
Sarker Mansion (8th Floor)
29, Rajuk Avenue, Dhaka-1000
Phone: 9567265/261
Email: info@primebank.com.bd
Customer Care
customers,
especially
personalized
face-to-face
Customer Care
and KIOSK to serve its large customer base. New
Phone Banking
Mobile Banking
Benefits of BACPS
30000
1000000
900000
25000
800000
700000
600000
15000
2011
500000
2012
400000
2011
2012
10000
300000
5000
200000
100000
0
No. of Cheques (Outward)
Outward_Amount (Core)
Inward_Amount (Crore)
Benefits of BEFTN
BEFTN eliminates cheque printing and clearing cost,
eliminates lost and stolen instruments, reduces risk and
fraud, ensures secured and faster payment and saves
time.
No. of EFT requests presented (Outward) and received (Inward) in 2012
OUTWARD
(Amount, Crore)
250
200
80000
150
70000
100
INWARD
(Amount, Crore)
50
60000
OUTWARD
(Requests)
50000
40000
0
JAN-MAR
APR-JUN
JUL-SEPO
CT-DEC
INWARD
(Requests)
30000
20000
10000
0
JAN-MAR
APR-JUN
JUL-SEPO
CT-DEC
Customer Care
foreign remittance is increasing with time dramatically.
Besides, merchant (POS) customers of CARD division
are also getting the payment in their own account (any
bank) without any difficulties.
No. of Outward Request of CFRC & CARD Division in 2011 and 2012
180000
160000
140000
120000
2011
100000
2012
80000
60000
40000
20000
0
No. of Outward Request
(CFRC)
2011
2012
60000
20000
0
Total Amount (Crore),
CFRC
Operations Research
Feasibility Studies for Branch Expansion Program
(BEP) and ATM: To explore potential markets where
the bank can provide its services to contribute to the
economic development of the area, feasibility studies have
been conducted on more than 150 locations all over the
country for new branch expansion and business growth.
To strengthen the alternative delivery of banking services,
feasibility studies for ATM expansion program have been
undertaken all over Bangladesh.
151
130
140
163
81.98
86.18
76.85
2010
PBL BenchmarkC
2010
ompetitors Benchmark
2011
PBL Latest MS
Customer Care
Commodity Market Watch from national and global
perspective on eight commodities;
difference.
Customer Mela
Customer Care
Siddirgonj, Narayangonj. I started a handicraft business in very small scale in 1995 and till
now running the business very successfully.
I contacted different banks for taking loan for expansion of my business but could not
manage anywhere as I am a physically disable business entrepreneur. In this situation,
SME Banking Division of Prime Bank Limited offered me a loan for expansion of my
business. In 2010, I had enjoyed a SME loan of Tk 400,000 from Prime Bank Limited and
successfully paid the entire loan amount with interest in time. Again I have been enjoying
another SME loan of Tk 400,000 from Prime Bank Limited since 2012.
Hogla trees those are grown in the bank of rivers are used as main raw materials of my
business. From those raw materials I make different types of Basket, Paper Box, Flower
Basket, Flower Vase and different types of home decorators. These finished products are
sold in locally as well as in abroad through NGOs.
persons both male and female. This year, profit was more than that of previous year and
became able to improve the life standard of my family. I give special thanks to Prime Bank
Limited who is beside me as a helping friend since 2010 to make easy my way to the
progression of my business.
Customer Services at
Prime Bank
Products
and Services
Products
and Services
Some endeavours are too valuable to be measured financially. Though being able to
improve the opportunities and livelihoods of those in need is priceless, we believe in
empowerment more than aid. Our groundbreaking social programmes enhance the health,
educational opportunities and cultural participation for the marginalised, but more than that,
they lay the foundation for continuous development that extends beyond our beneficiaries.
By contributing to development in Bangladesh in the areas of education, health and more,
Prime Bank Foundation is investing in brighter future.
Prime Bank Foundation has always been playing an imperative role in the social life of Bangladesh throughout its course
of compassionate operation, during which the Foundation has placed its resources and capabilities engaging in a range of
activities that are benefiting its priority target people of the country over the past six years.
Other Activities
In addition to the ongoing core projects mentioned above, Prime Bank Foundation is also involved in numerous other
activities to support pressing social and emergency needs in the country.
Years
Category of Information
2008
2009
2010
2011
2012
Applications Received
2,985
1,753
4,774
3,651
4,371
9,987
2,542
1,478
4,387
3,515
3,979
9,570
170
122
198
196
205
386
108
78
135
135
148
294
62
44
63
61
57
92
86
60
35
15
81
24
Education
Education Support Programme (ESP)
Education is possibly the single most important human development factor needed to develop not only an individual but
vital for the progress of the entire nation. The prospect to pursue higher education is an empowering and life changing
opportunity, and an invaluable tool for effecting social change. The youth of Bangladesh is extremely driven and
hardworking, and can achieve great things if given the chance. Prime Bank Foundations activities in the area of education
emphasise the view that empowerment is much more powerful than aid, and that view is reinforced year after year as the
programme continues to produce inspiring stories of individuals overcoming hardship and achieving success.
Prime Bank Foundations Education
Support Programme (ESP) is a long
term renewable scholarship programme
for underprivileged but meritorious
students from across the country
intended to remove barriers to accessing higher education. Under this
initiative, eligible students receive
monthly stipends that allow them to
pursue under-graduate, Graduate and
post-graduate level studies, giving them
the opportunity to break out of the cycle
of poverty, increase their sense of
self-worth, and fulfill their potential.
Rather than providing one time awards
for good performance, the programme
supports students in completing their
scholarly aspirations in order to allow
them to make real, meaningful and
lasting changes in their lives.Typical
applicants come from very humble
backgrounds, with household incomes
barely enough to meet their basic
needs. Beneficiaries of the Education
Support Programme develop skills that
make them eligible for better employment, benefiting not just themselves, but
allowing them to support families as
400
Distribution of Awardees
by Batch (2007-2012)
350
(112) 9%
300
(196) 15%
250
200
(15) 1%
198
170
196
205
(954) 75%
150
122
100
50
2008
2009
2010
2011
2012
eivei,
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PBF ID: 08-2-2-093
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PBF-ID: 07-2-2-1
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Shilpy Begum
PBF-ID: 07-2-2-169
Officer
BDS-71 News Agency
11
22
Thakurgaon
Lalmonirhat
Nilfamari
14
19
38
Kurigram
Rangpur
Dinajpur
No ESP Awardees
55
Gaibandha
10
35
Jaipurhat
17
Sherpur
22
Naogaon
Rajshahi
Mymensingh
41
28
Nator
Sirajganj
14
Gazipur
Pabna
Chuadanga
24
Manikganj
20
Jhinaidaha
14
11
Narail
Madaripur
41
Shariatpur
Gopalganj
26
36
Pirojpur
Bagerhat
Khulna
16
2
Khagrachari
Lakshmipur
27
Comilla
Chandpur
5
Barisal
28
12
59
Munshiganj
13
Shatkhira
4
Faridpur
40
Maulvibazar
Brahmanbaria
Narayanganj
Dhaka
12
Magura
Jessore
26
Narsingdi
Rajbari
5
Habiganj
25
Kushtia
2
Meherpur
16
Kishoreganj
Tangail
34
32
13
Sylhet
38
63
19
17
Sunamganj
Netrokona
Jamalpur
Bogra
Chapai
Nawabganj
11
22
14
Noakhali
Feni
23
Rangamati
Jhalokati
77
Bhola
Patuakhali
14
13
11
Chittagong
Borguna
1
Bandarban
Cox's Bazar
Sl.
l #
l.
1
2
3
4
5
6
7
Divi
vis
vi
isio
i n
Barisal
Chittagong
Dhaka
Khulna
Rajshahi
Rangpur
Sylhet
Total
Awa
w rd
wa
rde
dees
98
266
259
185
230
202
37
1277
15
Prime Campus-Uttara is a 2008 CSR initiative of Prime Bank Foundation designed to provide quality English medium schooling at
affordable rates. It is a uniquely organic project with immense growth
potential, small in its inception, but enormous when fully developed.
We might compare it to the palm
and banyan tree. The first four
and a half years have already
shown both
trees characteristic growth patterns-upward like
the palm and outward like the
banyan.
Class
Class
Il
2011
2010
as
Cl
VI
ss
la
lV
as
IIl
Cl
Class
2013 2014
2012
ss
Cla
VII
2016
s
Cla
2017
2009
KG
Nursery
2018
2008
2019
Uttara
III
sV
2015
Class IX
ve
Le
O-
Class
el
ev
L
A-
2013
KG
Mirpu
r
2012
ry
rse
Nu
Prime Campus
annual report 2012 183
Later, Graduation and Post-graduation courses will be incorporated in the near future step by step. In addition to that
special certificate courses will be provided for different professional/service-holders or non-professional by PBNI to popularise the nursing profession in the different strata of the community as a part of social movement.
Eventually, PBNI is established to build a bright future of new generation as an efficient manpower regarding nursing
profession in the country and aboard.
Health
Prime Bank Eye Hospital (PBEH)
PBEH
Prime Bank Eye Hospital (PBEH) was established to make high quality eye care
accessible to all, regardless of their financial condition. With eye-disease
pervasive across Bangladesh, countless poor and needy people throughout the
country suffer and lose their livelihoods to conditions that are readily treatable
and often preventable. Though the hallmark of PBEH is to provide treatment at
prices that everyone can afford, with many receiving free support, a core
principle of hospital is its financial self-sufficiency, based on successful social
business models. This is achieved through high quality, high volume care based
on a well-organised system. Aiming to meet the goals defined by the Vision
2020 initiative of the World Health Organisation, PBEH not only provides
treatment and surgery, but is also actively involved in raising awareness of and
generating demand for eye health in order to promote the prevention and control
of avoidable blindness across the country.
checked and installed under supervision of renowned ophthalmologists. All other work, including hospital renovation and
human resource recruitment, was completed by the end of 2011, realising the goal of establishing PBEH as a cutting-edge
eye care centre. Finally, a distinguished team from AECS (comprised of Mr. R. D Thulasiraj, Mr. Nagarajan, Dr. AsimSil,
and Ms. Sashi Priya) visited the site on December 15, 2011, to oversee the progress and ensure every standard was
fulfilled.
2012 was a landmark year for Prime Bank Eye Hospital, not just because of its launch, but also the incredible response it
saw. PBEH was inaugurated on January 2012, at a ceremony attended by
numerous distinguished guests, including the Governor of Bangladesh
Bank, Board of Directors of Prime Bank Limited (PBL), and many others.
The hospital began actual operations on the 22nd of January 2012. In the
days since, several thousand beneficiaries have passed through PBEH,
where they have received life-changing treatment and care.
Promoting the newly established hospital was a key priority, and PBEH has
been proactively addressing this challenge with publicity campaigns in print
media (newspapers and magazines), PBL ATM booth branding, brochure
distribution, and other activities. The response has been remarkable, with
the number of treatment seekers increasing day by day.
In addition to operating its fixed facility in Dhaka, the PBEH project also has
a mission to promote early detection and prevention, and outreach to those
outside the capital, in order to address the pressing needs for eye care
across the country. In 2012, PBEH began implementing outreach camps
where cataract patients are identified, and later provided with surgery at
minimal cost.
One of PBEHs fundamental values is continuous progress and development. Accordingly, the Vision Building & Strategic PlanningWorkshop was
planned during an AECS team visit, for the purpose of defining longer term
goals and action plans. The workshop was held in May 2012 at LAICO,
AECS India. Various goals and strategies were discussed, covering
self-sustainability, conducting of outreach camps, recruitment of skilled HR,
promotion, and much more.
After Surgery
Some complex
operations
performed
at Prime Bank
Eye Hospital
Before Surgery
In 2012, PBEH conducted 11 outreach camps, providing ophthalmic examinations to 2,750 patients. Among them, 93
patients were brought to the base hospital (PBEH) for surgery. About 700 patients received refraction services with
spectacles being dispensed to around 500 beneficiaries.
Outreach Camp to
Prime Bank Eye Hospital
Besides developing physical fitness, dedication towards athletic helps foster mental toughness and other important values,
including a competitive spirit, sportsmanship. leadership, determination, discipline, and overall personal development.
PBCC hopes not only to promote Bangladesh cricket on the world stage, but also to contribute in the development of more
rounded citizens.
Prime Bank has been sponsoring sports for more than a decade. This commitment for a range of sports and clubs make a
significant contribution to the sports and cultural life and enhance the attractiveness of our corporate roles.
The unique proposition of PBCC is that in 2011 we have formed a Cricket club in the name of Prime Bank Cricket Club
(PBCC) which played 1st time in the most prestigious Premier Cricket League organised by Bangladesh Cricket Board and
in the very first year we become third (3rd) in the point table, PBCC played the last super league match with Victoria
Sporting Club. They lost the last match in the super league and in the end of the League we are tie up with 24 points with
two other teams and become third (3rd) due to Head to Head law as per League by-laws.
PBCC played 11 matches in total the League stage and won 10 matches and in Super League stage we played 05 matches
and won 2 matches, out of 16 matches we won 12 matches.
PBCC organised a very gorgeous launching ceremony on 14th May, 2012 at the Pan Pacific Sonargaon Hotel being
graced by the presence of Mr. AHM Mustafa Kamal FCA, MP and President, Bangladesh Cricket Board as the Chief Guest.
The eye-catching launching being unique in the cricket arena in Bangladesh was attended by the Directors of Board of
Directors of Prime Bank Limited, its high officials and former National captains and players, BCB Directors, Club officials
from (Premier, 1st Division, 2nd Division and 3rd Division), former and current National coaches, umpires and a very handsome number of sports journalists from both electronic and print media.
Prime Bank sponsored top 3 students of BIBM for their excellent result
Sponsorship of Science Olympiad organized by Bangladesh Academy of Science
Sponsorship of Prime Bank-Dhaka College Science Expo 2012 organized by Dhaka College Science Club
Sponsorship of Alumni Night 2012 of BRAC University Alumni Association
Sponsorship of MBM Day and job Fair 2012 organized by Bangladesh Institute of Bank Management
Donation to Sirajul Ulum Arabia Madrasa
Donation of computer to Shipyard School and College, BN, Khulna
Sponsorship of Prime Bank-NDDC 24th National Debate Competition
Sponsorship of Inter University/school debate competition organized by London college of legal studies
Health
Donation to a good numbers of individuals for their Cardiac, Kidney, Cancer and other treatments
Sports
Disaster Management
Prime Bank donated cheques to the families of two martyred army officers killed in BDR carnage at Pilkhana
Distribution of blankets to the winter distressed people
Donation for fire affected workers of Tazreen Garments
Others
Supported Desh TV to organize a programme on budget discussion
Donation to Proyash, an institute worked for betterment of Handicapped children, patronised by Bangladesh
Army
Sponsorship to Chittagong Boat Club to inaugurate the club house and passenger vessel
Setting public addressing system at Chittagong Mohila Samity school
Sponsoring marine academy for best cadet
Distributed 5 formalin de-hydrate machine to FBCCI
Jessore press club construction
Financial assistance to Bangladesh Bannya Prani Sheba Foundation
G oa l 2
G oa l 3
Make
education
more
accessible to the target
population we work for
Our
capacity
development
endeavour, is envisioned to
institutionalise
learning
processes and systematically
organise sharing of information,
experiences, best practices and
lessons learned with our project
level people and the organisation
to we work partner with. We aim
institutionalise the core values of
responsible corporate citizenship
into the way of doing business, to
mould future business and to
professionalise the practice of
CSR. Monitored, measured and
report on the impact of the work
that we do
Sizeable
increase
of
our
programme reach in all 64
districts of the country including
the very hard-to- reach areas
through ESP, a programme to
respond to the needs of the
grad/undergrad/ post-grad level
underprivileged but meritorious
students of the country.
Availability of low cost quality
education to a much bigger
number of children through
Prime Campus, Uttara and its
new branch at Mirpur.
Signing of an MOU with Cebu
Normal University, one of
the centres of excellence for
nursing education in
the
Philippines to have them as
a technical assistance partner
for Prime Bank Nursing Institute,
a new initiative of Prime Bank
Foundation which has been set
in the reporting year aiming at
developing highly skilled nurses
at an affordable price needed
to meet the increasingly high
demand of nurses by different
healthcare
service providers
in the country and beyond.
The Institute will start its first
academic session from the
beginning of 2013 offering
three year diploma course in
nursing.
Directors Report
Auditors Report to the Shareholders
Financial Statements - Group & PBL
Financial Statements - OBU
Financial Statements - PBIL
Financial Statements - PBSL
Financial Statements - PECL, Singapore
Financial Statements - PBL Exchange (UK) Ltd.
Financial Statements - PBL Finance (Hong Kong) Ltd.
Calendar of Significant Events
Notice of the 17th Annual General Meeting
Branch Network
Glossary
Directors Report-2012
(Under Section 184 of Companies Act 1994)
The Board of Directors of Prime Bank Limited has the
pleasure of presenting the 18th Annual Report and Audited
Financial Statements for the year 2012 together with the
Report of the Auditors to the shareholders. A brief overview
of the world market trend with the performance of Bangladesh Economy has also been provided in this Report. A
review of this report would reveal continuous growth of the
bank in a stiff competitive environment.
Global Economy
The World Bank estimated the global GDP to grow by 2.3
percent in 2012 (2.5 percent estimated by the IMF). The
world economy continued to struggle four years after the
onset of the global financial crisis. Developing economies
were still the main driver of global growth. GDP growth in
Euro area is estimated to be scaled down in 2013. Data for
the fourth quarter on US economy suggest that it too will be
weak despite improving retail sales, housing markets, and
employment. GDP growth for East Asia and the Pacific
region is projected to slow to 7.5 percent in 2012 largely on
account of weak external demand and policy actions in
China directed towards moderating domestic demand and
controlling inflation. Going forward, GDP growth in the
region is projected to accelerate to 7.9 percent in 2013.
South Asia's growth weakened to 5.4 percent in 2012,
mainly reflecting a sharp slowdown in India. The regions
GDP is projected to rise to 5.7 percent in 2013 and 6.4
percent in 2014, helped by policy reforms in India, stronger
investment activity, and a gradual improvement in global
demand for South Asias exports. Migrant remittances in
particular from the oil-rich Gulf Cooperation Council (GCC)
countries are projected to remain resilient and support
domestic demand in Nepal, Bangladesh and Pakistan.
Details on global economy are given in Management
Discussion and Analysis chapter of this Annual Report.
Bangladesh Economy
Despite the global economic downturn, the Bangladesh
economy achieved an impressive growth of 6.3 percent
during FY12. A strong demand and continued expansion of
infrastructural facilities helped to accomplish this accelerated economic growth amidst the fragile pace of global
economic recovery. The expansion of the economy during
FY12 was broad-based, registering positive growth by all
sectors and sub-sectors of the economy.
The monetary policy remained accommodative for productive economic activities with growth supportive financial
inclusion promotion measures in credit policies while also
firmly discouraging diversion and undue expansion of bank
credit for wasteful unproductive uses to stem build-up of
inflationary pressures.
Directors Report-2012
Directors Report-2012
A rice mill
A weaving factory
A rubber factory
Directors Report-2012
Capital Management
Corporate Governance
The banks capital fund is divided into two parts- Tier-I and
Tier-II capital. Tier-I includes the equity (paid-up capital,
share premium, statutory reserve and retained earnings) and
Tier-II includes general provision on unclassified loans and
advances, revaluation reserves, unsecured subordinated
debt and exchange equalization account. Total consolidated
Financial Analysis
Total Assets
Consolidated assets of the bank stood at Tk 238,169 million in
2012 as against Tk 200,996 million in 2011. Total assets of PBL
stood at Tk 236,833 million in 2012 from Tk 199,950 million in
2011 registering a growth of 18.45 percent. The increase in
assets of PBL was mainly driven by growth of customer
deposits. The growth of deposits was used for funding growth in
credit and holding of securities for SLR purpose and as a
primary dealer. The economy witnessed a satisfactory growth
scenario in credit and deposits mobilization.
Annual Report 2012 199
Directors Report-2012
2012
Growth of
PBL
Industry
Average
Grouth
2011
236,833
199,950
18.45
17.99
Deposits
182,053
159,816
13.91
20.31
Loans &
Advances
160,890
138,848
15.87
16.24
Assets
Deposits
Investment
PBLs investment increased during the year by Tk 10,498
million and stood at Tk 49,670 million as at 31 December
2012. The bank purchased government treasury bills to
cover the increased SLR requirement. In addition, as a
primary dealer PBL had to buy government treasury
bills/bonds which were devolved by Bangladesh Bank.
Loans and Advances / Investments
Consolidated loans and advances/investments (credit under
Islamic Shar'iah) of the bank grew strongly by 16.39 percent
and stood at Tk 165,042 million in 2012. Loans and advances
of PBL increased by Tk 22,041 million showing a growth of
15.87 percent during 2012. Investment of Islamic banking
branches was Tk 13,670 million and the growth rate was 3.02
percent during 2012. Outstanding loans and advances of
off-shore banking units was Tk 4,895 million showing a
growth of 41.05 percent. Yield on loans and advances of PBL
increased to 15.17 percent from the level of 13.07 percent of
previous year due to increase of lending rates. Concentration
of loans and advances was well managed and details of
credit are given at notes to accounts no 7(a).5. Ratio of non
Annual Report 2012 200
Types of
Deposits
Outstanding
Taka in million
2012
Current &
Contingent
Bills Payable
Savings
Special Notice
Deposits
FDR
Scheme
Deposits
Total Deposits
2011
Growth
%
Mix (%)
2012
2011
27,975 23,934
16.88
15.37 14.98
3,421 2,993
19,189 17,944
8,412 7,938
14.30
6.94
5.97
1.88 1.87
10.54 11.23
4.62 4.97
82,608 73,171
40,448 33,836
12.90
19.54
45.37 45.78
22.22 21.17
Shareholders Equity
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
Particulars
Interest income
Interest expense
Net interest income
Investment income
Non-interest income
Total operating income
Total operating expenses
Profit before tax and provision
General provision on loans
Provision for classified loans
General provision on offbalance sheet items
Provision for diminution in
value of investments
Other provisions
Net profit before tax
Provision for tax including
deferred tax
Net profit after tax
2012
Taka in million
%
Change
2011
(1,302)
5,335
2,636
6,766 (21.15)
3,132 (15.83)
2,699
3,634 (25.73)
Interest Income
PBLs interest income increased by 36.58 percent during
2012. Interest earned from loan and profit earned on
investment remained the principal component of interest
income. Yield on loans and advances increased to 15.38
percent in 2012 from 13.06 percent in the previous year
due to increase in rates of interest on lending and drives for
recovery of non-performing loans.
Interest Expense
On the other hand, PBLs interest expense increased by 37.65
percent during 2012. Interest cost of deposits was the main
component of interest expenses whereas interest cost of
borrowings also had a significant impact in 2012. Interest cost
of deposits increased to 8.75 percent in 2012 from 8.15 percent
in the previous year due to increase in rates of interest on
deposits arising from overall liquidity pressure in the market.
Moreover, the liquidity pressure compelled the bank, a Primary
Dealer, to go for mobilization of additional high cost deposits
and additional borrowings to purchase treasury bills / bonds
which were devolved by the Bangladesh Bank. This caused
interest expense on deposits to increase by 30.83 percent and
interest expense on borrowings to increase by 112.41 percent.
Investment Income
PBLs investment income consists of interest / discount
earned on treasury bills / bonds, gain on government security
trading, dividend received on shares and capital gain from
sale of securities of listed companies. Investment income
increased by Tk 476 million during the year registering a
growth of 11.45 percent over the previous year, accounted for
34.34 percent of the operating income. Since PBL is a primary
dealer, securities were devolved by the Bangladesh Bank in
excess of SLR requirement. As such interest/discount income
became the main contributor to investment income.
Non-Interest Income
Non-interest income of PBL increased by 3.18 percent
during the year. Commission and exchange based income of
the bank decreased by 9.65 percent during the year due to
fall in import business and lower spread between buying and
selling rates of foreign currencies. However, other charges
and recoveries increased during the year registering a
growth of 56.11 percent as a result of realization of charges
against banks superior services provided which contributed
to overall growth of non-interest income.
Total Operating Income
Due to the reasons explained above, total operating income
of the bank grew by 16.72 percent during the year and
stood at Tk 13,492 million.
Total Operating Expense
Total operating expenses of PBL increased by 19.58
percent during the year mainly due to increase in
personnel and other operating expenses. To match with
the growth of SME and retail business and branch
expansion a number of manpower was recruited along
with sales force. Moreover, to keep the salary package
competitive in the industry, there was upward revision of
the packages in the last quarter of 2011 which had full
effect in personnel expenses in the year 2012. However,
the enhancement of the package will motivate our
employees to do even better in future and targeted
increase of business especially in SME and retail
segments will benefit the bank in broad spectrum. PBL
also made donation amounting to Tk 213.41 million to
Prime Bank Foundation to carry on various CSR activities.
PBL also focused on developing brand image and
increased promotional and advertisement expenses. This
strategy added value to the business. The banks cost
income ratio was 36.62 percent in 2012 which slightly
increased from 35.75 percent in 2011 due to increased
investment in branch expansion and development of IT
infrastructure. Considering the factors stated above, the
ratio indicates the satisfactory operating efficiency of the
bank as per the industry standard.
The productivity of the employee continued to grow which
is evident from the following ratio:
Directors Report-2012
Taka in million
Particulars
Income per employee
2012
5.30
5.04
3.36
3.24
93.09
87.24
1.94
2.10
2011
1.80
2.95
2012
3.83%
10.03%
100.15%
2011
1.37%
6.10%
106.43%
We have examined the compliances of conditions of The Corporate Governance guidelines of the
Bangladesh Securities and Exchange Commission (BSEC) by Prime Bank Limited (the Bank)
as stipulated in clause 7(i) of the BSEC notification no SEC/CMRRCD/2006-158/134/Admin/44
dated 7 August 2012.
The compliances of conditions of The Corporate Governance guidelines as stated in the aforesaid
notification and reporting of the status of compliance is the responsibility of the Banks
Management. Our examination for the purpose of issuing this certification was limited to the
checking of procedures and implementations thereof, adopted by the Bank for ensuring the
compliance of conditions of corporate governance and correct reporting of compliance status on
the attached statement on the basis of evidence gathered and representation received.
To the best of our information and according to the explanations given to us, we certify that,
except as reported on the attached status of compliance statement, the Bank has complied with
the conditions of corporate governance stipulated in the above mentioned BSEC notification
dated 7 August 2012.
Auditors Report
to the shareholders of Prime Bank Limited
We have audited the accompanying consolidated financial statements of Prime Bank Limited and its subsidiaries (together
referred to as the Group) as well as standalone financial statements of Prime Bank Limited (the Bank) for the year ended
31 December 2012 which comprise the balance sheet, profit and loss account, statement of changes in equity and cash
flow statement for the year then ended, and a summary of significant accounting policies, other explanatory notes and
information.
Managements responsibilities for the Consolidated Financial Statements
Management is responsible for the preparation of consolidated financial statements that give a true and fair presentation of
these in accordance with Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS)
as explained in note 2, the Bank Companies Act 1991, the rules and regulations issued by the Bangladesh Bank, the
Companies Act 1994 and other applicable laws and regulations, and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditors responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit
in accordance with Bangladesh Standards on Auditing. Those standards require that we comply with relevant ethical
requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free of
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control
relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting principles 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 the financial statements of the Bank.
The financial statements of the Banks five subsidiaries, namely Prime Exchange Co. Pte. Ltd. (Singapore), Prime Exchange
(UK) Ltd., PBL Finance (Hong Kong) Ltd., Prime Bank Investment Ltd. and Prime Bank Securities Ltd. reflects total assets
of Tk. 10,458,486,721 as at 31 December 2012 and total revenue of Tk.1,327,577,073 for the year ended 31 December
2012. These financial statements have been audited by other component auditors who have expressed unqualified audit
opinion and accepted by us for the audit of the Groups consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the financial statements have been prepared in accordance with Bangladesh Accounting Standards (BAS)
and Bangladesh Financial Reporting Standards (BFRS) as explained in note 2, give a true and fair view of the financial
position of the Group and the Bank as at 31 December 2012 and of the results of their financial performance and their
cash flows for the year then ended and comply with the applicable sections of the Bank Companies Act 1991, the rules and
regulations issued by the Bangladesh Bank, the Companies Act 1994, the Securities and Exchange Rules 1987 and other
applicable laws and regulations.
Annual Report 2012 206
we have obtained all the information and explanations which to the best of our knowledge and belief were necessary
for the purposes of our audit and made due verification thereof;
b)
in our opinion, proper books of account as required by law have been kept by the Bank so far as it appeared from
our examination of those books and proper returns adequate for the purpose of our audit have been received from
branches not visited by us;
c)
the Banks balance sheet and profit and loss account together with the annexed notes 1 to 50 dealt with by the report
are in agreement with the books of account and returns;
d)
the expenditure incurred was for the purpose of the Banks operations;
e)
the financial position of the Bank as at 31 December 2012 and the profit for the year then ended have been properly
reflected in the financial statements, the financial statements have been prepared in accordance with the generally
accepted accounting principles;
f)
the financial statements have been drawn up in conformity with the Bank Companies Act 1991 and in accordance
with the accounting rules and regulations issued by the Bangladesh Bank;
g)
adequate provisions have been made for advances and other assets which are in our opinion, doubtful of recovery;
h)
the financial statements conform to the prescribed standards set in the accounting regulations issued by the
Bangladesh Bank after consultation with the professional accounting bodies of Bangladesh;
i)
the records and statements submitted by the branches have been properly maintained and consolidated in the
financial statements;
j)
the information and explanations required by us have been received and found satisfactory;
k)
over 80% of the risk weighted assets have been reviewed by us spending over 5,000 person hours;
l)
Capital adequacy Ratio (CAR) as required by the Bangladesh Bank has been maintained adequately during the year.
Notes
2012
Amount in Taka
2011
Investments
Government
Others
2,069,226,315
1,474,979,105
14,117,939,937
16,187,166,252
12,032,573,269
13,507,552,374
251,534,389
1,466,724,570
1,718,258,959
382,122,372
1,197,482,195
1,579,604,567
44,936,697,967
3,065,827,910
48,002,525,877
34,395,651,805
3,120,176,474
37,515,828,279
156,374,907,982
134,406,227,505
8,667,419,387
165,042,327,369
4,419,804,836
2,798,965,983
238,169,049,276
7,395,421,459
141,801,648,964
4,033,403,880
2,557,642,372
200,995,680,436
21,149,348,118
10,969,847,805
27,294,077,412
3,421,438,111
19,188,831,632
132,058,072,695
181,962,419,850
23,625,794,636
2,992,596,076
17,943,888,911
115,250,080,280
159,812,359,903
14,095,474,132
217,207,242,100
10,950,827,275
181,733,034,983
14.2
9,357,714,690
7,798,095,580
14.9
15
16
17
18
67
6,839,527,566
42,034,865
251,603,567
4,510,188
2,225,185,837
20,961,807,176
238,169,049,276
63
5,772,509,105
259,338,544
251,603,567
8,058,632
2,931,809,566
19,262,645,453
200,995,680,436
9
10
Minority Interest
Statutory reserve
Revaluation gain / loss on investments
Revaluation reserve
Foreign currency translation gain
Other reserve
Surplus in profit and loss account / Retained earnings
Total Shareholders equity
Total liabilities and Shareholders equity
11
12
13
14.8
19
2,241,230,396
2,241,230,396
Notes
2012
Amount in Taka
2011
20
20.1
20.2
20.3
20.4
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
Liabilities against forward purchase and sale
26,979,335,910
42,846,572,774
28,353,752,325
10,007,661,530
108,187,322,539
28,963,416,330
34,955,284,339
29,706,663,305
7,429,741,406
101,055,105,380
108,187,322,539
101,055,105,380
These financial statements should be read in conjunction with the annexed notes 1 to 50.
Chairman
Director
Director
Managing Director
Notes
2012
Amount in Taka
2011
22
23,807,748,522
17,546,811,157
23
(17,987,629,591)
(13,046,539,824)
5,820,118,931
4,500,271,333
24
4,451,946,974
4,224,206,552
25
2,628,137,057
2,917,119,847
26
1,101,978,717
798,991,288
14,002,181,679
12,440,589,020
27
2,780,540,201
2,131,614,239
28
474,283,014
403,458,311
Legal expenses
29
32,391,528
18,559,956
30
134,466,650
138,050,963
31
308,479,135
303,104,472
32
11,448,000
9,192,067
Directors fees
33
5,217,746
3,699,624
Auditors fees
34
1,522,518
1,312,505
35
36
345,856,437
284,073,883
Other expenses
37
1,068,015,016
1,010,684,627
5,162,220,245
4,303,750,647
8,839,961,434
8,136,838,373
Specific provision
1,490,000,000
226,000,000
General provision
240,000,000
305,000,000
140,000,000
130,000,000
1,870,000,000
661,000,000
(27,053,710)
389,941,266
179,183,361
Other provisions
1,301,942,300
3,324,071,951
1,050,941,266
5,515,889,483
7,085,897,107
2,629,200,771
3,171,778,786
186,283,025
225,165,885
2,815,483,796
3,396,944,671
2,700,405,687
3,688,952,436
591,798,618
596,047,115
3,292,204,305
4,284,999,551
38
39
Deferred tax
Net profit after taxation
Retained earnings brought forward from previous year
19.1
Notes
2012
Amount in Taka
2011
Appropriations
Statutory reserve
1,067,018,461
1,353,189,982
Minority interest
General reserve
Retained surplus
19
44
1,067,018,468
1,353,189,985
2.89
3.94
2,225,185,837
2,931,809,566
These financial statements should be read in conjunction with the annexed notes 1 to 50.
Chairman
Director
Director
Managing Director
Chartered Accountants
Chartered Accountants
Notes
2012
Amount in Taka
2011
26,869,276,024
19,000,177,647
Interest payments
(17,771,734,765)
(11,980,804,137)
Dividend receipts
14,477,350
467,592,508
2,628,137,056
2,916,034,666
85,048,984
110,069,208
(2,654,658,200)
(2,124,206,268)
(688,608,205)
(579,510,579)
(1,992,688,589)
(2,761,312,666)
40
1,918,600,187
1,913,154,655
41
(1,453,178,417)
(1,474,437,464)
6,954,671,425
5,486,757,570
1,157,486,973
(4,885,593,657)
(23,651,758,398)
(23,078,063,101)
(12,968,997,333)
(10,746,999,469)
9,125,817,450
8,282,513,358
22,559,005,948
31,179,063,572
428,842,035
554,840,857
685,431,691
1,557,180,763
(2,664,171,634)
2,862,942,323
4,290,499,791
8,349,699,893
5,000,000
5,000,000
(2,591,181)
(416,281,955)
(676,877,625)
(2,514,084,521)
(5,720,867)
(5,089,558)
3,893,813
240,300
(676,295,860)
(2,930,215,734)
42
43
C)
Notes
2012
Amount in Taka
2011
Receipts from issue of ordinary share including premium net off Tax
Dividend paid
(779,809,558)
(744,474,022)
(779,809,558)
(744,474,022)
D)
2,834,394,373
4,675,010,137
E)
(13,654,203)
(251,323,912)
F)
15,089,790,941
10,666,104,716
G)
17,910,531,111
15,089,790,941
2,069,226,315
1,474,979,105
14,117,939,937
12,032,573,269
1,718,258,959
1,579,604,567
Reverse repo
5,105,900
2,634,000
17,910,531,111
15,089,790,941
These financial statements should be read in conjunction with the annexed notes 1 to 50.
Chairman
Director
Director
Managing Director
9,357,714,690
7,798,095,580
Chairman
Minority interest
5,772,509,105
6,839,527,566
1,067,018,461
5,772,509,105
5,772,509,105
2,241,230,396
2,241,230,396
2,241,230,396
2,241,230,396
Taka
Share
premium
63
67
63
63
Taka
Minority
interest
251,603,567
251,603,567
251,603,567
251,603,567
Taka
Revaluation
reserve
259,338,544
42,034,865
Director
Director
42,034,865
151,271,024
(368,574,703)
259,338,544
259,338,544
Taka
Revaluation
gain / loss on
investments
These financial statements should be read in conjunction with the annexed notes 1 to 50.
Cash dividend
1,559,619,110
7,798,095,580
7,798,095,580
Taka
Taka
Restated balance
Particulars
Statutory
reserve
Paid up
capital
8,058,632
4,510,188
4,510,188
(3,548,444)
8,058,632
8,058,632
Taka
F.C.
translation
gain
Taka
Total
(4,130,727)
151,271,024
(368,574,703)
(779,809,558)
2,700,405,687
Managing Director
2,931,809,566 19,262,645,453
2,225,185,837 20,961,807,176
(1,067,018,461)
(4)
(779,809,558)
(1,559,619,110)
2,700,405,687
2,931,227,283 19,041,211,047
(582,283)
2,931,809,566 19,262,645,453
2,931,809,566 19,262,645,453
Taka
Retained
earnings
Balance Sheet
as at 31 December 2012
Particulars
Notes
2012
Amount in Taka
2011 (Restated)
3a
4a
Outside Bangladesh
5
Investments
6a
Others
Other assets
1,464,103,675
14,117,939,937
12,032,573,269
16,177,443,513
251,389,642
8a
9a
10a
Total assets
377,477,308
1,138,637,962
44,936,697,967
34,395,651,805
49,670,435,192
39,172,298,623
153,440,706,958
132,028,898,117
160,889,848,563
138,848,430,008
4,087,797,994
2,941,514,147
236,833,005,579
199,950,493,482
20,681,977,457
10,969,847,805
27,373,823,258
23,628,852,206
19,188,831,632
17,943,888,911
4,733,737,225
7a
13,496,676,944
1,392,741,405
1,644,131,047
Government
2,059,503,576
7,449,141,605
4,363,349,270
-
1,516,115,270
4,776,646,818
6,819,531,891
3,975,458,490
11a
12a.1.c
Bills payable
3,421,438,111
Other liabilities
Total liabilities
Share premium
Statutory reserve
13a
13,311,117,157
159,815,720,972
10,069,949,491
14 .2
9,357,714,690
7,798,095,580
15
6,839,527,566
5,772,509,105
17
251,603,567
251,603,567
14.8
18a
19a
180,855,518,268
216,045,966,674
16a
Other reserve
115,250,383,779
182,052,872,060
132,068,779,059
Other deposits
2,992,596,076
2,241,230,396
19,719,692
5,015,711
-
2,072,227,283
20,787,038,905
236,833,005,579
2,241,230,396
243,159,736
8,694,724
-
2,779,682,107
19,094,975,214
199,950,493,482
Balance Sheet
as at 31 December 2012
Particulars
Notes
2012
Amount in Taka
2011 (Restated)
20a
20a.1
26,979,335,910
28,963,416,330
Letters of guarantee
20a.2
42,846,572,774
34,955,284,339
20a.3
28,353,752,325
29,706,663,305
20a.4
10,007,661,530
7,429,741,406
108,187,322,539
101,055,105,380
108,187,322,539
101,055,105,380
Other commitments
These financial statements should be read in conjunction with the annexed notes 1 to 50.
Chairman
Director
Director
Managing Director
Chartered Accountants
Chartered Accountants
Notes
2012
Amount in Taka
2011 (Restated)
22a
22,821,500,674
16,708,767,903
23a
(17,410,286,124)
(12,647,982,518)
5,411,214,550
4,060,785,385
24a
4,633,326,302
4,157,293,110
25a
2,429,444,757
2,688,928,970
26a
1,017,962,459
652,092,975
13,491,948,068
11,559,100,440
27a
2,673,292,974
2,057,720,184
28a
430,873,148
367,568,017
Legal expenses
29a
28,570,418
16,312,942
30a
127,601,535
132,056,013
31a
304,366,321
298,731,953
32
11,448,000
9,192,067
Directors fees
33a
5,152,571
3,569,924
Auditors fees
34a
575,000
522,500
35
36a
331,708,120
271,478,216
Other expenses
37a
1,027,527,828
974,998,715
4,941,115,915
4,132,150,531
8,550,832,153
7,426,949,909
Specific provision
1,490,000,000
226,000,000
General provision
240,000,000
305,000,000
140,000,000
130,000,000
1,870,000,000
661,000,000
43,797,548
Other provisions
1,301,942,300
3,215,739,848
661,000,000
5,335,092,305
6,765,949,909
2,449,800,000
2,907,320,000
186,300,000
224,500,000
2,636,100,000
3,131,820,000
2,698,992,305
3,634,129,909
440,253,439
498,742,179
3,139,245,744
4,132,872,089
38a
39a
Deferred tax
19.1a
Notes
2012
Amount in Taka
2011 (Restated)
Appropriations
Statutory reserve
1,067,018,461
1,353,189,982
1,067,018,461
1,353,189,982
General reserve
Retained surplus
19a
2,072,227,283
2,779,682,107
44a
2.88
3.88
These financial statements should be read in conjunction with the annexed notes 1 to 50.
Chairman
Director
Director
Managing Director
Chartered Accountants
Chartered Accountants
Notes
2012
Amount in Taka
2011
25,883,028,176
18,162,184,424
Interest payments
(17,194,391,298)
(11,585,290,180)
Dividend receipts
14,477,350
467,592,508
2,429,444,756
2,688,968,185
85,048,984
110,069,208
(2,554,040,973)
(2,066,912,251)
(683,868,903)
(576,159,881)
(1,992,688,589)
(2,761,312,666)
40a
1,775,963,262
1,698,153,270
41a
(1,355,446,797)
(1,369,935,123)
6,407,525,968
4,767,357,494
1,157,486,973
(4,885,593,657)
(22,041,418,555)
(22,791,905,847)
(13,647,964,993)
(10,643,375,389)
8,658,446,788
8,282,513,358
22,646,097,089
31,097,395,141
428,842,035
554,840,857
786,096,248
1,085,124,521
(2,012,414,415)
2,698,998,984
4,395,111,553
7,466,356,478
5,000,000
5,000,000
(127,663,428)
(29,996,467)
(666,354,778)
(2,505,029,178)
(5,720,867)
(5,089,558)
3,893,813
240,300
(790,845,260)
(2,534,874,903)
42a
43a
Notes
2012
Amount in Taka
2011
Receipts from issue of ordinary share including premium net off Tax
Dividend paid
(779,809,558)
(288,818,355)
(779,809,558)
(288,818,355)
D)
2,824,456,735
4,642,663,220
E)
(13,202,489)
(243,265,280)
F)
15,015,426,214
10,616,028,274
G)
17,826,680,460
15,015,426,214
2,059,503,576
1,464,103,675
14,117,939,937
12,032,573,269
1,644,131,047
1,516,115,270
Reverse repo
5,105,900
2,634,000
17,826,680,460
15,015,426,214
These financial statements should be read in conjunction with the annexed notes 1 to 50.
Chairman
Director
Director
Managing Director
9,357,714,690
7,798,095,580
Chairman
5,772,509,105
6,839,527,566
1,067,018,461
5,772,509,105
5,772,509,105
Taka
Statutory
reserve
251,603,567
251,603,567
251,603,567
251,603,567
Taka
Revaluation
reserve
243,159,736
19,719,692
Director
Director
19,719,692
145,134,659
(368,574,703)
243,159,736
243,159,736
Taka
Revaluation
gain / loss on
investments
These financial statements should be read in conjunction with the annexed notes 1 to 50.
2,241,230,396
2,241,230,396
Cash dividend
Share premium
2,241,230,396
2,241,230,396
1,559,619,110
7,798,095,580
7,798,095,580
Taka
Taka
Restated balance
Particulars
Share
premium
Paid-up
Capital
8,694,724
5,015,711
5,015,711
(3,679,013)
8,694,724
8,694,724
Taka
F.C.
Translation
gain
19,094,975,214
20,787,038,905
(779,809,558)
2,698,992,305
18,867,856,157
(3,679,013)
145,134,659
(368,574,703)
19,094,975,214
19,094,975,214
Taka
Total
Managing Director
2,779,682,107
2,072,227,283
(1,067,018,461)
(779,809,558)
(1,559,619,110)
2,698,992,305
2,779,682,107
2,779,682,107
2,779,682,107
Taka
Retained
earnings
1.1.1
Principal activities
The principal activities of the Bank are to provide all kinds of commercial banking services to customers through
its branches and SME centre/ Branches in Bangladesh. The Bank also provides Offshore banking services
through 3(three) OBUs.
1.1.2
1.2
The Bank has 5 (Five) Subsidiaries details of which are given at note no. 1.2.1-1.2.5.
1.2.1
1.2.2
1.2.3
1.2.5
2.00
2.1
Basis of accounting
2.1.1
Statement of compliance
The financial statements of the Bank and its subsidiaries (the Group) are made up to 31 December 2012 and
are prepared under the historical cost basis, except for certain investments which are stated at fair/market value
and freehold land which are measured at revalued amount, in accordance with the First Schedule (Sec-38) of the
Bank Companies Act 1991, BRPD Circular # 14 dated 25 June, 2003 and DFIM Circular # 11, dated 23 December
2009, other Bangladesh Bank Circulars, Bangladesh Accounting Standards (BAS) and Bangladesh Financial
Reporting Standards (BFRS) adopted by the Institute of Chartered Accountants of Bangladesh (ICAB), the
Companies Act 1994, the Securities and Exchange Rules 1987, Dhaka & Chittagong Stock Exchanges listing
regulations and other laws and rules applicable in Bangladesh. In case the requirement of Bangladesh Bank
differs with those of BAS/BFRS, the requirement of Bangladesh Bank have been applied.
In addition to foregoing directives and standards, the operation of Islamic Banking Branches are accounted for in
accordance with Financial Accounting Standards issued by the Accounting and Auditing Organisation for Islamic
Financial Institutions, Bahrain, and Bangladesh Bank circular no-15, dated November 09, 2009. A separate
balance sheet, profit and loss account and a statement of profit paid on deposits are shown in Annexure-G and
G(1) and the figures appearing in the annexure have been incorporated in the related heads of these financial
statements as recommended by the Central Shariah Board for Islamic Banks in Bangladesh.
2.1.2
Basis of consolidation
The consolidated financial statements include the financial statements of Prime Bank Limited, and its subsidiaries
Prime Bank Investment Limited, Prime Bank Securities Limited, Prime Exchange Co. Pte. Ltd., Singapore, PBL
Exchange (UK) Limited and PBL Finance (Hong Kong) Limited made up to the end of the financial year.
The consolidated financial statements have been prepared in accordance with Bangladesh Accounting Standard
27: Consolidated and Separate Financial Statements. The consolidated financial statements are prepared to a
common financial year ending 31 December 2012.
Subsidiary
Subsidiary is that enterprise which is controlled by the Bank. Control exists when the Bank has the power, directly
or indirectly, to govern the financial and operating policies of an enterprise from the date that control commences
until the date that control ceases. The financial statements of subsidiary are included in the consolidated
financial statements from the date that control effectively commences until the date that the control effectively
Annual Report 2012 223
Price
PBL Exchange
(UK) Ltd.
PBL Finance
(Hong Kong) Ltd.
Closing price
65.23680
129.10130
10.30321
Average price
64.13665
127.78200
10.41756
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Profit and loss
resulting from transactions between Group are also eliminated on consolidation.
2.1.3
2.1.4
Assets and liabilities are translated at the exchange rate ruling at the balance sheet date;
ii)
Income and expenses in the income statement are translated at an average rate approximating the
exchange rates at the year end;
iii)
iv)
As per BAS 21 Foreign Currency Transactions, foreign currency denominated non-monetary items of
the OBUs are translated at historical rate, as the OBUs are considered as an integral part of the Banks
operation not a foreign operation due to specific regulations governing the OBU and its unique nature.
2.1.6
Liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on residual maturity
term as per the following basis [Annexure-I and I(1)].
i)
Balance with other Banks and financial institutions, money at call and short notice, etc. are on the basis
of their maturity term;
ii)
iii)
Loans and advances / investments are on the basis of their repayment schedule;
iv)
v)
vi)
Borrowing from other Banks, financial institutions and agents, etc. are as per their maturity / repayment
terms;
vii)
Deposits and other accounts are on the basis of their maturity term and past trend of withdrawal by the
depositors;
Provisions and other liabilities are on the basis of their payment / adjustments schedule.
viii)
2.1.7
Reporting period
These financial statements cover one calendar year from 1 January to 31 December 2012.
2.1.8
Offsetting
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 recognised amounts and there is an intention to settle on a net basis, or
realize the asset and settle the liability simultaneously (note-9a, 13a.1, 24a, 25a.1).
Annual Report 2012 225
Restatement
In order to comply with the Bangladesh Accounting Standards (BAS-8), Accounting Policies, Changes in
Accounting Estimates and Errors. As per the standard it requires to restate the interest income/profit for Taka
28,053,160 of 2011 (note 22a) and the retained earnings as on 01.01.2011 by Taka 15,696,557 to show the
retrospective effect that has occurred for the relevant year of transaction. Consequently, the above amount was
adjusted with interest/profit suspense account.
2.2
2.2.1
2.2.2
Loans and advances are stated in the balance sheet on gross basis.
b)
Interest / profit is calculated on a daily product basis but charged and accounted for on accrual basis.
Interest / profit on classified loans and advances / investments is kept in suspense account as per
Bangladesh Bank instructions and such interest / profit is not accounted for as income until realised
from borrowers [note - 7a.10 (x)]. Interest / profit is not charged on bad and loss loans / investments
as per guidelines of Bangladesh Bank. Records of such interest amounts are kept in separate
memorandum accounts.
c)
Commission and discounts on bills purchased and discounted are recognized at the time of
realization.
d)
Provision for loans and advances / investments is made on the basis of year-end review by the
management following instructions contained in Bangladesh Bank BCD Circular no. 34 dated
16 November 1989, BCD Circular no. 20 dated 27 December 1994, BCD Circular no. 12 dated 4
September 1995, BRPD Circular no. 16 dated 6 December 1998, BRPD Circular no. 9 dated 14 May
2001, BRPD Circular no.02 of February 2005, BRPD Circular no. 09 of August 2005 ,BRPD Circular
no. 17 dated 06 December 2005,BRPD circular no.32 dated 27 October 2010, BRPD Circular no.14
dated 23.09.2012 and BRPD Circular no.19 dated 27.12.2012. The provision rates are given below:
Particulars
General provision on unclassified general loans and advances / investments
General provision on unclassified small enterprise financing
Rate
1%
0.25%
1%
2%
5%
5%
20%
50%
100%
2.2.3
e)
Loans and advances / investments are written off to the extent that (i) there is no realistic prospect of
recovery, (ii) and against which legal cases are pending for more than five years as per guidelines of
Bangladesh Bank. These write off however will not undermine / affect the claim amount against the
borrower. Detailed memorandum records for all such write off accounts are meticulously maintained
and followed up.
f)
Amounts receivable on credit cards are included in advances to customers at the amounts expected
to be recovered.
Investments
All investment securities are initially recognised at cost, being fair value of the consideration given, including
acquisition charges associated with the investment. Premiums are amortized and discounts accredited, using the
effective yield method and are taken to discount income. The valuation method of investments used are:
Held to maturity (HTM)
Investments which have fixed or determinable payments, and are intended to be held to maturity, other than
those that meet the definition of held at amortized cost-others are classified as held to maturity. Investment
(HTM)-BHBFC is shown in the financial statements at cost price.
Held for trading (HFT)
Investments classified in this category are acquired principally for the purpose of selling or repurchasing -in shorttrading or if designated as such by the management. After initial recognition, investments are measured at fair
value and any change in the fair value is recognised in the statement of income for the period in which it arises.
These investments are subsequently revalued at current market value on weekly basis as per Bangladesh Bank
Guideline. Revaluation gain has been shown in revaluation reserve account & revaluation loss has been shown
in Profit & Loss account.
Value of investments has been enumerated as follows :
Items
Amortized value
Market value
Amortized value
Market value
Prize bond
At cost
BHBFCs-debenture
At cost
All fixed assets are stated at cost less accumulated depreciation as per BAS-16 Property, Plant
and Equipment. The cost of acquisition of an asset comprises its purchase price and any directly
attributable cost of bringing the asset to its working condition for its intended use inclusive of inward
freight, duties and non-refundable taxes.
b)
The Bank recognises in the carrying amount of an item of property, plant and equipment the cost of
replacing part of such an item when that cost is incurred if it is probable that the future economic benefits
embodied with the item will flow to the company and the cost of the item can be measured reliably.
Expenditure incurred after the assets have been put into operation, such as repairs and maintenance,
is normally charged off as revenue expenditure in the period in which it is incurred.
c)
Depreciation is charged for the year at the following rates on reducing balance method on all fixed
assets other than vehicles, software and all fixed assets of ATM related on which straight line
depreciation method is followed and no depreciation is charged on land:
Category of fixed assets
Land
Building
2.2.5
Rate
Nil
2.50%
10%
Office equipment
20%
Library books
20%
20%
Rate
10%
20%
d)
For additions during the year, depreciation is charged for the remaining days of the year and for
disposal depreciation is charged up to the date of disposal.
e)
On disposal of fixed assets, the cost and accumulated depreciation are eliminated from the fixed assets
schedule and gain or loss on such disposal is reflected in the income statement, which is determined
with reference to the net book value of the assets and net sale proceeds.
f)
Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying
asset have been capitalized as part of the cost of the asset as per BAS-23.
g)
Leasehold properties are recorded at present value of minimum lease payments or fair market value,
whichever is lower as per the provisions of BAS-17. The carrying value of leasehold properties is
amortized over the remaining lease term or useful of leasehold property, whichever is lower.
Intangible assets
a)
An intangible asset is recognized if it is probable that the future economic benefits that are attributable
to the asset will flow to the entity and the cost of the assets can be measured reliably.
b)
Software represents the value of computer application software licensed for use of the Bank, other
than software applied to the operation software system of computers. Intangible assets are carried at
its cost, less accumulated amortization and any impairment losses.
2.2.6
c)
Expenditure incurred on software is capitalized only when it enhances and extends the economic
benefits of computer software beyond their original specifications and lives and such cost is recognized
as capital improvement and added to the original cost of software.
d)
Software is amortized using the straight line method over the estimated useful life of 10 (ten) years
commencing from the date of the application software is available for use over the best estimate of its
useful economic life.
Impairment of Assets:
The policy for all assets or cash-generating units for the purpose of assessing such assets for impairment is as
follows:
The Bank assesses at the end of each reporting period or more frequently if events or changes in circumstances
indicate that the carrying value of an asset may be impaired, whether there is any indication that an asset may
be impaired. If any such indication exits, or when an annual impairment testing for an asset is required, the
bank makes an estimate of the assets recoverable amount. When the carrying amount of an asset or cashgenerating unit exceeds its recoverable amount, the asset or cash-generating unit is considered impaired and is
written down to its recoverable amount by debiting to profit & loss account.
Fixed assets are reviewed for impairment whenever events or charges in circumstances indicate that the carrying
amount of an asset may be impaired.
2.2.7
Investment properties
a)
b)
c)
2.2.8
Investment property is held to earn rentals or for capital appreciation or both and the future economic
benefits that are associated with the investment property but not sale in the ordinary course of
business.
Investment property is accounted for under cost model in the financial statements. Accordingly,
after recognition as an asset, the property is carried at its cost, less accumulated depreciation and
impairment loss.
Depreciation is provided on a reducing basis over the estimated life of the class of asset from the date
of purchase up to the date of disposal.
Other assets
Other assets include all balance sheet accounts not covered specifically in other areas of the supervisory activity
and such accounts may be quite insignificant in the overall financial condition of the Bank.
2.2.9
2.2.10
Receivables
Receivables are recognised when there is a contractual right to receive cash or another financial asset from
another entity.
2.2.11
Inventories
Inventories measured at the lower of cost and net realizable value.
Leasing
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and
rewards of ownership to the lessee as per BAS-17 Leases. All other leases are classified as operating leases
as per BAS-17 Leases.
The Bank as lessor
Amount due from lessees under finance leases are recorded as receivables at the amount of the Banks net
investment in the leases (note-7a.3). Finance lease income is allocated to accounting periods so as to reflect a
constant periodic rate of return on the banks net investment outstanding in respect of the leases.
The Bank as lessee
Assets held under finance leases are recognised as assets of the Bank at their fair value at the date of acquisition
or, if lower, at the present value of the minimum lease payments (note-9a). The corresponding liability to the lessor
is included in the balance sheet as a finance lease obligation (note-13a.9). Lease payments are apportioned
between finance charges and reduction of the lease obligation so as to achieve a constant rate of interest on the
remaining balance of the liability. Finance charges are charged directly against income.
Assets held under finance leases are depreciated over their expected useful lives on the same basis as owned
assets.
2.2.13
Non-banking assets:
There are no assets acquired in exchange for loan during the period of financial statements.
2.2.14
2.3
Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial
assets.
2.4
Statutory reserve
Bank Companies Act, 1991 requires the Bank to transfer 20% of its current years profit before tax to reserve until
such reserve equals to its paid up capital.
2.5
Revaluation reserve
When an assets carrying amount is increased as a result of a revaluation , the increase amount should be
credited directly to equity under the heading of revaluation surplus / reserve as per BAS-16: Property, Plant and
Equipment. The Bank revalued the assets of land and buildings during the year 2008 which are absolutely owned
by the Bank and the increase amount transferred to revaluation reserve. The tax effects on revaluation gain are
measured and recognised in the financial statements as per BAS-12: Income Taxes.
2.5.1
2.5.3
Share premium
Share premium is the capital that the Bank raises upon issuing shares that is in excess of the nominal value
of the shares. The share premium may be applied by the Bank in paying up unissued shares to be allotted to
members as fully paid bonus shares or writing-off the preliminary expenses of the Bank or the expenses of or
the commission paid or discount allowed on, any issue of shares or debentures of the Bank or in providing for
the premium payable on the redemption of any redeemable preference shares or of any debentures of the Bank.
Share premium was shown in accounts after deduction of income tax @3% on share premium as per finance
Act-2010.
2.7
2.8
2.9
2.9.1
2.9.2
Deferred taxation
Deferred tax is accounted for in accordance with BAS 12: Income Taxes. Deferred tax normally results in a
liability being recognized within the Statement of Financial Position. BAS 12 defines a deferred tax liability as
being the amount of income tax payable in future periods. Deferred tax is recognized on differences between
the carrying amounts of assets and liabilities in the financial statements and the corresponding tax bases used
in the computation of taxable profit, and are accounted for using the balance sheet liability method. Deferred tax
liabilities are generally recognized for all taxable temporary differences and deferred tax assets are recognized to
the extent that it is probable that taxable profits will be available against which deductible temporary differences,
unused tax losses or unused tax credits can be utilized. Such assets and liabilities are not recognized if the
temporary difference arises from goodwill or from the initial recognition (other than in a business combination) of
other assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. Deferred
tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against
current tax liabilities and when they relate to income taxes levied by the same taxation authority and the company
intends to settle its current tax assets and liabilities on a net basis.
2.9.4
2.9.5
2.9.6
Revenue recognition
2.10.1
Interest income
In terms of the provisions of the BAS-18 Revenue, the interest income is recognised on accrual basis. Interest on
loans and advances ceases to be taken into income when such advances are classified. It is then kept in interest
suspense. After the loans / investments is classified as bad, interest / profit ceases to apply and recorded in a
memorandum account. Interest/Profit on classified advances/investment is accounted for on a cash receipt basis.
2.10.2
2.10.3
Investment income
Interest income on investments is recognised on accrual basis. Capital gain on investments in shares is also
included in investment income. Capital gain is recognised when it is realised.
2.10.4
2.10.5
2.10.6
2.10.7
2.10.8
Dividend payments
Interim dividend is recognised when they are paid to shareholders. Final dividend is recognized when it is
approved by the shareholders.
The proposed dividend for the year 2012 has not been recognized as a liability in the balance sheet in accordance
with the BAS-10 : Events After the Reporting Period.
Dividend payable to the Banks shareholders is recognized as a liability and deducted from the shareholders
equity in the period in which the shareholders right to receive payment is established.
2.11
Risk management
The risk of Prime Bank Limited is defined as the possibility of losses, financial or otherwise. The risk management
of the Bank covers core risk areas of banking viz. credit risk, liquidity risk, market risk that includes foreign
exchange risk, interest rate risk, equity risk, operational risk and reputation risk arising from money laundering
incidences. The prime objective of the risk management is that the Bank evaluates and takes well calculative
business risks and thereby safeguards the Banks capital, its financial resources and profitability from various
business risks through its own measures and through implementing Bangladesh Banks guidelines and following
some of the best practices as under:
Credit risk
It arises mainly from lending, trade finance, leasing and treasury businesses. This can be described as potential
loss arising from the failure of a counter party to perform as per contractual agreement with the Bank. The failure
may result from unwillingness of the counter party or decline in his / her financial condition. Therefore, the Banks
credit risk management activities have been designed to address all these issues.
The Bank has segregated duties of the officers / executives involved in credit related activities. A separate
Corporate Division has been formed at Head Office which is entrusted with the duties of maintaining effective
relationship with the customers, marketing of credit products, exploring new business opportunities, etc. Moreover,
credit approval, administration, monitoring and recovery functions have been segregated. For this purpose, three
separate units have been formed within the credit division. These are (a) Credit Risk Management Unit (b) Credit
Administration Unit and (c) Credit Monitoring and Recovery Unit. Credit Risk Management Unit is entrusted with
the duties of maintaining asset quality, assessing risk in lending to a particular customer, sanctioning credit,
formulating policy / strategy for lending operation, etc. Adequate provision has been made on classified loans /
investments is shown in note-13a.3.
A thorough assessment is done before sanction of any credit facility at Credit Risk Management Unit. The risk
assessment includes borrower risk analysis, financial analysis, industry analysis, historical performance of the
customer, security of the proposed credit facility, etc. The assessment process at Head Office starts at Corporate
Division by the Relationship Manager / Officer and ends at Credit Risk Management Unit when it is approved /
declined by the competent authority. Credit approval authority has been delegated to the individual executives.
Proposals beyond their delegation are approved / declined by the Executive Committee and / or the Management
of the Bank. Concentration of credit risk is shown in note -7a. 5.
In determining Single borrower / Large loan limit, the instructions of Bangladesh Bank are strictly followed.
Internal audit is conducted at periodical intervals to ensure compliance of Banks and Regulatory polices. Loans
are classified as per Bangladesh Banks guidelines. Concentration of single borrower / large loan limit is shown
in note-7a.9.
2.11.2
Liquidity risk
The object of liquidity risk management is to ensure that all foreseeable funding commitments and deposit
withdrawals can be met when due. To this end, the Bank is maintaining a diversified and stable funding base
comprising of core retail and corporate deposits and institutional balance (note - 12a). Management of liquidity
and funding is carried out by Treasury Department under approved policy guidelines. Treasury front office is
supported by a very structured Mid office and Back office. The Liquidity management is monitored by Asset
Liability Committee (ALCO) on a regular basis. A written contingency plan is in place to manage extreme
situation.
2.11.3
Market risk
The exposure of market risk of the Bank is restricted to foreign exchange risk, interest rate risk and equity risk.
Foreign exchange risk
Foreign exchange risk is defined as the potential change in earnings due to change in market prices. The foreign
exchange risk of the Bank is minimal as all the transactions are carried out on behalf of the customers against
underlying L/C commitments and other remittance requirements. No foreign exchange dealing on Banks account
was conducted during the year.
Treasury Department independently conducts the transactions and the back office of treasury is responsible for
verification of the deals and passing of their entries in the books of account. All foreign exchange transactions
are revalued at Mark-to-Market rate as determined by Bangladesh Bank at the month-end. All Nostro accounts
are reconciled on a monthly basis and outstanding entry beyond 30 days is reviewed by the management for its
settlement. The position maintained by the bank at the end of day was within the stipulated limit prescribed by
the Bangladesh Bank.
2.11.5
Operational risk
Operational risk may arise from error and fraud due to lack of internal control and compliance. Management
through Internal Control and Compliance Division controls operational procedure of the Bank. Internal Control
and Compliance Division undertakes periodical and special audit of the branches and departments at the Head
Office for review of the operation and compliance of statutory requirements. The Audit Committee of the Board
subsequently reviews the reports of the Internal Control and Compliance Division.
2.12
2.13
2.14
2.15
Memorandum items
Memorandum items are maintained to have control over all items of importance and for such transactions where
the Bank has only a business responsibility and no legal commitment. Bills for collection, Stock of travelers
cheques, savings certificates, wage earners bonds and other fall under the memorandum items. However, Bills
for Collection is shown under contingent liabilities as per Bangladesh Banks format of reporting.
2.17
2.18
Compliance report on Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS)
The Institute of Chartered Accountants of Bangladesh (ICAB) is the sole authority for adoption of Bangladesh
Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS). While preparing the
financial statements, Prime Bank applied all the applicable of BAS and BFRS as adopted by ICAB. Details are
given below:
Name of the BAS
Presentation of Financial Statements
BAS no.
Status
Applied *
Inventories
Applied
Applied
Applied
10
Applied
Construction Contracts
11
N/A
Income Taxes
12
Applied
16
Applied
Leases
17
Applied
Revenue
18
Applied
Employee Benefits
19
Applied
20
N/A
21
Applied
Borrowing Costs
23
Applied
24
Applied
26
N/A **
BAS no.
Status
27
Applied
Investments in Associates
28
Applied
31
N/A
32
Applied *
33
Applied
34
Applied ***
Impairment of Assets
36
Applied
37
Applied
Intangible Assets
38
Applied
39
Applied *
Investment Property
40
Applied
Agriculture
41
N/A
BFRS no.
Status
N/A
N/A
Business Combinations
N/A
Insurance Contract
N/A
N/A
N/A
Applied
Operating Segments
Applied
N/A
Not Applicable
* In order to comply with certain specific rules and regulations of the local Central Bank (Bangladesh Bank)
which are different to BAS/BFRS, some of the requirements specified in these BAS/BFRSs are not applied.
Refer below for such recognition and measurement differences that are most relevant and material to the
Bank and the Group.
** This Standard regards a retirement benefit plan as a reporting entity separate from the employers of the
participants in the plan. Therefore, it is not applicable for the Banks annual report as it is the employer and
not the retirement benefit plan itself.
*** The objective of BAS 34 is to prescribe the minimum content of an interim financial report and to prescribe
the principles for recognition and measurement in complete or condensed financial statements for an interim
period and hence it is not applicable for annual financial statements. However, the Bank being a listed entity in
Dhaka and Chittagong Stock Exchanges regularly publishes Interim Financial Report complying with BAS 34.
New and amended standards adopted by the Bank and the Group
There are no new standards, amendments to standards and interpretations that are effective for the first time for
the financial year ended 31 December 2012 that have a significant impact on the Group and the Bank.
New and amended standards and interpretations not yet adopted by the Bank and the Group
A number of new standards, amendments to standards and interpretations are effective for annual periods
beginning from 1 January 2013 or later, and have not been applied in preparing these consolidated financial
statements. None of these is expected to have a significant effect on the consolidated financial statements of
the Group and the Bank. Although International Accounting Standards Board (IASB) has issued a new standard
(IFRS 9) along with related amendments to existing standards (IAS/BAS 32, 39) but none of these have been
adopted and/or endorsed locally as BAS/BFRS and as such any possible impact could not be determined.
Annual Report 2012 237
2.20
General
a)
These financial statements are presented in Taka, which is the Banks functional currency. Figures appearing
in these financial statements have been rounded off to the nearest Taka.
b)
The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided for
in the books of the Bank.
c)
Figures of previous year have been rearranged whenever necessary to conform to current years
presentation.
ii
Consolidated cash
Cash in hand
Prime Bank Limited (note-3a.1)
Prime Bank Investment Limited
Prime Bank Securities Limited
Prime Exchange Co. Pte. Ltd., Singapore
PBL Exchange (UK) Ltd.
PBL Finance (Hong Kong) Limited
1,464,103,675
41,057
10,817
10,823,556
1,474,979,105
14,117,939,937
14,117,939,937
16,187,166,252
12,032,573,269
12,032,573,269
13,507,552,374
1,971,441,919
88,061,657
2,059,503,576
1,414,850,909
49,252,766
1,464,103,675
10,816,492,170
2,881,505,675
13,697,997,845
Sonali Bank as agent of Bangladesh Bank (Local currency)
419,942,092
14,117,939,937
16,177,443,513
Reconciliation statements regarding Bangladesh Bank balance are given Annexure-A-1
9,433,960,795
1,854,968,231
11,288,929,026
743,644,243
12,032,573,269
13,496,676,944
3a.1
Cash in hand
In local currency
In foreign currency
3a.3
2011
2,059,503,576
7,346
4,895
9,710,498
2,069,226,315
3a
3a.2
Amount in Taka
Required reserve
Actual reserve maintained (note-3a.2)
Surplus / (deficit)
10,711,548,230
10,816,492,170
104,943,940
9,102,226,820
9,433,960,795
331,733,975
32,672,594,350
61,114,141,480
28,441,547,130
32,672,594,350
61,114,141,480
28,441,547,130
27,606,171,980
47,892,328,749
20,286,156,769
27,606,171,980
47,892,328,749
20,286,156,769
5,399,669,573
10,777,773,940
16,177,443,513
4,279,100,959
9,217,575,985
13,496,676,944
4a
4a.1
In Bangladesh
Current account
Agrani Bank Ltd., Principal Branch, Dhaka
Agrani Bank Ltd., Purana Paltan Branch, Dhaka
Agrani Bank Ltd., Bhairab Bazar, Kishoregonj
Agrani Bank Ltd., Mirzapur Branch, Mirzapur
AB Bank Ltd. Principal Branch, Dhaka
The City Bank Ltd, Dhaka
Dutch-Bangla Bank Ltd., Head office, Dhaka
Exim Bank Ltd., Motijheel Branch, Dhaka
Islami Bank BD Ltd., Local Office, Dhaka
Islami Bank BD Ltd., Jhikorgacha
Janata Bank Ltd., Local Office, Dhaka
Janata Bank Ltd., Ishwardi Branch
Janata Bank Ltd., Companygonj Branch
Janata Bank Ltd., Corporate Branch, Bogra
National Bank Ltd., Rangpur Branch
Pubali Bank Ltd., Dhaka Stadium Branch, Dhaka
Rupali Bank Ltd. ,Motijheel Branch, Dhaka
Sonali Bank Ltd., Rangpur Branch
Sonali Bank Ltd., Pabna Branch
Sonali Bank Ltd., Sunamganj Branch
Sonali Bank Ltd., Dinajpur Branch
Sonali Bank Ltd., Local Office, Dhaka
Sonali Bank Ltd., Narayangonj
Sonali Bank Ltd., Companygonj Branch
Sonali Bank Ltd., Thakurgaon Branch
Sonali Bank Ltd., Fakirapool Branch, Dhaka
Sonali Bank Ltd., Faridpur Branch, Faridpur
Sonali Bank Ltd., Narsingdi Branch
Sonali Bank Ltd., Satkhira
Standard Chartered Bank, Bangladesh
United Commercial Bank Ltd., Principal Branch, Dhaka
Off-shore Banking Units
Uttara Bank Ltd., Local Office, Dhaka
Less: Off-shore Banking Units
Amount in Taka
2011
2,059,503,576
14,117,939,937
2,749,635,259
40,969,705,594
1,217,357,114
61,114,141,480
1,464,103,675
12,032,573,269
5,124,479,346
29,271,172,459
47,892,328,749
251,389,642
90,411,112
185,845
341,986,599
90,452,210
251,534,389
377,477,308
3,213,517
4,792,616
385,483,441
3,361,069
382,122,372
1,392,741,405
37,476,454
24,335,982
12,170,729
1,466,724,570
1,718,258,959
1,138,637,962
32,812,263
10,765,643
15,266,326
1,197,482,195
1,579,604,567
251,389,642
1,392,741,405
1,644,131,047
377,477,308
1,138,637,962
1,516,115,270
477,554
94,739
3,500,000
5,778,964
2,997,108
274,719
62,733,959
1,696,291
7,347,825
1,000
13,565,017
3,288,797
1,292
13,123,089
1,167,259
9,562,393
3,045,665
23,417,396
17,178,093
6,932,833
599,503
63,022
10,542,555
16,509,210
3,621,134
7,448,342
166,621,451
176,341
381,765,551
166,621,451
215,144,100
10,488,705
4,007,817
2,500,450
1,160,770
2,998,108
275,515
58,223,470
1,727,900
6,797,821
1,000
73,566,147
5,187,818
328
1,292
16,458
16,199,476
18,624,590
22,173,332
8,568,058
9,385,030
8,220,571
24,871,469
12,182,617
1,001,000
6,064,601
11,562,209
31,028,027
6,716,871
4,417,636
1,867,771
237,669,828
177,841
587,684,526
237,669,828
350,014,698
Amount in Taka
2011
4a.2
295,926
2,112
15,599
18,971
5,028,074
30,705,174
950
12,433
36,079,239
286,140
1,003,195
15,599
18,970
4,827,406
21,136,783
950
12,210
27,301,253
63,492
36,109
66,702
166,303
61,297
35,416
64,644
161,357
251,389,642
377,477,308
327,947
708,632
12,070,342
8,633,221
10,439,935
621,790
14,492,798
56,046,201
429,879
54,469,945
251,018
5,033,160
5,927,202
7,927,789
18,116,329
32,118,229
151,564,812
84,844
50,043,048
3,755,849
10,295,770
375,130
37,666,149
527,580,408
9,429,091
19,477,472
3,376,263
6,730,567
57,071,561
2,641,429
9,146,985
5,800,084
55,539,532
132,751,323
8,715,241
34,428,476
38,652,955
6,644,484
1,002,246
4,191,187
3,292,821
4,884,087
7,318,508
9,394,222
17,997,373
440,662
29,960,877
618,873
1,972,977
3,791,449
12,742,153
33,567,690
27,949,005
91,803,153
2,541
17,085,340
32,738,763
538,287
10,361,238
445,616,228
12,947,048
7,754,862
1,276,803
7,287,220
10,710,884
1,915,572
16,321,338
23,666,718
43,555,382
206,634,472
2,891,913
16,786
4,073,036
3,226,925
32,444,839
1,392,741,405
1,138,637,962
Consolidated investments
Government
Prime Bank Limited (note-6a)
Prime Bank Investment Limited
Prime Bank Securities Limited
Prime Exchange Co. Pte. Ltd., Singapore
PBL Exchange (UK) Ltd.
PBL Finance (Hong Kong) Limited
Others
Prime Bank Limited (note-6a)
Prime Bank Investment Limited
Prime Bank Securities Limited
Prime Exchange Co. Pte. Ltd., Singapore
PBL Exchange (UK) Ltd.
PBL Finance (Hong Kong) Limited
Less: Inter-company transaction
6a
Amount in Taka
2011
1,607,885,505
16,630
36,079,239
149,673
1,644,131,047
1,488,652,660
16,136
27,301,253
145,221
1,516,115,270
44,936,697,967
44,936,697,967
34,395,651,805
34,395,651,805
4,733,737,225
1,399,569,819
741,051,850
6,874,358,894
3,808,530,984
3,065,827,910
48,002,525,877
4,776,646,818
1,441,557,511
696,472,977
6,914,677,306
3,794,500,832
3,120,176,474
37,515,828,279
9,939,151,576
35,007,440,491
4,723,843,125
49,670,435,192
17,022,719,665
17,390,298,140
4,759,280,818
39,172,298,623
1,075,511,325
381,038,068
1,293,085,866
2,749,635,259
1,217,357,114
483,460,154
393,210,802
4,247,808,390
5,124,479,346
-
5,105,900
40,964,599,694
40,969,705,594
44,936,697,967
2,634,000
29,268,538,459
29,271,172,459
34,395,651,805
Treasury Bill & Bond amounting to Tk. 2,625,785,597.52 was placed as lien against ALS from Bangladesh Bank on 30.12.2012
6a.1
6a.2
Amount in Taka
2011
15,000,000
171,430,361
201,661,111
54,663,022
18,152,329
150,112,500
3,808,530,984
314,186,918
4,733,737,225
49,670,435,192
20,000,000
171,595,403
201,661,111
151,813,187
50,402,795
200,150,000
3,794,500,832
186,523,490
4,776,646,818
39,172,298,623
4,539,349,166
615,376,253
955,636,877
1,022,318,981
15,098,785,391
27,438,968,524
49,670,435,192
721,734,628
418,719,985
1,752,799,503
2,920,653,204
9,334,444,098
24,023,947,205
39,172,298,623
850,000,000
6,652,563,435
18,007,844,578
5,779,949,329
3,702,083,149
34,992,440,491
850,000,000
925,083,228
8,305,142,769
4,264,474,884
3,025,597,258
17,370,298,139
2,168,556,000
2,656,291,708
677,658,330
469,653,165
5,972,159,203
40,964,599,694
5,288,669,108
6,300,427,787
163,754,791
145,388,634
11,898,240,320
29,268,538,459
100,000,000
(85,000,000)
15,000,000
100,000,000
(80,000,000)
20,000,000
171,595,403
19,805,000
(19,970,042)
171,430,361
171,595,403
19,805,000
(19,805,000)
171,595,403
Government bonds
Name of the bonds
HTM
3 years T & T bonds
2 years Bangladesh Government Islami Investment Bonds
5 years Bangladesh Government treasury bonds (7.80%-9.00%)
10 years Bangladesh Government treasury bonds(8.50%-11.74%)
15 years Bangladesh Government treasury bonds(8.69%-14.00%)
20 years Bangladesh Government treasury bonds(9.10%-13.29%)
HFT
3 years T & T bonds
2 years Bangladesh Government Islami Investment Bonds
5 years Bangladesh Government treasury bonds (10.60%-11.55%)
10 years Bangladesh Government treasury bonds(11.50%-11.80%)
15 years Bangladesh Government treasury bonds(11.80%-12.10%)
20 years Bangladesh Government treasury bonds(12.10%-12.28%)
6a.3
6a.4
Amount in Taka
2011
6a.5
201,661,111
23,000,000
(23,000,000)
201,661,111
201,661,111
23,000,000
(23,000,000)
201,661,111
6a.6
151,813,187
7,916,928
(75,000,000)
(30,067,093)
54,663,022
233,648,062
14,993,338
(75,000,000)
(21,828,213)
151,813,187
6a.7
50,402,795
2,771,904
(25,000,000)
(10,022,370)
18,152,329
77,553,649
5,125,216
(25,000,000)
(7,276,070)
50,402,795
6a.8
Orascom Bond
Principal
Add: Interest accrued during the year
Less: Principal redemption during the year
Less: Interest received during the year
Redeemable value
200,150,000
23,981,250
(50,000,000)
(24,018,750)
150,112,500
250,187,500
30,750,000
(50,000,000)
(30,787,500)
200,150,000
6a.9
Investment in subsidiaries
2,999,999,940
712,500,000
10,993,235
56,352,624
28,685,185
3,808,530,984
2,999,999,940
712,500,000
10,993,235
49,633,289
21,374,368
3,794,500,832
32,918,300
17,987,037
21,243,239
18,648,926
27,121,550
20,855,770
29,608,038
20,380
14,338,010
23,395,426
21,314,190
9,980,000
19,867,211
37,009,980
294,308,058
6,892,375
3,872,420
5,311,538
4,727,166
5,802,255
20,380
3,482,316
3,608,921
4,622,080
4,429,698
4,135,407
11,298,243
58,202,799
15,694,430
4,184,430
19,878,860
314,186,918
15,694,430
2,413,761
10,000,000
100,212,500
128,320,691
186,523,490
Investment in shares
Quoted
AB Bank Ltd.
Bank Asia Ltd.
BRAC Bank Ltd.
The City Bank Ltd.
DESCO
Dhaka Bank Ltd.
Eastern Bank Ltd.
Federal Insurance Company Bangladesh Ltd.
Jamuna Bank Ltd.
Lanka Bangla Finance Ltd.
M. I. Cement Factory Ltd.
MJL Bangladesh Ltd
National Bank Ltd.
NLI First MF
One Bank Ltd.
Titas Gas
Uttara Bank Ltd.
Unquoted as on 31 December 2012
Central Depository Bangladesh Limited (CDBL)
Investment in SWIFT
NLI First MF
9% Preference share of BRAC Bank
(Annexure -B)
Amount in Taka
Agreement date
Reversal date
Amount
30.12.2012
30.12.2012
30.12.2012
30.12.2012
01.01.2013
01.01.2013
01.01.2013
01.01.2013
2,424,510,000
1,500,000,000
2,374,310,059
1,105,530,248
Total
6a.11 (ii)
7,404,350,307
Agreement date
Reversal date
Amount
Total
6a.12
2011
Minimum
Outstanding during
the year
Maximum
outstanding during
the year
Daily average
outstanding during
the year
1,987,615,000
276,952,437
14,924,630,000
4,713,754,422
9,526,479,483
1,403,485,189
153,440,706,958
132,028,898,117
6,348,091,622
5,897,653,045
404,029,700
193,021,110
160,192,828,280
138,119,572,272
3,817,920,298
3,713,344,767
156,374,907,982
134,406,227,505
8,667,419,387
7,395,421,459
165,042,327,369
141,801,648,964
Amount in Taka
2011
38,485,351,177
22,797,516,730
30,396,292,698
3,615,477,187
17,724,668,458
679,994,650
11,303,238,002
8,186,003,760
915,407,506
988,948,830
8,118,559,532
10,229,248,428
153,440,706,958
153,440,706,958
36,375,509,274
17,533,655,691
22,300,158,827
3,634,699,533
20,912,413,500
701,741,974
10,938,785,871
7,556,800,614
750,396,269
1,278,065,027
7,156,823,052
2,889,848,485
132,028,898,117
132,028,898,117
5,499,981,492
4,617,715,263
1,949,160,113
7,449,141,605
160,889,848,563
2,201,816,628
6,819,531,891
138,848,430,008
160,889,848,563
138,848,430,008
6,168,499,440
620,359,575
3,974,248,435
10,763,107,450
150,126,741,113
1,908,248,000
538,695,707
2,563,399,971
5,010,343,678
133,838,086,330
36,933,559,434
34,024,057,815
44,801,021,311
42,229,227,840
2,901,982,163
160,889,848,563
25,469,685,668
36,007,310,917
42,281,182,417
33,027,948,535
2,062,302,471
138,848,430,008
3,283,525,539
11,226,832,700
585,251,400
15,095,609,639
6,909,605,879
8,186,003,760
1,572,495,257
5,576,138,596
2,246,981,454
9,395,615,307
1,838,814,693
7,556,800,614
7a.1
7a.2
7a.3
92,157,839,051
22,797,516,730
38,485,351,177
153,440,706,958
7,449,141,605
160,889,848,563
78,119,733,152
17,533,655,691
36,375,509,274
132,028,898,117
6,819,531,891
138,848,430,008
1,724,309,911
1,394,937,859
21,690,116,112
13,119,356,738
3,615,477,187
11,303,238,002
12,230,784,130
682,454,196
11,201,263
81,767,701,149
14,745,209,875
159,165,538,652
160,889,848,563
20,675,645,192
8,691,928,762
3,634,699,533
10,938,785,871
9,429,394,225
1,060,828,000
4,462,142
65,426,459,723
17,591,288,701
137,453,492,149
138,848,430,008
2,274,808,715
26,070,842,203
5,340,966,112
1,574,636,341
1,170,213,626
204,570,425
5,113,194,980
5,958,981,208
9,325,671,441
24,733,816,098
81,767,701,149
2,283,317,008
13,330,206,646
3,959,449,000
1,581,394,927
1,617,250,000
35,619,485
2,949,673,646
3,966,959,793
5,157,154,311
30,545,434,907
65,426,459,723
117,138,250,054
25,060,277,567
5,214,202,263
4,510,325,528
150,519,568
1,993,477,795
1,020,742,969
155,087,795,744
101,503,759,729
21,356,686,758
4,376,951,766
3,669,923,389
175,568,285
1,649,254,200
930,136,252
133,662,280,379
3,866,632,368
1,014,279,804
121,042,186
487,631,644
312,466,817
5,802,052,819
160,889,848,563
3,441,718,745
791,768,625
25,696,491
255,683,128
671,282,640
5,186,149,629
138,848,430,008
2011
Loans, advances and lease / investments under the following broad categories
Loans
Cash credits
Overdrafts
7a.5
Amount in Taka
7a.8
2011
107,324,320
160,782,524,243
160,889,848,563
330,736,692
48,203,108
138,469,490,208
138,848,430,008
115,788,853,865
3,010,813,582
242,063,041
5,131,043
6,466,293,749
7,566,583,262
1,408,779,115
1,853,220
10,412,344,557
15,987,133,129
160,889,848,563
89,543,240,119
3,924,012,894
1,696,097
5,323,242,682
10,550,622,940
549,884,386
992,852
10,767,830,041
18,186,907,997
138,848,430,008
7a.9
Amount in Taka
14
10
45,574,440,000
31,478,100,000
* 632,544,000
Nil
Not applicable
Total
Total
Funded
Non-funded
1,244.75
1,926.43
3,171.19
1,820.02
2,496.42
620.68
3,117.10
3,119.78
3,119.78
2,257.35
2,868.83
ENA Properties
1,358.82
1,419.79
2,778.61
1,773.42
895.51
2,668.93
1,968.12
2,510.44
3,959.03
6,469.47
6,650.62
2,065.97
2,320.25
4,386.21
3,927.25
Noman Group
2,214.00
591.73
2,805.73
3,816.30
3,816.30
3,555.68
2,942.00
1,772.17
4,714.17
2,043.73
2,101.97
739.15
2,841.12
3,115.86
634.78
5,051.07
5,685.86
3,270.65
23,158.86
22,415.58
45,574.44
31,478.10
* The amount relates to Bismillah Group. However, there are challanges which are under scrutiny of our Audit & Inspection and
Bangladesh Bank.
2011
131,232,363,211
105,407,519,801
26,399,477,686
10,767,830,041
3,258,007,666
22,673,080,166
160,889,848,563
138,848,430,008
1,735,511,174
1,399,400,001
vi) Loans / investments due from companies or firms in which the directors
of the Bank have interest as directors, partners or managing agents or
in case of private companies, as members
1,735,511,174
1,399,400,001
6,168,499,440
1,908,248,000
1,949,076,445
1,354,840,849
620,359,575
778,227,982
528,916,000
538,695,707
2,574,963,826
404,200,520
2,979,164,346
85,048,984
2,374,986,436
199,977,390
2,574,963,826
110,069,208
3,487,369,161
2,662,458,142
150,891,349,342
3,829,999,781
154,721,349,123
135,761,469,008
1,178,713,000
136,940,182,008
2,286,522,275
709,305,223
3,172,671,942
6,168,499,440
160,889,848,563
560,878,000
309,826,000
1,037,544,000
1,908,248,000
138,848,430,008
ii) Loans / investments considered good against which the Bank holds no
security other than the debtors personal guarantee
iii) Loans / investments considered good secured by the personal
undertaking of one or more parties in addition to the personal guarantee
of the debtors
iv) Loans / investments adversely classified; provision not maintained
there against
v) Loans / investments due by directors or officers of the banking
company or any of them either separately or jointly with any other
persons (note-7a.5b+7a.5c.vii)
Amount in Taka
Amount in Taka
2011
Status
Base
Rate
for provision
General Provision
Loans/investments (Excluding
SMA)
150,891,349,342
*Various
1,789,525,189
1,660,355,150
951,727,418
9,517,274
6,995,138
3,829,999,781
191,499,989
54,294,850
1,990,542,452
1,721,645,138
*General provision is kept @ 1% on general loans and advances / investments and 0.25% on small enterprise financing,
2% on certain other types of lending and 5% on consumer financing.
Status
Base
Rate
for provision
2,014,100,959
20
Specific provision
Sub-standard
Doubtful
Bad / Loss
402,820,192
83,732,000
377,075,126
50
188,537,563
118,590,000
1,354,840,849
100
1,354,840,849
528,916,000
1,946,198,604
731,238,000
3,936,741,056
2,452,883,138
3,983,765,735
2,563,399,971
47,024,679
110,516,833
Bangladesh Bank letter dated 28/02/2013 advised to classify few customer accounts in the current years financials,
accordingly we have considered those accounts under classification list. However, the Bangladesh Bank has extended
the time for provisioning on such accounts upto 30.06.2013, if fail to recover/reschedule.
7a.13
Rate
1%
33,064,522,464
330,645,225
289,634,163
Letter of guarantee
44,031,123,130
440,311,231
349,552,843
Letter of credit
30,602,172,770
306,021,728
297,066,633
1,076,978,184
936,253,639
1,080,000,000
940,000,000
3,021,816
3,746,361
Amount in Taka
182,223,605
619,020
20,978,451
12,667,127
7,339,256
22,095,540
779,085
7,412,477
733,109,329
25,440,651
507,721
2,122,930
440,993
3,715,619
413,947,087
683,550
93,893,494
385,000
6,167,879
3,132,100
26,740,776
270,000
33,187,610
212,146
6,592,865
1,978,190
480,606,863
132,755,491
16,137,047
120,302,380
6,357,500
3,348,640
9,802,051
763,638,244
2,012,365
4,117,086
100,648,973
8,150,000
40,825,730
1,410,176
727,696
1,290,144
3,763,525
49,272,272
857,888
42,195,523
1,604,025
5,329,753
5,465,265
19,891,879
21,903,286
20,615,350
2,414,000
2,432,493
1,447,800
11,403,213
3,487,369,161
2011
158,485,605
21,209,134
8,088,417
1,271,718
21,496,140
779,085
6,432,545
733,109,329
24,106,651
69,519
1,756,759
5,793,408
975,050
95,007,494
1,957,174
29,606,523
100,000
30,059,610
212,146
6,632,612
956,190
19,111,290
56,292,005
145,804,110
200,019,715
5,202,500
3,964,324
10,812,220
659,995,269
2,012,365
3,362,086
100,648,973
100,981,115
41,086,654
861,249
1,654,686
49,272,272
314,135
33,627,402
1,604,025
5,329,753
7,280,251
6,892,287
21,654,662
20,570,912
964,000
2,432,493
1,395,200
11,207,078
2,662,458,142
8a
8a.1
9a
6,819,531,891
575,889,568
7,395,421,459
5,499,981,492
1,949,160,113
7,449,141,605
4,617,715,263
2,201,816,628
6,819,531,891
2,975,545,974
1,938,801,812
2,534,793,819
7,449,141,605
3,344,016,715
1,912,325,394
1,563,189,782
6,819,531,891
4,363,349,270
22,809,876
8,710,077
5,095,255
18,875,772
964,587
4,419,804,836
3,975,458,490
27,599,950
10,142,395
2,623,453
17,065,888
513,704
4,033,403,880
2,200,907,410
761,773,433
694,293,990
1,157,551,128
325,821,316
1,558,890
5,141,906,167
2,195,907,410
543,182,545
617,233,126
1,032,982,037
216,602,023
1,535,005
4,607,442,146
31,690,384
31,690,384
211,498,500
34,070,094
245,568,594
132,396,714
17,092,221
149,488,935
2,946,983
1,637,587
1,410,371
5,994,941
5,425,160,086
1,214,728,832
4,210,431,254
2,946,983
1,607,562
1,410,371
5,964,916
4,794,586,381
970,149,429
3,824,436,952
226,740,063
28,235,444
254,975,507
102,057,491
152,918,016
4,363,349,270
197,956,054
28,235,444
226,191,498
75,169,960
151,021,538
3,975,458,490
The fixed assets recognised and measurements policy are described in note 2.2.4
2011
7,449,141,605
1,218,277,782
8,667,419,387
ATM
Hardware & equipment
Furniture & fixtures
Off-shore Banking Units
Furniture and fixtures
Office equipment and machinery
Vehicles
Amount in Taka
2011
10a
Amount in Taka
4,087,797,994
(37,500,000)
(239,999,995)
(1,128,039,537)
2,682,258,462
2,941,514,147
(37,500,000)
(560,463,177)
2,343,550,971
37,500,000
41,455,905
28,155,379
5,920,175
1,936,520
1,739,542
116,707,521
2,798,965,983
37,500,000
129,062,408
37,383,172
2,474,309
6,521,429
1,150,083
214,091,401
2,557,642,372
22,512,393
4,124,190,642
146,642,463
1,128,039,537
30,971,838
951,727,418
1,008,186,693
185,487,221
7,430,885
61,205,540
(2,440)
166,334,111
259,196,282
2,050,889
90,683,814
173,973,813
8,358,631,099
4,270,833,105
4,087,797,994
15,110,147
584,074
2,966,262,332
289,605,535
560,463,177
8,773,938
699,513,772
701,079,687
153,215,480
7,416,864
123,571,698
(121,465)
431,245,616
153,725,551
78,050,003
8,885,605
6,197,382,014
3,255,867,867
2,941,514,147
10a.1
Interest / profit receivable: Amount represents interest / profit receivable on loans, advances and lease / investments,
interest on term placement, Government securities & foreign currency balance, etc.
10a.2
Suspense account includes TT / DD in transit, advance against Land/ Building, advance against new branch, advance
against TA/ DA, printing and stationery, postage, suspense- others, clearing adjustment account etc.
10a.3
Sundry assets
Protested Bills
Less: Writeoff during the year
Receivable from/ (Payable to) branches
Others
1,141,024,661
(1,126,313,064)
(123,449)
159,385,664
173,973,813
7,454,399
1,431,206
8,885,605
At year-end management has performed detailed review of all protested bills and claims originated during the course of
banking operation, and upon assessing their recovery prospect, amounts which are considered to be not recoverable
have been written off after observing required formalities (note-13a.8).
10a.4
Rate
100%
100%
100%
100%
71,000,000
14,711,597
1,212,244
159,385,664
246,309,505
247,111,936
802,431
71,000,000
7,454,399
1,212,244
79,666,643
81,000,000
1,333,357
20,681,977,457
10,969,847,805
3,933,012,530
3,578,091,569
352,278,429
135,253,198
PBL bond
3,713,344,767
21,149,348,118
10,969,847,805
20,043,096,293
10,969,847,805
638,881,164
20,681,977,457
10,969,847,805
14,900,000,000
7,880,000,000
2,500,000,000
2,500,000,000
4,943,855
245,558,700
2,424,510,000
218,586,293
339,345,250
20,043,096,293
10,969,847,805
81,964
399,249,500
239,549,700
638,881,164
Outside Bangladesh
The Bank of Nova Scotia, Canada
Security against borrowings from other banks, financial institutions and agents
Secured (Treasury bills)
Unsecured
11a.4
3,817,920,298
11a.3
14,683,192,572
In Bangladesh
Call deposits
11a.2
24,967,268,416
Borrowings from other banks, financial institutions and agents of the Bank
In Bangladesh (note-11a.1)
11a.1
2011
11a
Amount in Taka
2,424,510,000
18,257,467,457
10,969,847,805
20,681,977,457
10,969,847,805
14,900,000,000
7,880,000,000
3,063,391,164
120,000,000
Maturity grouping of borrowings from other banks, financial institutions and agents
Payable on demand
Up to 1 month
Over 1 month but within 3 months
469,847,805
2,718,586,293
2,500,000,000
20,681,977,457
10,969,847,805
27,373,823,258
27,373,823,258
79,745,846
27,294,077,412
23,628,852,206
23,628,852,206
3,057,570
23,625,794,636
3,421,438,111
3,421,438,111
2,992,596,076
2,992,596,076
19,188,831,632
19,188,831,632
17,943,888,911
17,943,888,911
132,068,779,059
132,068,779,059
10,706,364
132,058,072,695
181,962,419,850
115,250,383,779
115,250,383,779
303,499
115,250,080,280
159,812,359,903
3,232,242,135
178,820,629,925
182,052,872,060
4,285,925,000
155,529,795,972
159,815,720,972
37,755,074
477,642,721
466,844,340
2,250,000,000
3,232,242,135
28,874,000
855,359,000
801,722,000
2,599,970,000
4,285,925,000
9,223,716,222
3,794,404,102
15,276,866
14,469,292,445
27,502,689,635
166,621,451
27,336,068,184
8,787,796,884
3,917,832,972
84,940,823
11,047,077,355
23,837,648,034
237,669,828
23,599,978,206
12a.1
2011
12a
Amount in Taka
12a.2
Amount in Taka
2011
3,305,503,224
4,425,077
111,195,865
313,592
318
35
3,421,438,111
2,847,424,899
5,179,467
139,677,288
313,592
830
2,992,596,076
18,711,188,911
17,088,529,911
80,358,078,398
7,944,713,645
601,207,853
40,447,934,823
129,351,934,719
178,820,629,925
182,052,872,060
70,570,841,509
7,136,150,650
305,972,722
33,835,726,898
111,848,691,779
155,529,795,972
159,815,720,972
37,755,074
27,336,068,184
27,373,823,258
28,874,000
23,599,978,206
23,628,852,206
3,421,438,111
3,421,438,111
477,642,721
18,711,188,911
2,992,596,076
2,992,596,076
855,359,000
17,088,529,911
19,188,831,632
17,943,888,911
2,716,844,340
3,401,692,000
129,351,934,719
132,068,779,059
111,848,691,779
115,250,383,779
182,052,872,060
159,815,720,972
6,085,186,554
3,982,771,999
20,572,395
84,798,208
Sundry deposits
F.C. held against back to back L/C
Sundry creditors
162,584,000
45,110,000
1,184,550,356
2,248,420,445
87,103,659
120,955,692
169,851,369
6,550,001
967,024,934
1,772,883,324
124,670,097
106,652,132
2,538,613,828
2,322,719,001
Others
1,528,828,909
1,100,448,440
447,366,607
14,469,292,445
408,707,850
11,047,077,355
12a.4
12a.5
12a.6
Amount in Taka
2011
9,261,471,296
1,918,883,163
3,627,782,651
15,276,866
14,469,292,445
3,421,438,111
32,714,144,532
8,816,670,884
1,794,388,892
3,680,163,144
84,940,823
11,047,077,355
2,992,596,076
28,415,837,174
17,269,948,469
82,608,078,398
8,411,557,985
40,447,934,823
601,207,853
149,338,727,528
182,052,872,060
16,149,500,019
73,170,811,509
7,937,872,650
33,835,726,898
305,972,722
131,399,883,798
159,815,720,972
3,331,169,000
3,232,242,135
6,281,049,000
3,627,782,651
165,580,629,274
182,052,872,060
3,182,610,000
4,285,925,000
6,641,406,000
3,680,163,144
142,025,616,828
159,815,720,972
66,084
173,417
275,745
974,487
4,388,608
5,878,340
285,444
122,972
150,122
789,500
2,005,578
3,353,616
37,755,074
524,327,155
2,250,000,000
420,159,906
3,232,242,135
28,874,000
935,531,000
2,599,970,000
721,550,000
4,285,925,000
28,653,601,490
39,295,756,247
36,174,586,587
47,903,487,671
23,365,881,479
5,878,340
175,399,191,814
22,650,135,954
34,968,176,650
42,721,335,350
42,616,651,942
9,577,546,384
3,353,616
152,537,199,896
3,421,438,111
3,421,438,111
182,052,872,060
2,992,596,076
2,992,596,076
159,815,720,972
13a
13a.1
Amount in Taka
2011
13,311,117,157
680,344,842
46,762,599
11,246,368
26,138,237
19,864,929
14,095,474,132
10,069,949,491
806,406,171
52,074,061
11,457,388
7,411,726
3,528,439
10,950,827,275
2,198,309,830
1,298,288
78,241,569
279,347,201
9,750,730
2,730,498,965
1,097,321,222
126,153,370
700
591,083,488
1,080,000,000
60,500,000
10,672,000
213,405,000
3,913,748,435
9,517,300
43,797,548
620,359,575
247,111,936
13,311,117,157
1,545,582,036
4,523,326
84,951,171
368,115,248
15,471,597
2,273,387,554
911,021,222
45,760,373
209,448
403,599,750
940,000,000
60,500,000
13,600,000
271,900,000
2,502,899,971
538,695,707
331,965
8,400,123
81,000,000
10,069,949,491
9,203,364,417
1,992,688,589
11,196,053,006
6,442,051,751
2,761,312,666
9,203,364,417
11,476,751,971
2,449,800,000
13,926,551,971
2,730,498,965
8,569,431,971
40,817,745
2,866,502,255
11,476,751,971
2,273,387,554
866,620,593
44,400,629
186,300,000
1,097,321,222
642,120,593
44,400,629
224,500,000
911,021,222
An amount of Tk. 186,300,000/- has been made against provision for deferred tax liability for the current year on account
of depreciation & accrued interest on Government Securities.
13a.4
13a.5
13a.6
13a.7
13a.8
Amount in Taka
2011
778,227,982
642,136,164
(404,200,520)
85,048,984
1,490,000,000
1,949,076,445
(199,977,390)
110,069,208
42,886,010
(42,886,010)
226,000,000
778,227,982
1,724,671,990
240,000,000
1,964,671,990
3,913,748,435
1,462,558,000
(42,886,010)
305,000,000
1,724,671,990
2,502,899,971
940,000,000
140,000,000
1,080,000,000
810,000,000
130,000,000
940,000,000
60,500,000
60,500,000
60,500,000
60,500,000
538,695,707
358,662,232
(116,255,174)
(160,743,191)
620,359,575
360,883,878
28,053,160
1,302,263,675
(1,101,726,798)
(50,778,208)
538,695,707
4,523,326
4,523,326
-
4,523,326
4,523,326
81,000,000
1,292,425,000
(1,126,313,064)
247,111,936
81,000,000
81,000,000
At year-end management has performed detailed review of all protested bills and claims originated during the course of
banking operation, and upon assessing their recovery prospect, amounts which are considered to be not recoverable
have been written off after observing required formalities (note-10a.3).
13a.9
7,454,973
3,064,950
10,519,923
769,193
9,750,730
8,286,528
8,708,312
16,994,840
1,523,243
15,471,597
Share capital
14.1
Authorized capital
14.2
2011
25,000,000,000
10,000,000,000
300,000,000
300,000,000
7,902,441,290
6,342,822,180
1,155,273,400
1,155,273,400
9,357,714,690
7,798,095,580
14.3
Amount in Taka
Given below the history of raising of share capital of Prime Bank Limited:
Accounting
year
Declaration
No of share
Value in capital
Cumulative
10,000,000
100,000,000
100,000,000
1995
Opening capital
1996
6,000,000
60,000,000
160,000,000
1997
4,000,000
40,000,000
200,000,000
1999
20,000,000
200,000,000
400,000,000
2000
10,000,000
100,000,000
500,000,000
2001
10,000,000
100,000,000
600,000,000
2002
10,000,000
100,000,000
700,000,000
2003
30,000,000
300,000,000
1,000,000,000
2004
40,000,000
400,000,000
1,400,000,000
2005
35,000,000
350,000,000
1,750,000,000
2006
52,500,000
525,000,000
2,275,000,000
2007
56,875,000
568,750,000
2,843,750,000
2008
71,093,750
710,937,500
3,554,687,500
2009
106,640,620
1,066,406,200
4,621,093,700
115,527,340
1,155,273,400
5,776,367,100
2010
202,172,848
2,021,728,480
7,798,095,580
2011
155,961,911
1,559,619,110
9,357,714,690
935,771,469
9,357,714,690
Amount in Taka
2011
9,357,714,690
2,241,230,396
67
6,839,527,566
2,225,185,837
20,663,658,556
7,798,095,580
2,241,230,396
63
5,772,509,105
2,931,809,566
18,743,644,710
1,964,671,990
1,080,000,000
60,500,000
21,017,432
125,801,783
2,000,000,000
5,251,991,206
25,915,649,762
1,724,671,990
940,000,000
60,500,000
129,669,272
125,801,783
2,500,000,000
4,523,326
5,485,166,371
24,228,811,081
346,356,371,815
205,102,656,431
20,510,265,643
5,405,384,119
12.64%
302,050,785,816
194,379,600,000
19,437,960,000
4,790,851,081
12.46%
Required
5%
5%
10.00%
Held
10.08%
2.56%
12.64%
Required
5%
5%
10.00%
Held
9.64%
2.82%
12.46%
Required
5%
5%
10.00%
9,357,714,690
2,241,230,396
6,839,527,566
2,072,227,283
20,510,699,935
7,798,095,580
2,241,230,396
5,772,509,105
2,779,682,107
18,591,517,188
1,964,671,990
1,080,000,000
60,500,000
9,859,846
125,801,783
2,000,000,000
5,240,833,619
25,751,533,554
1,724,671,990
940,000,000
60,500,000
121,579,868
125,801,783
2,500,000,000
4,523,326
5,477,076,967
24,068,594,155
345,020,328,117
202,339,782,174
20,233,978,217
5,517,555,337
12.73%
301,005,598,862
193,257,100,000
19,325,710,000
4,742,884,155
12.45%
Held
10.14%
2.59%
12.73%
Required
5%
5%
10.00%
Held
9.62%
2.83%
12.45%
Sponsors
Financial Institutions
Foreign Investors
Non- resident Bangladeshi
General Public
2012
Taka
3,795,534,470
1,882,371,040
356,952,120
50,310,430
3,272,546,630
9,357,714,690
2011
Taka
3,177,407,770
1,634,016,860
142,822,810
60,180,260
2,783,667,880
7,798,095,580
2012
%
40.56%
20.12%
3.81%
0.54%
34.97%
100.00%
2011
%
40.75%
20.95%
1.83%
0.77%
35.70%
100.00%
Shareholding range
Less than 500
500- 5,000
5,001 - 10,000
10,001 - 20,000
20,001 - 30,000
30,001 - 40,000
40,001 - 50,000
50,001 - 100,000
100,001 - 1,000,000
Over 1,000,000
14.7
2011
14.6
Amount in Taka
10,481
10,626
1,260
643
218
109
71
192
230
134
23,964
Taka
Share
1,825,733
17,788,086
8,910,148
9,013,459
5,374,212
3,742,274
3,172,749
13,387,464
69,481,241
803,076,103
935,771,469
Percentage
0.20%
1.90%
0.95%
0.96%
0.57%
0.40%
0.34%
1.43%
7.43%
85.82%
100.00%
Status
1
2
3
Chairman
Vice Chairman
Vice Chairman
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
Opening
Closing position
position
9,640,093
18,768,111
16,550,622
19,860,746
18,720,079
% of shares as at
31.12.2012
2.01
2.12
2.00
Director
18,983,935
2.03
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
21,644,226
12,409,969
10,120,151
18,736,602
22,150,681
18,798,231
25,973,071
18,741,962
29,322,129
18,716,136
18,719,181
34,563,056
18,716,670
25,283,258
23,478,344
Director
9,040,272
18,728,326
Depositor Director
Depositor Director
Independent Director
Managing Director
22,180
98,164,115
26,616
349,550,532
2.37
2.01
2.78
2.00
3.13
2.00
2.00
3.69
2.00
2.70
2.51
2.00 (Share holding
of East Cost Shipping
Lines Ltd.)
0.003
-
2,310,546,800
2,310,546,800
2,241,230,396
2,241,230,396
60
60
67
63
Balance on 1 January
5,772,509,105
4,419,319,123
Balance at 31 December
6,839,527,566
5,772,509,105
Minority interest
Share capital
Retained earnings
15
Statutory reserve
2011
Share premium
11,552,734 ordinary shares of Taka 200 each per share
14.9
Amount in Taka
16(a)
17
Revaluation reserve
Balance on 1 January
Addition during the year
Balance at 31 December
Less: Provision for deferred tax
69,316,404
1,067,018,461
69,316,404
1,353,189,982
19,719,692
243,159,736
5,315,965
4,765,890
8,198,026
7,274,926
42,034,865
259,338,544
243,159,736
145,134,659
(368,669,109)
94,406
19,719,692
1,416,526,260
161,342,461
(1,334,266,010)
(442,975)
243,159,736
296,004,196
296,004,196
(44,400,629)
251,603,567
296,004,196
296,004,196
(44,400,629)
251,603,567
5,015,711
8,694,724
8,801,182
4,137,992
The Bank revalued the assets of Land and Buildings details described in note 2.5
18
Balance at 31 December
141,298
453,880
(152,759)
(1,260,809)
4,510,188
8,058,632
(494,062)
8,694,724
(3,679,013)
5,015,711
170,837
8,694,724
8,694,724
19a
19.1
19.1.a
20
20.1
Amount in Taka
2011
2,068,548,270
326,488,306
33,096,718
30,646,814
(45,540,613)
47,761,808
2,461,001,303
(7)
(239,999,995)
4,184,536
2,225,185,837
2,788,376,831
602,129,749
4,495,828
27,172,736
(29,966,981)
3,315,705
3,395,523,868
(3)
(450,000,000)
(5,655,667)
(8,058,632)
2,931,809,566
2,779,682,107
2,698,992,305
(1,067,018,461)
(779,809,558)
(1,559,619,110)
2,072,227,283
(3,679,013)
2,068,548,270
2,824,985,571
(15,696,557)
3,634,129,909
(1,353,189,982)
(288,818,355)
(2,021,728,480)
2,779,682,107
8,694,724
2,788,376,831
440,253,439
152,129,749
4,495,828
21,517,069
(29,966,981)
3,315,705
591,744,809
53,809
591,798,618
498,742,180
93,624,615
12,723,070
(9,526,667)
595,563,198
483,917
596,047,115
2,779,682,107
(1,559,619,110)
(779,809,558)
440,253,439
440,253,439
2,824,985,571
(15,696,557)
(2,021,728,480)
(288,818,355)
498,742,179
498,742,179
26,979,335,910
26,979,335,910
28,963,416,330
28,963,416,330
Letters of guarantee
Prime Bank Limited (note-20a.2)
Prime Bank Investment Limited
Prime Bank Securities Limited
Prime Exchange Co. Pte. Ltd., Singapore
PBL Exchange (UK) Ltd.
PBL Finance (Hong Kong) Limited
20.3
20.4
20a
20a.1
20a.2
Letters of guarantee
Letters of guarantee (Local)
Letters of guarantee (Foreign)
Foreign counter guarantees
Less: Margin
Amount in Taka
2011
42,846,572,774
42,846,572,774
34,955,284,339
34,955,284,339
28,353,752,325
28,353,752,325
29,706,663,305
29,706,663,305
10,007,661,530
10,007,661,530
108,187,322,539
7,429,741,406
7,429,741,406
101,055,105,380
23,467,179,116
8,735,295,070
862,048,278
33,064,522,464
(6,085,186,554)
26,979,335,910
21,403,958,328
10,668,342,246
873,887,757
32,946,188,330
(3,982,771,999)
28,963,416,330
21,604,943,515
22,426,179,615
44,031,123,130
(1,184,550,356)
42,846,572,774
19,084,657,270
16,837,652,003
35,922,309,273
(967,024,934)
34,955,284,339
625,653,522
3,924,452,092
39,481,017,516
44,031,123,130
(1,184,550,356)
42,846,572,774
1,573,426,449
1,242,185,336
33,106,697,488
35,922,309,273
(967,024,934)
34,955,284,339
10,353,128,681
7,598,796,833
12,650,247,256
30,602,172,770
(2,248,420,445)
28,353,752,325
15,027,842,031
5,560,834,089
10,890,870,508
31,479,546,628
(1,772,883,324)
29,706,663,305
10,094,765,189
10,094,765,189
(87,103,659)
10,007,661,530
7,554,411,504
7,554,411,504
(124,670,097)
7,429,741,406
20a.4
Bills for collection is a Memorandum Item. However bills for collection is shown under contingent liability as per
Bangladesh Banks format for preparing financial statements.
20,398,468,504
1,305,873,890
1,327,082,199
254,477,345
467,592,509
1,123,570,867
1,361,846,771
1,017,962,459
652,092,975
30,902,234,192
24,207,082,957
17,410,286,124
3,635,158,345
1,027,527,828
278,429,742
22,351,402,039
8,550,832,153
12,647,982,518
2,933,379,256
974,998,715
223,772,560
16,780,133,049
7,426,949,909
22,821,500,674
3,806,588,945
497,413,554
11,241,156
92,555,220
117,149,862
27,346,449,411
146,099,780
27,200,349,631
16,708,767,903
2,625,327,712
257,036,124
756,849
788,267,323
76,442,500
20,456,598,411
58,129,907
20,398,468,504
1,305,873,890
1,305,873,890
1,326,938,557
143,642
1,327,082,199
2,673,292,974
2,057,720,184
28,570,418
16,312,942
21.3
27,200,349,631
21.2
2011
Income statement
Income:
Interest, discount and similar income (note-21.1)
21.1
Amount in Taka
Administrative expenses
Salary and allowances (note-27a)
430,873,148
367,568,017
127,601,535
132,056,013
11,448,000
9,192,067
304,366,321
5,152,571
575,000
53,278,378
3,635,158,345
298,731,953
3,569,924
522,500
47,705,656
2,933,379,256
22a
23
23a
Amount in Taka
22,821,500,674
861,132,742
58,355,301
7,696
66,752,109
23,807,748,522
2011
16,708,767,903
815,326,644
8,507,103
50,031
14,159,476
17,546,811,157
3,884,501,655
2,551,440,959
11,259,564
15,668,727
3,293,804,014
2,697,573,875
89,028,712
87,132,916
629,952,993
536,026,859
1,298,020,103
949,819,185
1,082,367,798
767,445,920
150,427,754
152,789,156
2,806,526,070
2,360,815,069
5,192,261,814
3,478,941,537
1,808,255,965
1,523,925,257
109,932,550
89,705,776
700,008,462
355,645,152
5,940,634
216,807,034
43,461,973
926,720,192
900,572,000
192,245,609
146,824,613
341,663,152
848,365
22,739,724,075
16,658,637,340
296,162
264,038
1,846,528
17,383,333
79,633,909
32,483,192
22,821,500,674
16,708,767,903
An amount of Tk. 28,053,160 has been restated under the head loans against trust receipts, lease finance/izara,
hire purchase and secured overdraft.
17,410,286,124
513,953,702
41,618,117
21,771,648
17,987,629,591
12,647,982,518
392,108,259
3,044,198
3,404,849
13,046,539,824
751,474,472
526,880,164
9,752,597,209
3,905,613,809
11,026,627
16,108,114
14,963,700,395
634,221,636
323,417,623
7,428,847,528
3,192,276,062
2,490,466
8,773,346
11,590,026,661
1,017,498,487
1,037,169,869
43,789,000
54,737,521
94,767
4,283,154
289,012,931
2,446,585,729
17,410,286,124
179,134,736
528,697,715
24,099,356
23,992,420
100,241
14,431,389
287,500,000
1,057,955,857
12,647,982,518
5,026,115
5,754,638
245,874
11,026,627
458,941
1,680,854
350,671
2,490,466
4,633,326,302
48,825,592
9,795,075
4,691,946,969
239,999,995
4,451,946,974
4,157,293,110
64,887,747
2,025,695
4,224,206,552
4,224,206,552
3,806,588,945
117,149,862
497,413,554
11,241,156
92,555,220
254,477,345
4,779,426,082
146,099,780
4,633,326,302
2,625,327,712
76,442,500
257,036,124
756,849
788,267,323
467,592,509
4,215,423,017
58,129,907
4,157,293,110
24a
2011
24
Amount in Taka
24a.1
Dividend on Shares included dividend income of Tk. 239,999,995.20 from its subsidiary, Prime Bank Investment
Limited.
25
25a
2,688,928,970
150,521,169
20,187,773
38,311,889
19,185,250
(15,204)
2,917,119,847
300,728,857
583,764,007
315,647,991
68,781,312
5,376
4,795,635
17,972,030
14,178,682
1,305,873,890
1,123,570,867
2,429,444,757
342,140,821
571,342,706
315,888,659
64,334,299
244,259
7,447,912
17,174,070
8,365,831
1,326,938,557
1,361,846,771
143,642
2,688,928,970
1,129,771,972
(6,201,105)
1,123,570,867
1,360,253,211
1,632,775
(39,215)
1,361,846,771
25a.1
2,429,444,757
59,713,167
52,419,765
52,597,120
33,937,621
24,627
2,628,137,057
Exchange gain
Exchange gain
Exchange gain-credit card
Less: Exchange loss
2011
Amount in Taka
1,017,962,459
652,092,975
45,785,187
142,828,652
320,683
294,300
859,572
-
37,050,816
328,617
3,446,744
1,101,978,717
798,991,288
6,304,685
201,195,485
220,364,527
88,912,804
39,803,095
135,174,145
35,206
149,696,068
3,862,312
172,614,132
1,017,962,459
5,457,287
60,034,388
197,319,531
55,246,951
34,549,851
100,527,229
111,233
106,866,438
50,520
91,929,547
652,092,975
26a.1
Miscellaneous earnings include syndication fee, commission from foreign remittance house / bank, notice fee
and sale proceeds of various items, etc.
26a.2
Inter-change fees
Others
27
16,812,014
882,734
18,873,535
13,472,340
2,203,976
39,803,095
34,549,851
2,673,292,974
2,057,720,184
22,108,347
34,528,694
13,586,783
19,563,859
20,152,371
19,415,520
31,718,629
4,737,211
15,287,014
16,600,039
5,551,162
2,780,540,201
2,131,614,239
1,091,326,503
809,496,228
444,844,951
98,711,190
1,914,102
227,000,000
2,673,292,974
773,582,044
580,941,549
482,885,431
68,284,661
2,026,499
150,000,000
2,057,720,184
28,570,418
339,295
110,800
2,020,048
1,309,766
41,201
32,391,528
16,312,942
415,014
38,200
828,514
627,619
337,667
18,559,956
18,810,119
9,760,299
28,570,418
9,963,755
6,349,187
16,312,942
127,601,535
1,520,411
1,162,653
1,502,209
1,079,758
1,600,084
134,466,650
132,056,013
1,886,219
633,364
2,447,401
862,564
165,402
138,050,963
13,378,380
39,380,812
54,895,205
18,930,111
1,017,027
127,601,535
17,456,614
48,587,510
46,216,884
18,457,953
1,337,052
132,056,013
304,366,321
1,472,157
202,144
1,458,981
798,382
181,151
308,479,135
298,731,953
2,383,560
462,178
504,960
807,192
214,629
303,104,472
31
186,694,137
7,998,996
107,582,930
65,291,954
367,568,017
30a
222,399,771
8,160,897
112,543,348
87,769,132
430,873,148
30
367,568,017
10,451,172
1,987,182
7,813,495
12,175,298
3,463,147
403,458,311
29a
430,873,148
11,274,109
3,449,462
10,667,015
12,652,718
5,366,562
474,283,014
29
2011
28a
Amount in Taka
Basic salary
Bonus
Utility allowance
Others
33
33a
Meeting fees
Other benefits
5,940,000
5,029,000
1,320,000
1,348,667
960,000
1,032,667
11,448,000
9,192,067
5,152,571
3,569,924
18,975
26,700
304,366,321
1,848,000
624,000
756,000
46,200
-
5,217,746
1,715,000
298,731,953
905,000
687,733
189,000
103,000
-
3,699,624
1,890,000
575,000
522,500
69,000
76,300
5,152,571
115,000
256,547
187,516
36
128,375,478
35
144,107,123
1,679,924
34a
93,472,472
76,884,003
3,437,571
97,835,991
62,423,207
319,455
3,569,924
62,700
206,010
295,156
149,839
1,522,518
1,312,505
575,000
522,500
575,000
522,500
331,708,120
271,478,216
2,510,397
1,121,309
6,351,755
2,233,559
6,603,129
2,169,052
2,760,602
2,647,076
345,856,437
284,073,883
292,004
55,101
37
37a
251,542,211
197,628,609
24,056,251
2,831,280
26,887,531
23,320,407
2,823,544
26,143,951
3,964,557
3,041,227
26,522,967
9,020,713
10,728,914
53,278,378
331,708,120
4,137,754
5,628,106
24,256,541
7,420,205
6,263,050
47,705,656
271,478,216
1,027,527,828
12,942,088
10,602,090
6,126,397
9,660,191
1,156,422
1,068,015,016
974,998,715
24,435,919
4,601,896
3,253,195
2,890,284
504,617
1,010,684,627
130,803,436
61,824,950
125,497,534
110,491,112
81,319,178
2,079,747
289,508
63,981
9,737,272
2,755
2,663,894
3,292,671
10,683,133
17,209,194
32,980,211
11,816,537
34,037,537
29,615,867
16,220,803
9,196,817
6,481,666
5,729,029
39,682,609
27,351,178
470,203
12,154,041
10,672,000
213,405,000
21,755,965
1,027,527,828
109,739,315
63,403,977
90,273,502
75,129,985
96,229,925
1,737,214
486,314
287,968
10,373,817
216,836
3,932,865
3,173,226
8,901,562
12,905,540
23,966,389
12,750,590
26,612,003
17,448,135
13,736,209
8,139,212
5,160,000
5,176,223
39,180,836
26,575,532
1,262,856
9,961,042
13,600,000
271,900,000
22,737,643
974,998,715
Provision for bad and doubtful loans and advances / investments-PBL (note-38a)
Provision for unclassified loans and advances / investments-PBL (note-38a)
Provision for off-balance sheet exposure-PBL (note-38a)
1,490,000,000
226,000,000
240,000,000
305,000,000
140,000,000
130,000,000
43,797,548
(74,084,236)
388,952,446
178,586,273
3,232,978
988,820
597,088
1,301,942,300
3,324,071,951
1,050,941,266
As per the Press release # SEC/Mukhopatro/2011/662 and SEC/Mukhopatro/2011/696, dated 29 January 2013 and 19 February
2013 respectively of Bangladesh Securities and Exchange Commission, 20% provision has been made by Prime Bank
Securities Limited while Prime Bank Investment Limited made 100% provision on diminution in value of investments and 20%
provision made on impairment of client margin loan.
38a
39
226,000,000
240,000,000
305,000,000
140,000,000
130,000,000
43,797,548
1,301,942,300
3,215,739,848
661,000,000
2,449,800,000
2,907,320,000
154,052,683
255,939,030
15,685,310
8,170,117
859,495
(250,096)
Current tax
8,803,282
599,735
2,629,200,771
3,171,778,786
186,300,000
224,500,000
(16,975)
665,885
Deferred tax
39a
1,490,000,000
186,283,025
225,165,885
2,815,483,796
3,396,944,671
2,449,800,000
2,907,320,000
186,300,000
224,500,000
2,636,100,000
3,131,820,000
Amount in Taka
2012
40
1,775,963,262
1,698,153,270
94,610,779
208,855,998
10,654,647
2,354,312
320,683
344,331
37,050,816
3,446,744
1,918,600,187
1,913,154,655
6,304,685
5,457,287
296,467,137
60,034,388
39,803,096
34,549,851
Retail Income
220,364,527
197,319,531
296,531,804
55,246,951
135,174,145
100,527,229
35,206
111,233
Incidental charges
41
149,696,068
106,866,438
455,110,150
1,046,060,296
Miscellaneous earnings
176,476,444
91,980,066
1,775,963,262
1,698,153,270
1,355,446,797
1,369,935,123
27,323,852
37,354,024
15,419,971
10,407,840
20,865,705
14,985,593
25,770,307
36,905,228
8,351,785
4,849,656
1,453,178,417
1,474,437,464
430,873,148
367,568,017
42
2011
28,570,418
15,067,449
127,601,536
132,056,013
5,152,571
3,569,924
763,249,124
851,673,720
1,355,446,797
1,369,935,123
(13,647,964,993)
(10,643,375,389)
14,030,152
39,402,808
87,583,771
(104,667,976)
9,227,793
(35,523,557)
(3,445,866)
511,307
4,584,909
(2,196,579)
566,986,901
(1,150,083)
(12,968,997,333)
(10,746,999,469)
41,560,619,018
30,044,160,955
185,487,221
153,215,481
Suspense account
166,334,111
431,245,616
Sundry assets
43
61,205,540
259,196,282
90,683,814
6,681,509,089
49,027,547,468
15,110,147
123,571,698
153,725,551
78,050,003
4,380,503,024
35,379,582,475
(13,647,964,993)
(10,643,375,389)
786,096,248
1,085,124,521
(6,205,212)
52,074,061
(129,311,326)
(211,020)
415,961,924
5,629,702
(5,137,884)
685,431,691
1,557,180,763
2,198,309,830
1,545,582,036
78,241,570
84,951,171
126,153,370
45,760,373
620,359,575
44
22,512,393
18,726,511
Amount in Taka
2012
2011
16,336,490
9,647,201
3,528,439
4,523,326
2,115,248
388,462,283
457,199,437
3,421,173,829
2,635,077,581
2,700,405,687
3,688,952,436
2.89
3.94
786,096,248
935,771,469
494,945,990
1,085,124,521
935,771,469
Earnings per share has been calculated in accordance with BAS - 33: Earnings Per Share (EPS). Previous years figures
have been adjusted for the issue of bonus shares during the year.
44a
2,698,992,305
3,634,129,909
2.88
3.88
935,771,469
935,771,469
Earnings per share has been calculated in accordance with BAS - 33: "Earnings Per Share (EPS)". Previous year's figures
have been adjusted for the issue of bonus shares during the year.
45
46
The number of employees engaged for the whole year or part thereof who received a total remuneration of Tk. 36,000 p.a.
or above were 2,544.
Assets pledged as security for liabilities of the Bank
7,404,350,307
7,443,355,097
Name
Status with
committee
Educational Qualification
Director
Chairman
Mr. M. A. Khaleque
Director
Member
Director
Member
Director
Member
Independent
Director
Member
Meeting No
Held on
76th
09.02.2012
77th
14.02.2012
78th
11.04.2012
79th
13.05.2012
80th
25.07.2012
81st
17.09.2012
82nd
21.10.2012
83rd
17.12.2012
Review of the Internal Audit Plan for the year 2012 and suggested area of further concentration.
ii)
Review of the Internal Control function and recommend before the Board for enhancement of the activities
streamlining operational risk.
iii)
Review of all branch and Head office inspection reports as submitted by the Internal Control and Compliance
Division and advice management for timely implementation and follow up.
iv)
Review of the draft consolidated financial statements along with the external auditors and the management and
recommending it to the Board of Directors for consideration.
v)
Review the scope and general extent of the annual audit, including an explanation of risk factors considered, any
limitations on scope of work.
vi)
Review with the top management of the organizations policies and procedures to prevent illegal or unethical
activities, the quality of its personnel and the adequacy of staffing, key accounting policies and procedures,
internal controls, significant areas of risk, legal or regulatory matters that may have an impact on the financial
statements, and any other matters that may affect financial reporting.
vii)
Review of the Management Letter issued by Bangladesh Bank & External Auditors and Management response
thereto as part of compliance.
viii)
Review the results of the audit with external auditors, including material findings, changes to accounting
principles, changes to audit plan, disputes with management, unresolved issues and access to information.
ix)
Submission of compliance report on the minutes to the Board along with its decisions for information and
concurrence of the Board on quarterly basis.
x)
d)
Recommend the appointment of external auditors of the bank considering suitability and all other compliances.
Steps taken for implementation of an effective internal control procedure of the Bank :
i)
Review performance and portfolios of SME, Agriculture and Policy on Green Banking which has been declared
a thrust sector for the economy of the country.
ii)
Review the functioning of Human Resources Development Centre (Training Academy) at periodical interval for
its significance and contribution towards transformation of the resources in to Human Capital.
iii)
Review the performance of the Islamic Banking Branches and recommended introduction of Sharia Compliant
software.
iv)
Directed & ensured health checking of the IT System and taking measures for up gradation for efficiency &
effectiveness.
v)
vi)
Advise Audit Teams to carry out Audit & Inspections of all Divisions of the Head Office including Prime Bank
Foundation alongside the branches and subsidiaries to ensure proper functioning as per laid down guidelines of
the Board and the regulators.
i)
Names of the Directors together with a list of entities in which they have Interest
ii)
Significant contracts where Bank is a party and wherein Directors have interest during the year 2012
Annexure-E
(Figure in Taka)
Name of party
Relationship
Nature of transaction
Nil
iii)
iv)
v)
vi)
Amount
Relationship
Nil
Amount
Common Director
6,355,000
Common Director
10,120,000
Lease agreement
Common Director
1,362,428
Lease agreement
Common Director
280,800
Lease agreement
Common Director
7,500,000
Nil
Nil
Nil
d) Amount of guarantees and commitments arising from other off-balance sheet exposures
Nil
Relation
Type of
Loan
Status of
the loan
Balance as on
31.12.2012 (Tk. In Lac)
Limit
Outstanding
Nil
Nil
Market Value Of
Collateral Security (Tk.
in Lac)
Nil
vii)
Business other than banking business with any relation concern to the Directors as per Section 18(2) of the Bank
Companies Act, 1991.
a)
Lease agreement made with the Sponsor Director & Depositor Director
Nature of contract
Branch Name
Remarks
Lease agreement
Jubilee Road
Branch
Lease period:
01.08.2012 to
31.07.2015
Lease agreement
ATM Booth
Jubilee Road Branch
Lease period:
12.10.2011 to
11.10.2021
b)
Branch Name
Remarks
Gulshan Branch
Service receiving companies where the Directors interest subsisted during the year
Name of party
Relationship
Nature of transaction
Bangla Trac
Common Director
Procurement of Generators
6,355,000
Common Director
Procurement of Vehicles
10,120,000
viii
49
Amount
Nil
SRO-336-AIN/2010 dated 5-10-2010 issued by Ministry of Labor and Employment and published in Bangladesh gazette
on 7-10-2010 declaring the status of business of certain institutions and companies (like mobile operating companies,
mobile network service providing company, all Govt. and Non-govt. money lending companies, all insurance companies
etc. ) as Industrial Undertakings for the purposes of Chapter-XV of the Bangladesh Labour Act, 2006 which deals with
the workers participation in companys profit by way of Workers Participation Fund and Welfare Fund (WPFWF). The
Bangladesh Labour Act, 2006 requires the Industrial Undertakings to maintain provision for workers profit participation
fund @ 5% on net profit. However, we have obtained legal opinion from Legal advisor in this regard where it has been
stated that Prime Bank Limited does not fall under this category. Therefore, no provision in this regard has been made in
the financial statements during the year under audit.
50
Chairman
Director
Director
Managing Director
Account
type
US$
US$
US$
EURO
US$
US$
GBP
US$
US$
US$
US$
US$
CHF
AUD
US$
EURO
US$
US$
EURO
US$
JP
JP
US$
EURO
US$
Currency
type
118,085.19
6,607,151.77
471,711.91
3,553.39
128,939.05
47,036.37
387,626.21
1,062.54
1,898,121.50
402,232.55
226,879.79
99,283.64
67,793.61
60,801.35
3,143.62
515,962.41
5,383.59
701,894.44
137,281.93
7,786.98
11,252,355.00
9,305,045.00
151,162.89
6,712.46
4,107.04
FC
amount
79.8499
79.8499
79.8499
105.5696
79.8499
79.8499
129.1013
79.8499
79.8499
79.8499
79.8499
79.8499
87.4301
82.7804
79.8499
105.5696
79.8499
79.8499
105.5696
79.8499
0.9278
0.9278
79.8499
105.5696
79.8499
Exchange
rate
2012
9,429,091
527,580,408
37,666,149
375,130
10,295,770
3,755,849
50,043,048
84,844
151,564,812
32,118,229
18,116,329
7,927,789
5,927,202
5,033,160
251,018
54,469,945
429,879
56,046,201
14,492,798
621,790
10,439,935
8,633,221
12,070,342
708,632
327,947
Equivalent
Taka
158,174.58
5,444,110.45
126,583.64
5,082.52
399,970.72
135,101.81
31.04
1,121,562.62
341,454.06
410,097.75
155,671.37
43,675.41
23,888.93
7,560.79
282,891.31
5,383.59
219,874.59
88,700.47
89,410.49
4,650,183.00
3,135,124.00
51,203.89
9,463.23
81,175.91
FC
amount
Balance with other banks-Outside Bangladesh (Nostro Account) of Prime Bank Limited
as at 31 December 2012
81.8529
81.8529
81.8529
105.9095
81.8529
81.8529
126.4627
81.8529
81.8529
81.8529
81.8529
81.8529
86.8097
82.5896
81.8529
105.9095
81.8529
81.8529
105.9095
81.8529
1.0503
1.0503
81.8529
105.9095
81.8529
Exchange
rate
2011
12,947,048
445,616,228
10,361,238
538,287
32,738,763
17,085,340
2,541
91,803,153
27,949,005
33,567,690
12,742,153
3,791,449
1,972,977
618,873
29,960,877
440,662
17,997,373
9,394,222
7,318,508
4,884,087
3,292,821
4,191,187
1,002,246
6,644,484
Equivalent
Taka
Annexure-A
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
CD
Total
CD
Account
type
US$
EURO
CAD
US$
EURO
SG$
US$
US$
US$
SEK
US$
US$
SAR
GBP
Currency
type
484,070.18
326,121.12
82,554.46
2,034,914.70
695,549.18
72,637.33
114,552.24
215,658.58
714,735.53
84,290.24
158,577.00
150,869.68
FC
amount
79.8499
105.5696
80.1062
81.8529
105.5696
65.2368
79.8499
79.8499
79.8499
12.2482
79.8499
79.8499
21.2910
129.1013
Exchange
rate
2012
1,392,741,405
38,652,955
34,428,476
8,715,241
132,751,323
55,539,532
5,800,084
9,146,985
2,641,429
57,071,561
6,730,567
3,376,263
19,477,472
Equivalent
Taka
396,379.83
30,468.70
50,979.54
205.08
27,305.51
3,278,013.08
532,117.76
289,137.20
199,398.41
161,782.68
130,855.28
89,028.24
58,500.00
61,321.34
FC
amount
Balance with other banks-Outside Bangladesh (Nostro Account) of Prime Bank Limited
as at 31 December 2012
81.8529
105.9095
79.8955
81.8529
105.9095
63.0365
81.8529
81.8529
81.8529
11.8404
81.8529
81.8529
21.8257
126.4627
Exchange
rate
2011
1,138,637,962
32,444,839
3,226,925
4,073,036
16,786
2,891,913
206,634,472
43,555,382
23,666,718
16,321,338
1,915,572
10,710,884
7,287,220
1,276,803
7,754,862
Equivalent
Taka
Annexure-A (contd)
Total
10,816,492,170
2,049,697
71,556,167
73,605,864
10,742,886,306
49,220,742
27,966,237
2)
77,186,979
10,820,073,285
2,881,505,675
1,735,633
1,735,633
2,879,770,042
104,118,057
499,303,475
603,421,532
3,483,191,573
Face
Value
No of
shares
Cost / present
value of
holdings
Average
cost
Quoted rate
per share as
on 31.12.12
Total market
value as at
31.12.12
Quoted:
1
AB Bank Ltd.
10
800,000
32,918,300
41.15
33.70
26,960,000
10
700,000
17,987,037
25.70
21.50
15,050,000
10
600,000
21,243,239
35.41
34.80
20,880,000
10
600,000
18,648,926
31.08
26.80
16,080,000
DESCO
10
349,550
27,121,550
77.59
72.10
25,202,555
10
700,000
20,855,770
29.79
24.80
17,360,000
10
762,000
29,608,038
38.86
31.70
24,155,400
10
2,241
20,380
9.09
27.20
60,955
10
600,000
14,338,010
23.90
21.70
13,020,000
10
10
350,000
23,395,426
66.84
59.00
20,650,000
11
10
700,000
21,314,190
30.45
22.10
15,470,000
12
NLI First MF
10
998,000
9,980,000
10.00
9.20
9,181,600
13
10
700,000
19,867,211
28.38
22.80
15,960,000
14
10
800,000
37,009,980
46.26
38.10
30,480,000
Sub Total
294,308,058
250,510,510
Unquoted:
1
Investment in SWIFT
Sub Total
Total
10
4,569,443
15,694,430
3.43
15,694,430
4,184,430
4,184,430
19,878,860
19,878,860
314,186,918
270,389,370
2,946,983
1,607,562
1,410,371
5,964,916
4,794,586,381
197,956,054
28,235,444
226,191,498
5,020,777,879
2,517,405,010
Software-Amortization
Software-Core Banking
Software-ATM
Sub-total
As at 31 December 2012
As at 31 December 2011
31,690,384
31,690,384
Off-shore
Furniture and fixtures
Office equipment and machinery
Vehicles
As at 31 December 2012
Sub-total
Leased Vehicles
As at 31 December 2012
132,396,714
17,092,221
149,488,935
ATM
Office equipment and machinery
Furniture and fixtures
As at 31 December 2012
2,505,029,178
28,784,009
28,784,009
666,354,778
30,025
30,025
637,570,769
79,101,786
16,977,873
96,079,659
5,000,000
218,590,888
77,060,865
125,001,090
115,784,357
23,885
541,461,085
Taka
Taka
2,195,907,410
543,182,545
617,233,126
1,032,982,037
216,602,023
1,535,005
4,607,442,146
Land
Building
Furniture and fixtures
Office equipment and machinery
Vehicles
Library books
As at 31 December 2012
Particulars
Additions
during the year
Opening balance
as on 01.01.12
COST
1,656,308
6,997,064
6,997,064
432,000
6,565,064
6,997,064
Taka
Disposals/
adjustments
during the
year
5,020,777,879
226,740,063
28,235,444
254,975,507
5,680,135,593
2,946,983
1,637,587
1,410,371
5,994,941
5,425,160,086
31,690,384
31,690,384
211,498,500
34,070,094
245,568,594
Taka
2,200,907,410
761,773,433
694,293,990
1,157,551,128
325,821,316
1,558,890
5,141,906,167
Total balance as
at 31.12.12
822,710,309
65,718,751
9,451,209
75,169,960
1,045,319,389
905,337
813,576
175,295
1,894,208
970,149,429
16,528,972
16,528,972
73,114,196
2,885,805
76,000,001
10,573,740
235,669,447
540,326,749
88,135,476
1,020,835
875,726,248
Taka
Opening
balance as on
01.01.12
23,772,560
24,056,251
2,831,280
26,887,531
78,429,742
256,615
185,560
282,076
724,250
251,542,211
6,014,754
6,014,754
33,284,158
2,645,313
35,929,471
14,312,215
41,886,296
113,761,985
38,802,110
111,130
208,873,736
Taka
Charge for
the year
1,163,479
6,962,808
6,962,808
397,745
6,565,063
6,962,808
Taka
Disposals/
adjustments
during the
year
DEPRECIATION
1,045,319,389
89,775,002
12,282,489
102,057,491
1,316,786,323
1,161,952
999,136
457,371
2,618,459
1,214,728,832
22,543,726
22,543,726
106,398,353
5,531,119
111,929,472
24,885,956
277,555,743
653,690,989
120,372,523
1,131,965
1,077,637,176
Taka
Total balance
as at 31.12.12
3,975,458,490
136,965,061
15,952,955
152,918,016
4,363,349,270
1,785,031
638,451
953,000
3,376,482
4,210,431,254
9,146,658
9,146,658
105,100,147
28,538,975
133,639,122
Taka
2,200,907,410
736,887,477
416,738,247
503,860,139
205,448,793
426,925
4,064,268,991
Annexure-C
2003-2004
2004-2005
2005-2006
2006-2007
2007-2008
2008-2009
2009-2010
2010-2011
2011-2012
2012-2013
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Total
2002-2003
2001
2013-2014
1995
to
2000
2012
Assessment
year
Accounting
year
13,926,551,971
2,449,800,000
2,866,502,255
2,285,000,000
1,735,000,000
1,012,449,724
1,015,000,000
592,362,815
557,500,000
482,287,856
348,903,919
312,590,120
268,743,630
3,317,922,403
1,076,933,945
481,412,744
346,638,537
482,287,856
348,903,919
312,590,120
268,743,630
411,652
Taka
Taka
411,652
Tax as per
assessment
order
Tax provision
as per accounts
11,192,801,601
1,000,000,000
2,193,417,798
2,033,288,558
1,432,194,785
915,627,471
1,019,804,475
737,606,389
470,158,263
438,405,004
342,757,186
337,138,495
247,455,962
24,947,215
Taka
Tax paid
(259,877,589)
(61,933,945)
110,950,071
210,861,463
Taka
Excess/
(shortage)
of provision
198,449,090
(102,313,148)
(57,129,470)
256,193,645
123,519,726
(43,882,852)
(6,146,733)
24,548,375
(21,287,668)
24,947,215
Taka
Excess/
(shortage)
of tax paid
Completed
Completed
Completed
Completed
Completed
Completed
Completed
Present status
Annexure-D
Name of Directors
Status with
PBL
Mr. M. A. Khaleque
Vice Chairman
Vice Chairman
Director
Director
Chairman
Annexure-E
%
of Interest
43.44
12.00
50.00
22.00
40.00
40.00
50.00
40.00
2.27
39.00
1.77
7.24
50.00
50.00
20.00
10.00
10.00
20.00
37.50
27.50
37.50
27.00
30.00
40.00
40.00
40.00
80.00
66.67
66.67
33.33
75.00
27.00
80.00
33.33
93.34
65.00
64.00
40.00
40.00
40.00
75.00
10.00
10.00
50.00
80.00
100.00
25.00
25.00
70.00
20.00
20.00
3.60
40.00
20.00
40.00
12.00
2.36
2.86
14.00
Sl
no.
6
Name of Directors
Status with
PBL
Director
Director
Director
Director
10
Director
11
Director
Annexure-E Continued
%
of Interest
30.00
Acorn Limited
25.00
25.00
50.00
29.25
29.25
51.00
37.50
20.00
60.00
28.00
34.00
41.50
35.00
48.00
34.00
30.00
50.00
20.00
60.00
10.00
25.00
44.00
50.00
75.00
50.00
25.00
16.00
25.00
25.00
4.00
4.90
1.01
10.00
75.00
33.33
28.00
12.50
95.00
50.00
9.92
42.00
0.13
26.66
68.81
19.23
3.33
3.33
4.55
3.33
62.00
3.33
16.00
12
Name of Directors
Status with
PBL
Director
40.00
15.00
35.00
20.00
Polyexprint Limited
30.00
Polytape Limited
1.00
Pragati Corporation
13
Director
100.00
2.00
2.00
0.67
20.00
Pedrollo NK Limited
10.00
15.00
15.00
20.00
Polyexprint Limited
15.00
Polytape Limited
1.00
Prima Enterprise
100.00
2.00
2.00
15
16
Director
Director
Director
% of Interest
6.60
50.00
50.00
10.00
99.00
99.00
99.00
99.00
99.00
99.00
51.00
95.00
99.00
43.75
43.75
20.00
20.00
EC Securities Ltd.
3.60
7.50
20.00
0.22
17
Depositor
Director
18
Depositor
Director
N/A
N/A
19
Independent
Director
N/A
N/A
N/A
N/A
0.75
8.46
0.52
5.87
Deposit types
Months
1.00
11.28
24
Months
0.98
11.06
12
Months
0.96
10.83
06
Months
0.92
10.38
03
Months
0.88
9.93
01
Month
0.88
9.93
1.20
13.54
1.05
11.85
1.02
11.51
1.02
11.51
1.20
13.54
1.05
11.85
1.05
11.85
1.05
11.85
Notes
2012
Amount in Taka
Annexure-G
2011
62,420,709
48,302,086
62,420,709
48,302,086
213,306
208,136
In Bangladesh
Outside Bangladesh
213,306
208,136
Government
Others
Investments
General investments etc
12,907,804,605
12,546,603,759
761,805,137
722,057,259
13,669,609,742
13,268,661,018
39,803,189
40,705,631
Other assets
2,523,594,919
3,219,095,091
16,295,641,865
16,576,971,962
200,000,000
1,883,521,658
2,266,710,947
11,735,023,423
12,105,269,265
10
2,498,804,441
1,781,332,574
128,706,901
145,661,582
16,246,056,423
16,298,974,368
49,585,442
77,997,594
16,295,641,865
16,576,971,962
Paid up capital
Statutory reserve
Other liabilities
Total liabilities
11
Revaluation reserve
Other reserve
16,295,641,865
16,576,971,962
Contingent liabilities
Notes
2012
Amount in Taka
2011
12
12.1
2,853,617,078
2,966,899,728
Letters of guarantee
12.2
967,587,167
1,197,088,153
12.3
1,056,519,014
2,149,395,458
12.4
167,679,643
162,690,924
5,045,402,902
6,476,074,263
Other commitments
5,045,402,902
6,476,074,263
Other commitments
Notes
Annexure-G (i)
Amount in Taka
2012
2011
Investment income
13
2,521,281,958
2,240,087,775
14
(1,663,610,420)
(1,449,728,938)
857,671,538
790,358,837
15
100,413,925
114,103,631
16
51,165,583
49,233,842
1,009,251,046
953,696,309
17
95,254,697
71,380,374
18
12,118,962
10,637,645
Legal expenses
19
211,615
175,870
20
9,397,036
8,476,519
21
5,346,313
6,019,816
Auditors fees
22
23
9,365,464
8,368,617
15,858,328
15,314,304
147,552,415
120,373,145
861,698,631
833,323,164
Specific provision
General provision
Other provisions
861,698,631
833,323,164
Zakat expenses
Other expenses
24
25
2012
Amount in Taka
2011
2,179,669,119
(1,661,136,450)
100,413,925
(95,254,697)
(5,346,313)
51,165,583
(40,199,922)
1,713,726,320
(1,230,889,597)
114,103,631
(71,380,374)
(6,019,816)
49,233,842
(42,972,956)
529,311,245
525,801,052
(400,948,724)
(27,059,588)
(1,813,162,649)
1,760,244,704
(28,412,152)
(509,338,409)
19,972,836
(1,917,534,519)
(2,723,942,943)
2,047,262,309
2,057,532,945
21,705,330
(514,976,877)
10,824,175
B)
(5,849,042)
(5,849,042)
(9,098,727)
(9,098,727)
C)
14,123,793
48,510,222
62,634,015
1,725,448
46,784,774
48,510,222
62,420,709
48,302,086
213,306
62,634,015
208,136
48,510,222
D)
E)
F)
G)
Restated balance
Cash dividend
Taka
Taka
Particulars
Statutory
reserve
Paid-up
Capital
Taka
Revaluation
reserve
Taka
Revaluation gain /
loss on investments
Taka
Retained
earnings
Taka
Total
Notes to the Financial Statements for the year ended 31 December 2012 (Please see PBL notes 1-2)
2012
1
Cash in hand
60,635,745
46,823,168
Sub-total (a)
62,420,709
48,302,086
Sub-total (b)
Required CRR and SLR of Islamic Branches are maintained at Head Office
Balance with other banks and financial institutions
In Bangladesh (note-2.1)
In Bangladesh
2011
i) In local currency
Amount in Taka
Investments
a) In Bangladesh
Retail investment
Izara (note-5.2)
b) Outside Bangladesh
Payable Inside Bangladesh
Inland bills purchased
1,784,964
1,478,918
62,420,709
48,302,086
213,306
208,136
213,306
208,136
15,599
15,599
12,433
12,210
18,971
47,003
63,492
36,109
66,702
18,971
46,780
61,296
35,416
64,644
166,303
161,356
213,306
208,136
997,689,634
692,899,102
4,450,284,608
3,929,345,733
3,058,092,259
3,189,486,454
673,512,624
640,978,677
775,652,281
74,271,401
125,249,403
2,753,052,395
1,811,287,478
112,671,581
100,878,183
2,069,056,551
12,907,804,605
12,546,603,759
12,907,804,605
12,546,603,759
757,557,115
686,031,463
4,248,022
761,805,137
13,669,609,742
36,025,796
722,057,259
13,268,661,018
Notes to the Financial Statements for the year ended 31 December 2012
2012
5.1
5.2
Izara
Lease rental receivable within 1 year
Lease rental receivable within 5 years
Lease rental receivable after 5 years
Total lease / Izara rental receivable
Less: Unearned interest receivable
Net lease / Izara finance
5.3
5.4
Amount in Taka
2011
4,401,738,103
7,508,376,868
997,689,634
12,907,804,605
761,805,137
13,669,609,742
4,734,872,470
7,118,832,187
692,899,102
12,546,603,759
722,057,259
13,268,661,018
311,317,837
908,084,691
1,219,402,528
545,889,904
673,512,624
176,836,829
520,683,207
18,088,000
715,608,036
74,629,359
640,978,677
125,167,295
100,534,203
1,690,146,448
112,903,107
1,392,961,486
775,652,281
1,080,027,038
82,108
7,709,101,131
783,568,848
13,544,442,447
13,669,609,742
832,450,507
929,531,086
1,205,731,803
1,811,287,478
1,556,251,000
5,985,171,614
847,703,327
13,168,126,815
13,268,661,018
192,491,753
3,934,920,022
536,801,685
101,150,019
841,183,375
13,561,298
305,297,467
1,783,695,512
7,709,101,131
200,615,006
3,478,845,642
275,232,159
122,539,541
32,488,190
483,672,026
168,190,814
344,746,492
878,841,745
5,985,171,614
9,601,679,320
3,873,823,138
194,107,284
13,669,609,742
9,912,388,992
3,126,517,903
229,754,123
13,268,661,018
13,669,609,742
13,268,661,018
Notes to the Financial Statements for the year ended 31 December 2012
2012
5.5
2011
11,973,280,644
11,638,549,621
48,261,564
59,826,451
44,061,714
121,756,469
683,671,820
717,920,046
Personal guarantee
619,475,122
497,187,982
Other securities
5.6
Amount in Taka
300,858,878
233,420,449
13,669,609,742
13,268,661,018
12,701,014,178
12,538,050,331
920,334,000
497,190,238
48,261,564
233,420,449
13,669,609,742
13,268,661,018
125,249,403
100,534,203
125,249,403
100,534,203
311,786,384
65,061,000
97,528,306
21,485,100
Particulars of investments
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
Classified investments
a)
b)
xi)
c)
66,572,306
14,843,000
d)
45,123,559
72,774,697
Opening Balance
Notes to the Financial Statements for the year ended 31 December 2012
2012
5.7
Amount in Taka
2011
Classification of investments
Unclassified
Standard including staff investment
13,156,437,869
13,111,506,018
201,385,489
92,094,000
13,357,823,358
13,203,600,018
189,449,012
33,615,000
Classified
Sub-standard
5.8
Doubtful
32,104,862
9,711,000
Bad / Loss
90,232,510
21,735,000
311,786,384
65,061,000
13,669,609,742
13,268,661,018
199,007,118
217,834,900
Status
Base
Rate
for provision
(%)
General Provision
Investments (Excluding SMA)
Special mention account (SMA)
13,156,437,869
*Various
201,385,489
10,069,275
4,109,000
209,076,393
221,943,900
*General provision is kept @ 1% on general investments and 2% on small enterprise financing and 5% on consumer
financing.
Specific provision
Sub-standard
103,318,662
20
20,663,732
Doubtful
20,584,535
50
10,292,268
3,831,500
Bad / Loss
66,572,306
100
66,572,306
14,843,000
97,528,306
21,485,100
306,604,699
243,429,000
306,604,699
243,429,000
34,956,999
29,668,997
Rate
1%
3,495,699,949
Letter of guarantee
1,004,840,480
10,048,405
11,970,882
Letter of credit
1,682,087,711
16,820,877
21,493,955
61,826,281
63,133,833
61,826,281
63,133,833
757,557,115
686,031,463
2,810,600
4,248,022
36,025,796
761,805,137
722,057,259
Notes to the Financial Statements for the year ended 31 December 2012
2012
7
Other assets
Stationery and stamps
Profit receivable
Advance income tax
Advance deposits and advance rent
Branch adjustments account
Migration account
Suspense account
Islamic transit account
Sundry assets
10
10.1
Amount in Taka
2011
7,752,957
14,099,795
11,834,066
5,701,027
414,533
811
39,803,189
7,951,751
13,361,043
11,377,346
6,944,037
1,070,333
1,120
40,705,631
39,803,189
39,803,189
40,705,631
40,705,631
39,803,189
40,705,631
306,281
341,612,838
104,062
2,257,019
1,000,059,777
683,312
1,178,571,630
2,523,594,919
362,381
526,361,454
3,673,148
2,644,960,989
(121,393)
107,795
43,750,717
3,219,095,091
200,000,000
200,000,000
1,811,423,535
14,434,632,888
16,246,056,423
3,624,586,184
12,674,388,184
16,298,974,368
477,642,721
333,780,814
1,000,000,000
1,811,423,535
855,358,468
769,257,716
1,999,970,000
3,624,586,184
Notes to the Financial Statements for the year ended 31 December 2012
2012
Sl No.
1
2
3
4
Name of Bank
Al Arafah Islami Bank Ltd
Bank Al-Falah
Social Islami Bank Ltd
Islami Bank Bangladesh Ltd
Sub Total
5
6
7
8
9
10
11
Type of Account
MSB
MSB
MSB
MSB
Amount in Taka
2011
53,202,185
11,231
418,318,007
6,111,298
477,642,721
11,168,569
584,671
837,689,105
5,916,123
855,358,468
MSND
MSND
MSND
MSND
MSND
20,759,196
2,049,567
7,809
288,840,944
22,123,298
333,780,814
22,307,715
1,978,848
8,730
235,597,457
509,364,966
769,257,716
MTDR
MTDR
1,000,000,000
1,000,000,000
1,999,970,000
1,999,970,000
1,811,423,535
3,624,586,184
576,646,553
131,027,883
591,119
1,790,538,886
2,498,804,441
510,694,300
81,493,770
8,091,331
1,181,053,173
1,781,332,574
126,215,349
70,594
2,420,958
128,706,901
1,405,878,937
141,131,970
70,594
4,459,018
145,661,582
1,411,352,479
7,152,959,411
628,218,239
2,620,064,959
10,401,242,609
14,434,632,888
16,246,056,423
6,658,510,363
418,056,563
2,205
2,259,472,418
9,336,041,549
12,674,388,184
16,298,974,368
2,498,804,441
2,498,804,441
1,781,332,574
1,781,332,574
128,706,901
128,706,901
145,661,582
145,661,582
477,642,721
1,405,878,937
1,883,521,658
855,358,468
1,411,352,479
2,266,710,947
Notes to the Financial Statements for the year ended 31 December 2012
2012
Amount in Taka
2011
11
2,769,227,716
9,336,041,549
11,735,023,423
12,105,269,265
16,246,056,423
16,298,974,368
4,461,883
5,222,897
Other liabilities
Expenditure and other payables
Contingent liabilities
12.1
12.2
1,333,780,814
10,401,242,609
45,123,559
72,774,697
49,585,442
77,997,594
2,532,366,798
2,454,716,959
931,935,821
794,887,752
31,397,330
44,771,351
3,495,699,949
3,294,376,062
(642,082,871)
(327,476,334)
2,853,617,078
2,966,899,728
379,740,629
903,232,150
625,099,851
330,055,946
Letters of guarantee
1,004,840,480
1,233,288,096
(37,253,313)
(36,199,943)
967,587,167
1,197,088,153
Money for which the Bank is contingently liable in respect of guarantees given favoring:
Directors or officers
Government
127,865,180
1,108,705
643,680,136
930,102,770
Others
Less: Margin
12.3
233,295,164
302,076,621
1,004,840,480
1,233,288,096
(37,253,313)
(36,199,943)
967,587,167
1,197,088,153
441,735,207
1,043,230,675
774,173,437
1,012,205,240
466,179,067
520,168,209
1,682,087,711
2,575,604,124
(625,568,697)
(426,208,666)
1,056,519,014
2,149,395,458
Notes to the Financial Statements for the year ended 31 December 2012
2012
12.4
13
Investment income
i) Income from general investment
Quard against TDR
Bai-Murabaha (cc pledge)
Bai-Muajjal (cc hypo)
Retail investment loan
Izara
Bai-Salam (packing credit)
Staff loan
Hire purchase
Other investments
Inland bills purchased
Sub-total (i)
ii) Profit on deposits with other Islamic banks
In Bangladesh
Out side Bangladesh
Sub-total (ii)
Grand total (i+ii)
14
15
Amount in Taka
2011
167,892,693
167,892,693
(213,050)
167,679,643
163,403,974
163,403,974
(713,050)
162,690,924
113,143,164
690,481,270
523,385,528
130,147,008
104,558,960
11,820,191
5,830,656
351,409,160
460,702,605
129,796,772
2,521,275,314
64,950,185
472,312,148
448,797,065
226,738,692
93,294,380
10,692,730
5,367,968
238,802,553
581,157,850
97,967,658
2,240,081,228
6,644
6,644
6,547
6,547
2,521,281,958
2,240,087,775
119,574,501
162,218,851
1,059,813,449
266,068,567
13,732
51,637,837
1,659,326,937
93,942,793
56,714,098
978,435,287
220,885,638
85,319,733
1,435,297,549
328
4,283,155
4,283,483
1,663,610,420
14,431,389
14,431,389
1,449,728,938
27,673,365
3,455,822
30,761,631
9,721,337
2,218,224
67,933
73,898,312
26,515,613
100,413,925
24,221,526
6,102,915
38,659,972
18,290,576
2,238,591
56,067
89,569,647
24,533,984
114,103,631
Notes to the Financial Statements for the year ended 31 December 2012
2012
15.1
24,533,984
533,210
429,377
4,621,903
5,178,300
19,359,896
2,647,483
1,550
4,324,463
3,276,224
4,123,454
3,844,192
17,167,226
17,144,303
51,165,583
49,233,842
Basic pay
47,632,946
35,724,009
Allowances
35,655,325
27,132,733
7,426,000
5,284,450
17
Bonus
Banks contribution to provident fund
4,540,426
3,239,182
95,254,697
71,380,374
7,354,877
6,681,659
10,617
23,866
Insurance
952,440
786,342
3,801,028
3,145,778
12,118,962
10,637,645
211,615
175,870
211,615
175,870
1,011,532
1,121,635
2,947,781
3,831,804
Data communication
4,897,397
2,856,468
484,704
635,714
55,622
30,898
9,397,036
8,476,519
Telephone - office
Telephone - residence
21
26,515,613
17,747,844
Incidental charges
20
24,533,984
19
26,515,613
18
2011
Exchange gain
Exchange gain
16
Amount in Taka
2,167,810
2,391,134
2,943,042
3,403,078
235,461
225,604
5,346,313
6,019,816
Notes to the Financial Statements for the year ended 31 December 2012
2012
22
23
Interest waived
6,751,484
5,039,864
Depreciation
Leased assets
Repairs
6,751,484
5,039,864
Building
343,938
133,357
170,805
980,779
1,401,163
1,383,913
96,221
130,480
Office equipment
Banks vehicles
Maintenance
601,853
700,224
2,613,980
3,328,753
4,888,973
4,681,490
Entertainment
2,223,296
3,249,146
Car expenses
4,850,965
3,414,506
21,737
32,364
Other expenses
9,365,464
8,368,617
800
600
Donations
Traveling expenses
755,884
940,660
825,063
743,527
Business development
5,140
202,750
182,200
Remittance charges
617,260
678,788
333,809
453,730
Exgratia
385,000
381,500
Miscellaneous expenses
25
2011
Fixed assets
24
Amount in Taka
752,791
15,858,328
550,653
15,314,304
(16,784,043)
(4,924,331,871)
150,321,477
150,321,477
5,066,065,659
5,066,065,659
44,269,225
(15,668,335)
28,600,890
1,182,137,746
1,182,137,746
(3,830,066)
(31,712,304)
1,009,251,046
1,009,251,046
1,009,251,046
(147,552,415)
861,698,631
861,698,631
16,295,641,865
16,295,641,865
12,242,697,027
(4,793,563,499)
(3,215,739,848)
4,233,393,680
(2,636,100,000)
1,597,293,680
211,414,920,689
211,414,920,689
Islamic Banking
328,411,240
(154,052,683)
174,358,557
7,939,845,680
7,939,845,680
(68,589,709)
(104,502,037)
79,811,596
79,811,596
79,811,596
PBSL
12,702,744,319
(460,047,292)
12,242,697,027
4,944,770,834
(2,636,100,000)
2,308,670,834
222,644,496,895
222,644,496,895
167,105,520
13,084,842,553
(3,215,739,848)
501,502,986
167,105,520
501,502,986
501,502,986
PBIL
167,105,520
Off Shore
Banking Units
13,084,842,553
13,084,842,553
PBL (Conventional
&
Islamic Banking)
Inside Bangladesh
* Prime Exchange Company Pte Ltd Singapore, PBL Exchange (UK) Ltd & PBL Finance (Hong Kong) Ltd
Income
Less: Inter segmental income
Total income
Operating profit (Profit before unallocated
expenses and tax)
Allocated expenses
Provision against loans and advances, Others
Profit / (loss) before tax
Income tax including deferred tax
Net profit
Segment assets
Segment liabilities
Particulars
Income
Less: Inter-segmental income
Total income
Operating profit (Profit before unallocated
expenses and tax)
Allocated expenses
Particulars
I) Geographical Segment
(14,795,622)
(14,795,622)
45,148,274
45,148,274
(48,733,244)
33,937,621
33,937,621
33,937,621
PBL
Exchange
(UK) Ltd.
(120,802,317)
48,116,707
(9,662,777)
38,453,930
1,336,503,295
1,336,503,295
168,919,024
168,919,024
168,919,024
9,096,886
(859,495)
8,237,391
58,202,382
58,202,382
(43,828,614)
52,925,499
52,925,499
52,925,499
Prime Exchange
Co. Pte. Ltd.
(Singapore)
(100,302,013)
(108,332,103)
372,680,466
(169,721,018)
202,959,447
9,121,983,426
9,121,983,426
581,314,582
581,314,582
581,314,582
** Investment
(PBIL+PBSL)
53,815,443
(8,803,282)
45,012,161
1,233,152,640
1,233,152,640
(28,240,460)
82,055,903
82,055,903
82,055,903
PBL Finance
(Hong Kong)
Ltd.
Outside Bangladesh
(5,162,220,245)
(3,324,071,951)
5,515,889,483
(2,815,483,796)
2,700,405,687
238,169,049,276
238,169,049,276
14,002,181,679
14,462,228,971
(460,047,292)
14,002,181,679
Total
5,515,889,483
(2,815,483,796)
2,700,405,687
238,169,049,276
238,169,049,276
(5,162,220,245)
(3,324,071,951)
14,002,181,679
14,002,181,679
14,002,181,679
Total
Annexure-H
52,547,250
3,421,438,111
28,691,356,564
Deposits (note-12a.6)
17,963,391,164
48,610,138,690
Liabilities:
84,512,358
Other assets
45,146,024
36,933,559,434
4,539,349,166
Investments (note-6a.1)
1,607,902,135
5,399,669,573
Up to 1 month
Assets:
Particulars
(3,719,543,112)
40,129,883,527
309,800,125
39,820,083,402
36,410,340,415
1,644,535,061
90,292,047
34,024,057,815
615,376,253
36,079,239
1-3 months
7,972,751,295
40,960,051,687
2,535,465,100
38,424,586,587
48,932,802,982
1,747,361,929
406,314,211
44,801,021,311
1,977,955,858
149,673
3-12 months
2,921,432,681
57,726,169,084
6,683,935,214
48,323,647,577
2,718,586,293
60,647,601,764
611,388,646
2,708,199,887
42,229,227,840
15,098,785,391
1-5 years
15,130,992,441
27,101,129,287
3,729,369,468
23,371,759,819
42,232,121,728
1,113,397,101
2,901,982,163
27,438,968,524
10,777,773,940
Above 5 years
20,787,038,905
216,045,966,674
13,311,117,157
3,421,438,111
178,631,433,949
20,681,977,457
236,833,005,579
4,087,797,994
4,363,349,270
160,889,848,563
49,670,435,192
1,644,131,047
16,177,443,513
Total
Annexure-I
Investments
615,376,253
50,265,107,535
(1,575,439,036)
188,921,696
3,421,438,111
28,691,356,564
Deposits
Other accounts
17,963,391,164
48,689,668,499
Liabilities:
44,138,925
Other assets
45,146,024
(4,562,589,611)
40,295,456,826
435,925,634
39,729,631,192
129,900,000
35,732,867,215
858,904,089
90,292,047
34,132,215,587
4,539,349,166
36,969,612,025
36,079,239
1-3 months
1,682,030,047
5,409,392,312
Up to 1 month
Cash in hand
Assets:
Particulars
-
6,872,749,277
41,549,773,367
2,787,716,119
38,424,586,587
337,470,661
48,422,522,644
912,608,276
406,314,211
45,125,494,626
1,977,955,858
149,673
3-12 months
5,639,518,155
57,995,775,085
6,953,541,215
48,323,647,577
2,718,586,293
63,635,293,240
319,314,693
2,708,199,887
45,508,993,269
15,098,785,391
1-5 years
14,587,568,391
27,101,129,287
3,729,369,468
23,371,759,819
41,688,697,678
664,000,000
1,169,852,667
3,306,011,862
25,771,059,209
10,777,773,940
Above 5 years
20,961,807,176
217,207,242,100
14,095,474,132
3,421,438,111
178,540,981,739
21,149,348,118
238,169,049,276
2,798,965,983
4,419,804,836
165,042,327,369
48,002,525,877
1,718,258,959
16,187,166,252
Total
Annexure-I (1)
Annexure-J
(Taka in million)
Sl no.
Particulars
Paid-up capital
2012
2011
9,357.71
7,798.10
25,915.65
24,228.81
25,751.53
24,068.59
5,405.38
4,790.85
5,517.56
4,742.88
Total assets
236,833.01
199,950.49
Total deposits
182,052.87
159,815.72
160,889.85
138,848.43
108,187.32
101,055.11
10
88.38%
86.88%
11
Percentage of classified loans / investments against total loans and advances / investments
3.83%
1.37%
12
2,698.99
3,634.13
13
6,168.50
1,908.25
14
1,949.08
778.23
15
47.02
110.52
16
Cost of fund
8.75%
8.15%
17
212,204.41
179,536.84
18
24,628.59
20,413.65
19
10.43%
13.94%
20
1.24%
2.05%
21
4,633.33
4,157.29
22
2.88
3.88
23
2.88
3.88
24
12.83
11.46
Notes
2012
USD
2011
Taka
Taka
2,086,683
166,621,451
237,669,828
5,384
429,879
440,662
2,092,067
167,051,330
238,110,490
Outside Bangladesh
Loans and advances
Loans, cash credits, overdrafts, etc.
40,540,098
3,237,122,791
2,934,957,412
20,763,690
1,657,978,582
535,408,180
61,303,788
4,895,101,373
3,470,365,592
47,510
3,793,678
4,582,311
Other assets
1,494
119,278
137,307
63,444,859
5,066,065,659
3,713,195,700
59,649,290
4,762,989,842
3,211,821,032
1,934,588
154,476,693
211,063,517
Bills payable
Term deposits
1,934,588
154,476,693
211,063,517
1,860,981
148,599,124
290,311,151
63,444,859
5,066,065,659
3,713,195,700
Paid up capital
Statutory reserve
Other reserve
63,444,859
5,066,065,659
3,713,195,700
Other liabilities
Total liabilities
10
Notes
USD
2012
2011
Taka
Taka
11
12,606
1,006,562
26,979,289
227,296
18,149,544
18,604,817
6,645,924
530,676,369
876,183,273
10,033,474
801,171,904
153,267,389
16,919,300
1,351,004,379
1,075,034,768
Other commitments
Documentary credits and short term trade -related transactions
Other commitments
1,351,004,379
1,075,034,768
16,919,300
Notes
2012
USD
2011
Taka
Taka
Interest income
12
2,372,600
194,204,867
136,707,445
13
(685,986)
(56,150,131)
(38,616,994)
1,686,614
138,054,736
98,090,451
Net interest
Commission, exchange, brokerage, etc.
14
279,844
22,906,115
29,568,129
15
75,069
6,144,669
6,668,604
2,041,527
167,105,520
134,327,184
16
149,214
12,213,631
9,215,024
17
12,080
988,779
766,946
244
19,975
27,047
Legal expenses
Postage, stamp, telecommunication, etc.
18
2,011
164,596
148,704
19
2,890
236,585
177,140
Auditors fees
Depreciation and repair of Banks assets
20
9,440
772,677
709,091
Other expenses
21
29,172
2,387,800
3,782,774
205,051
16,784,043
14,826,724
1,836,476
150,321,477
119,500,460
Specific provision
General provision
Other provision
1,836,476
150,321,477
119,500,460
Current tax
Deferred tax
1,836,476
150,321,477
119,500,460
2012
USD
Taka
2011
Taka
2,372,600
194,204,867
136,707,445
Interest payments
(685,986)
(56,150,131)
(38,616,994)
279,844
22,906,115
29,568,129
(149,214)
(12,213,631)
(9,215,024)
(19,398)
(1,587,747)
(1,358,680)
75,069
6,144,669
6,668,604
(27,591)
(2,258,415)
(3,591,849)
1,845,325
151,045,727
120,161,631
(18,906,200)
(1,509,658,150)
2,186,052,718
184
14,669
(979)
(643,983)
(51,421,947)
(212,046,262)
(3,522,238)
(281,250,365)
(5,310,901)
(23,072,237)
(1,842,315,793)
1,968,694,576
(21,226,912)
(1,691,270,066)
2,088,856,207
(376)
(30,025)
(1,682,366)
(376)
(30,025)
(1,682,366)
20,410,350
1,629,764,406
(1,916,881,711)
20,410,350
1,629,764,406
1,916,881,711)
C)
D)
(816,938)
(61,535,685)
170,292,130
E)
(9,523,475)
(243,265,280)
F)
2,909,005
238,110,490
311,083,640
G)
2,092,067
167,051,330
238,110,490
2,092,067
167,051,330
238,110,490
2,092,067
167,051,330
238,110,490
Notes to the Financial Statements for the year ended 31 December 2012
1.1
Bank. The Bank obtained the Off-shore Banking Unit permission vide letter no. BRPD (P) 744 (84)/2001868 dated 19 March 2001. The Bank commenced the operation of its Off-shore Banking Unit from March
15, 2007. Presently the Bank has 3 (Three) units in Dhaka, Adamjee EPZ and Chittagong.
1.1.1
Principal activities
The principal activities of the units are to provide all kinds of commercial banking services to its customers
through its Off-shore Banking Units in Bangladesh.
1.2
1.2.1
Basis of accounting
The Off-shore Banking Units maintain its accounting records in USD from which accounts are prepared
according to the Bank Companies Act 1991, Bangladesh Accounting Standards and other applicable
directives issued by Bangladesh Bank.
1.2.2
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised and in any future periods affected.
1.2.3
dates of respective transactions as per BAS-21 The Effects of Changes in Foreign Exchange Rates.
Foreign currency balances held in US Dollar are converted into Taka at weighted average rate of inter-bank
market as determined by Bangladesh Bank on the closing date of every month. Balances held in foreign
currencies other than US Dollar are converted into equivalent US Dollar at buying rates of New York closing
of the previous day and converted into Taka equivalent.
b) Commitments
Commitments for outstanding forward foreign exchange contracts disclosed in these financial statements
are translated at contracted rates. Contingent liabilities / commitments for letter of credit and letter of
guarantee denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling
on the balance date.
Notes to the Financial Statements for the year ended 31 December 2012
1.2.4
1.2.5
Reporting period
These financial statements cover from January 01 to December 31, 2012.
1.3
1.3.1
1.3.2
Loans and advances of Off-shore Banking Units are stated in the balance sheet on gross basis.
b)
Interest is calculated on a daily product basis but charged and accounted for on accrual basis. Interest is not
charged on bad and loss loans as per guidelines of Bangladesh Bank. Records of such interest amounts
are kept in separate memorandum accounts.
1.3.3
All fixed assets are stated at cost less accumulated depreciation as per BAS-16 " Property, Plant and
Equipment". The cost of acquisition of an asset comprises its purchase price and any directly attributable
cost of bringing the assets to its working condition for its intended use inclusive of inward freight, duties and
non-refundable taxes.
b)
Depreciation is charged for the year at the following rates on reducing balance method on all fixed assets.
c)
Rate
10%
Office equipment
20%
For additions during the year, depreciation is charged for the remaining days of the year and for disposal
depreciation is charged up to the date of disposal.
1.4
1.4.1
Notes to the Financial Statements for the year ended 31 December 2012
a)
Provident fund
Provident fund benefits are given to the permanent staffs of the OBU under the Provident Fund Rules of
the Bank. The Commissioner of Income Tax, Taxes Zone - 5, Dhaka has approved the Provident Fund
as a recognized provident fund within the meaning of section 2(52) read with the provisions of part - B
of the First Schedule of Income Tax Ordinance 1984. The recognition took effect from 07 July 1997. The
Fund is operated by a Board of Trustees consisting six members (03 members from management and
other 03 members from the Board of Directors) of the Bank. All confirmed employees of the Units are
contributing 10% of their basic salary as subscription to the Fund. The units also contribute equal amount
of the employees contribution. Interest earned from the investments is credited to the members account
on yearly basis.
b)
Gratuity fund
Prime Bank operates an unfunded gratuity scheme, provision in respect of which is made annually covering
all its permanent eligible employees. Actuarial valuation of gratuity scheme had been made to assess the
adequacy of the liabilities provided for the scheme as per BAS-19 Employee Benefits . Gratuity fund for
Off-shore Banking Units are maintained with Head Office, Prime Bank Limited.
c)
Welfare fund
Prime Banks employees welfare fund is subscribed by monthly contribution of the employees. The Bank
also contributes to the Fund from time to time. The Fund has been established to provide coverage in the
event of accidental death or permanent disabilities of the employees. Disbursement from the fund is done
as per rules for employees welfare fund. Welfare fund for Off-shore Banking Units are maintained with
Head Office, Prime Bank Limited.
d)
Incentive bonus
Prime Bank started a incentive bonus scheme for its employees. 10% of net profit after tax is given by the
Board of directors in every year for its employees. These bonus amount distributed among the employees
as per performance. The bonus amount are paid annually, normally first quarter of every following year and
the cost are accounted for the period to which it relates. Provision for incentive bonus for Off-shore Banking
Units is kept with Head Office, Prime Bank Limited.
1.4.2
1.5
Revenue recognition
1.5.1
Interest income
In terms of the provisions of the BAS-18 Revenue, the interest income is recognized on accrual basis.
1.5.2
1.5.3
General
a)
These financial statements are presented in Taka, which is the Banks functional currency. Figures appearing
in these financial statements have been rounded off to the nearest Taka.
b)
Assets and liabilities & income and expenses have been converted into Taka currency @ US$1 = Taka
79.8499 (closing rate as at 31st December 2012) and Tk.81.8532 (average rate which represents the
year end).
Notes to the Financial Statements for the year ended 31 December 2012
USD
3
2012
2011
Taka
Taka
2,086,683
5,384
2,092,067
166,621,451
429,879
167,051,330
237,669,828
440,662
238,110,490
3.1
In Bangladesh
2,086,683
166,621,451
237,669,828
3.2
429,879
440,662
14,608,301
12,387,244
635,301
12,909,252
40,540,098
1,166,471,360
989,120,208
50,728,723
1,030,802,500
3,237,122,791
487,692,056
1,227,785,543
122,598,061
1,096,881,752
2,934,957,412
12,816,999
1,023,436,123
7,946,691
20,763,690
61,303,788
634,542,459
1,657,978,582
4,895,101,373
535,408,180
535,408,180
3,470,365,592
12,816,999
7,946,691
20,763,690
1,023,436,123
634,542,459
1,657,978,582
535,408,180
535,408,180
26,657
9,366
11,487
47,510
2,128,598
747,842
917,238
3,793,678
2,438,607
921,382
1,222,322
4,582,311
1,339
155
1,494
106,921
12,357
119,278
109,603
27,704
137,307
51,649,290
8,000,000
59,649,290
4,124,190,642
638,799,200
4,762,989,842
245,558,700
2,966,262,332
3,211,821,032
Current account
Citibank N.A., New York, USA
4
Other assets
Advance deposits and advance rent
Stationery A/c & Stamp in hand
Due from Head Office
Notes to the Financial Statements for the year ended 31 December 2012
USD
9
11
Contingent liabilities
11.1
Letters of guarantee
Letters of guarantee (Local)
Letters of guarantee (Foreign)
Foreign counter guarantees
Less: Margin
11.3
11.4
1,934,588
1,934,588
154,476,693
154,476,693
211,063,517
211,063,517
1,503,392
181,317
249,880
1,934,588
120,045,666
14,478,118
19,952,909
154,476,693
110,154,729
14,785,744
86,123,044
211,063,517
24,504
1,836,476
1,860,981
1,956,661
146,642,463
148,599,124
47,702
51,065
606,849
289,605,535
290,311,151
12,606
12,606
12,606
1,006,562
1,006,562
1,006,562
26,979,289
26,979,289
26,979,289
227,296
227,296
227,296
18,149,544
18,149,544
18,149,544
18,604,817
18,604,817
18,604,817
6,645,924
6,645,924
6,645,924
530,676,369
530,676,369
530,676,369
876,183,273
876,183,273
876,183,273
10,033,474
10,033,474
10,033,474
801,171,904
801,171,904
801,171,904
153,267,389
153,267,389
153,267,389
Other liabilities
Interest on bills discount
Interest on borrowing
Provision for Expenses
Suspense A/c
Due to Head Office
11.2
2011
Taka
10
Taka
9.1
2012
Notes to the Financial Statements for the year ended 31 December 2012
USD
12
Loan (general)
SOD
LTR loan
Lease finance
Hire purchase
Payment against documents
Documentary bills purchased
Others
Interest on loans and advances
337,484
43,661
666,811
987,244
305,819
2,341,019
27,624,171
3,573,801
54,580,573
80,809,094
25,032,251
191,619,890
30,307,117
1,017,022
39,498,996
46,202,758
734,116
18,433,181
136,193,190
31,581
31,581
2,372,600
2,584,977
2,584,977
194,204,867
514,255
514,255
136,707,445
679
668,724
16,583
685,986
55,551
54,737,193
1,357,387
56,150,131
48,680
23,969,847
14,598,467
38,616,994
85,324
2,025
71,223
49,784
1,078
70,409
279,844
279,844
6,984,070
165,779
5,829,795
4,075,017
88,217
5,763,237
22,906,115
22,906,115
11,162,368
9,306,445
5,333,504
450,559
3,315,253
29,568,129
29,568,129
7,509
11,242
56,319
75,069
614,636
920,173
4,609,860
6,144,669
1,169,241
989,317
4,510,046
6,668,604
68,687
63,418
10,656
6,453
149,214
5,622,211
5,190,934
872,251
528,235
12,213,631
4,325,003
3,880,152
613,231
396,638
9,215,024
14
15
16
2011
Taka
Taka
Interest income
2012
Notes to the Financial Statements for the year ended 31 December 2012
USD
17
19
21
2011
Taka
9,059
682
2,339
12,080
741,506
55,856
191,417
988,779
558,905
53,419
154,622
766,946
1,084
665
254
8
2,011
88,754
54,396
20,783
663
164,596
47,681
49,403
47,549
4,071
148,704
1,601
1,154
135
2,890
131,044
94,476
11,065
236,585
97,692
75,389
4,059
177,140
8,848
8,848
724,250
724,250
640,563
640,563
392
53
147
592
9,440
32,104
4,321
12,002
48,427
772,677
20,156
33,943
3,263
11,165
68,528
709,091
10,449
1,530
9,031
4,485
115
1,284
680
427
43
1,128
29,172
855,283
125,254
739,180
367,085
9,426
105,118
55,659
34,928
3,541
92,326
2,387,800
829,481
73,844
3,434
274,674
11,065
126,720
46,644
3,542
2,413,370
3,782,774
20
Taka
18
2012
Other expenses
Security and cleaning
Entertainment
Bank charge & Commission
Car expenses
Books, magazines and newspapers, etc.
Travel expenses
Local conveyance, labor, etc.
Training & internship
Other Pofessional Charges
Exgratia
Miscellaneous expenses
Auditors Report
to the shareholders of Prime Bank Investment Limited
We have audited the accompanying financial statements of Prime Bank Investment Limited (PBIL) which comprise the
financial position as at 31 December 2012 and the statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory
information disclosed in Notes 1-39 to the financial statements.
Managements Responsibility for the Financial Statements
Management of PBIL is responsible for the preparation and fair representation of these financial statements in accordance
with Bangladesh Financial Reporting Standards (BFRSs), and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements 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 financial statements are free from material
misstatement.
An audit involves performing procedures to obtain evidence about the amount and disclosures in the financial statements.
The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers internal
control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. 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 financial statements.
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 financial statements which have been prepared in accordance with Bangladesh Accounting Standards
give a true and fair view of the state of affairs of the Company as at 31 December 2012 and of their cash flows for the period
from 01 January 2012 to 31 December 2012 and comply with applicable laws and regulations.
Emphasis of matter
Without qualifying our opinion above, we draw attention to the following matters:
1.
The company paid interim dividend, as mentioned in note# 23 to the financial statements, before issuance of
press release# SEC/Mukhopatro/2011/696 dated 19 February 2013 of Bangladesh Securities and Exchange
Commission, as referred in note# 20.02.
2.
In note# 38 to the financial statements, the company disclosed contingent liability regarding waiver of interest on
loan provided to affected investors.
we have obtained all the material information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof;
in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of those books;
the Companys financial position and financial performance dealt with by the report are in agreement with the books
of account; and
the expenditure incurred was for the purposes of the Companys business.
Dated, Dhaka
27 February 2013
Annual Report 2012 322
ACNABIN
Chartered Accountants
Amount in Taka
2012
2011
22,809,876
37,500,000
3,660,401
27,599,950
37,500,000
4,183,316
63,970,277
69,283,266
6,356,759,509
1,399,569,819
108,044
29,019,573
90,418,458
5,909,408,197
1,441,557,511
48,603
735,332
112,340,005
3,254,574
7,875,875,403
7,939,845,680
7,467,344,223
7,536,627,489
3,000,000,000
86,488,306
3,000,000,000
152,129,749
3,086,488,306
3,152,129,749
1,203,477
2,151,261
15
1,203,477
2,151,261
16
17
18
19
20
21
22
23
24
3,933,012,530
46,521
44,100
8,037,006
504,502,037
155,023,509
10,248,937
240,000,006
1,239,251
3,578,091,569
90,159,688
44,100
7,092,400
400,000,000
253,038,532
42,110,378
6
11,809,806
4,852,153,897
7,939,845,680
4,382,346,480
7,536,627,489
ASSETS
Non-Current Assets
5
6
7
8
9
10
11
12
13
14
Share capital
Retained earnings
Total Equity (C)
Non-current liabilities
Deferred tax liabilities
Total non-current liabilities (D)
Current Liabilities
Loan Facilities
Liability for withholding taxes
Security Deposit Receipt
Payable for expenses
Provision for investment and clients margin loan
Corporate income tax payable
Accounts payable
Dividend payable
Other payables
Total current liabilities (E)
Total Equity and Liabilities (C+D+E)
These financial statements should be read in conjunction with annexed notes 1 to 39.
Dated, Dhaka
27 February 2013
Director
Vice-Chairperson
ACNABIN
Chartered Accountants
Annual Report 2012 323
2012
Amount in Taka
2011
INCOME (A)
Interest income
Transaction/settlement fee
Management fee
Gain on sale of shares
Dividend on shares
Underwriting Commission
Bank Interest on STD accounts
Documentation fees
Other Income
861,132,742
59,535,567
43,021,047
5,191,395
43,634,197
177,600
2,630,735
7,500
125,905
1,015,456,688
815,326,644
149,381,569
141,603,034
3,614,091
61,273,656
1,139,600
166,295
54,000
1,005,323
1,173,564,211
513,953,702
8,737,127
34,528,694
11,274,109
339,295
1,520,411
1,472,157
46,200
115,000
6,351,755
1,141,992
3,062,969
582,543,411
432,913,277
392,108,259
16,052,537
674,666
31,718,629
10,451,172
415,014
1,886,219
2,383,560
103,000
62,700
6,603,129
4,191,404
3,517,313
470,167,601
703,396,610
104,502,037
328,411,240
154,052,683
174,358,557
388,952,446
314,444,164
255,939,030
58,505,134
0.58
0.20
25
26
27
EXPENDITURE (B)
Interest expenses
Settlement and other fees
Transaction cost
Salary and allowances
Rent, Taxes, Insurance and Electricity
Legal & Professional expenses
Postage, Stamp and Telecommunication
Stationery, Printing and Advertisement
Directors Remuneration
Auditors fee
Depreciation, Amortisation and Repair of assets
Entertainment, Travelling & Conveyance
Other expenses
28
29
30
31
32
33
34
35
36
Dated, Dhaka
27 February 2013
37
Director
Vice-Chairperson
ACNABIN
Chartered Accountants
Paid up capital
Taka
Retained earnings
Taka
Total
Taka
3,000,000,000
152,129,749
3,152,129,749
3,000,000,000
152,129,749
3,152,129,749
174,358,557
174,358,557
(240,000,000)
(240,000,000)
3,000,000,000
86,488,306
3,086,488,306
Director
Vice-Chairperson
Dated, Dhaka
27 February 2013
696,049,250
(100,000,000)
(291,588,074)
304,461,176
(474,932)
54,926,179
(7,747,640)
(6,348,091,622)
5,897,653,045
(403,734,970)
(667,510)
59,848,541
(450,452,139)
(5,897,653,045)
5,041,355,927
(1,247,568,226)
354,920,960
354,920,960
1,295,084,571
(359,999,994)
935,084,577
87,163,884
3,254,574
90,418,458
(8,022,473)
11,277,047
3,254,574
D.
379,037,404
(150,675,485)
(89,999,999)
(2,383,026)
(1,000)
135,977,894
C.
2011
B.
Amount in Taka
Dated, Dhaka
27 February 2013
Director
Vice-Chairperson
Reporting Entity
1.1
Prime Bank Investment Ltd is a subsidiary company of Prime Bank Ltd, incorporated as a public limited
company on 28 April 2010 with the Registrar of Joint Stock Companies, Dhaka vide certificate of
incorporation no. C-84266/10 dated 28 April 2010 which has commenced its business on the same date.
The functions of investment banking were separated from Prime Bank Ltd by forming a subsidiary company
in terms of Bangladesh Banks BRPD circular no. 12 dated 14 October 2009. Bangladesh Securities and
Exchange Commission (SEC) thereafter issued a full fledged merchant banking licence in favour of Prime
Bank Investment Ltd, vide letter no. SEC/Reg/MB/SUB/2010/03/208 dated 02 June 2010 with effect from 01
June 2010.
1.2
Principal Activities
The main objectives of the Company for which was established are to carry out the business of full-fledged
merchant banking activities like issue management, portfolio management, underwriting, corporate advisory
services, etc.
2.
Basis of Preparation
2.1
Statement of compliance
The financial statements have been prepared in accordance with Bangladesh Financial Reporting Standards
(BFRS), the Companies Act 1994, Securities and Exchange Rules 1987 and other applicable laws in
Bangladesh.
2.2
2.3
Reporting period
The financial period of the Company under audit covers twelve (12) months from 01 January 2012 to 31 December 2012.
3.
10
20
Books
20
Vehicles
20
3.4
3.5
3.6
Investments
During the previous year all investments in securities were recognised at cost, being fair value of the
consideration given, including acquisition charges associated with the investments. But from this year
transaction costs have been treated as expenses in accordance with BAS-39, without considering the same.
Due to impractibility of calculation prevoius years figure has not been restated. The valuation methods of
investments used are:
3.6.1 Investment in listed securities
These are acquired and held primarily for the purpose of selling them in future or held for dividend
income and are reported at cost. Unrealised gains are not recognised in the statement of comprehensive
income. Provision for diminution in value of investment is provided in the financial statements on those
securities whose market price is below the cost of investment by netting off with those whose value
increase than cost.
3.6.2 Investment in Prime Bank Securities Ltd
Investment in associated company is accounted for under the cost method of accounting in the
Companys financial statements. Accordingly, investment in associated company is stated in the
Companys Statement of Financial Position at cost, less impairment losses, if any.
3.7
Intangible assets
(a)
An intangible asset is recognised if it is probable that the future economic benefits that are attributable
to the asset will flow to the entity and the cost of the assets can be measured reliably.
(b)
Software represents the value of computer application software licensed for use of the Company other
than those applied for the operating system of computers. Intangible assets are carried at their cost,
less accumulated amortisation and impairment loss, if any.
Initial cost comprises license fees paid at the time of its acquisition and other directly attributable
expenditures that are incurred in customising the software for its intended use.
(c)
Expenditure incurred for software is capitalised only when it enhances and extends the economic
benefits of software beyond its original specification and life and such cost is recognised as capital
improvement and added to the original cost of software.
Software is amortised using the straight-line method over the estimated useful life of 10 (ten) years commencing
from the date of the acquisition available for use over the best estimates of its useful economic life.
Receivables
Receivables are recognised when there is a contractual right to receive cash or another financial asset from another entity.
3.9
Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
3.10
Borrowing funds
Borrowing funds include borrowings from Prime Bank Limited, which is stated in the statement of financial
position at amounts payable.
Provident Fund
Provident fund benefits are given to the permanent employees of the Company in accordance with the
Companys service rules. All confirmed employees of the Company are contributing 10% of their basic
salary as contribution to the Fund. The Company also contributes equal amount of the employees
contribution. Interest earned from the investments is credited to the members account on yearly basis.
The fund is administered by Prime Bank Ltd.
(b)
Gratuity Fund
The Company operates an unfunded gratuity scheme, provision in respect of which is made annually
covering all its permanent eligible employees. Actuarial valuation of gratuity scheme had been made
to assess the adequacy of the liabilities provided for the scheme as per BAS-19 Employee Benefits.
The fund is administered by Prime Bank Ltd.
(c)
Welfare Fund
Prime Bank Investment Employees Welfare Fund is subscribed by monthly contribution of the
employees. The Company also contributes to the fund from time to time. The fund has been established
to provide financial assistance in the event of death or permanent disabilities of the employees.
Disbursement of loan from the fund is regulated as per rules of said fund. The fund is administered by
Prime Bank Ltd.
(d)
Incentive Bonus
Prime Bank Investment Limited started an incentive bonus scheme for its employees. Maximum 10%
of net profit after tax is given to the employees in every year as incentive bonus. This bonus amount
is being distributed among the employees based on their performance and is paid annually, normally
first quarter of every following year and the costs are accounted for in the period in which it relates.
Annual Report 2012 329
4.
Revenue Recognition
4.1
Interest income
In terms of the provisions of BAS-18 Revenue, interest income is recognised on an accrual basis.
4.2
Investment income
Interest income on investments is recognised on an accrual basis. Capital gains on investments in shares are
also included in investment income. Capital gains are recognised when these are realised.
4.3
4.4
4.5
4.6
4.7
4.8
Compliance report on Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting
Standards (BFRS)
While preparing the financial statements, Prime Bank Investment Limited applied most of BAS and BFRS as
adopted by Institute of Chartered Accountants of Bangladesh. Details are given below:
Name of BAS
No.
Status
Applied
Inventories
N/A
Applied
Applied
10
Applied
Construction Contracts
11
N/A
Income Taxes
12
Applied
Segment Reporting
14
N/A
16
Applied
Borrowing Costs
23
Name of BAS
24
Applied
25
Applied
26
N/A
27
N/A
Investment in Associates
28
N/A
31
N/A
32
Applied
33
Applied
34
Applied
Impairment of Assets
36
Applied
37
Applied
Intangible Assets
38
Applied
39
Applied
Investment Property
40
N/A
Agriculture
41
N/A
No.
Status
N/A
Share-based Payment
N/A
Business Combinations
N/A
Insurance Contracts
N/A
N/A
N/A
Applied
Amount in Taka
2011
35,774,588
35,107,078
474,932
667,510
36,249,520
35,774,588
Opening balance
8,174,638
2,990,158
5,265,006
5,184,480
13,439,644
8,174,638
22,809,876
27,599,950
37,500,000
37,500,000
An amount of Taka 37,500,000 was invested by the company in 3,750,000 ordinary shares of Taka 10 each of Prime
Bank Securities Ltd (PBSL), a subsidiary company of Prime Bank Ltd. PBSL holds two membership of Dhaka Stock
Exchange Ltd, membership no. 219 and Chittagong Stock Exchange Ltd, membership no. 141.
7.
4,183,316
4,706,231
522,915
522,915
3,660,401
4,183,316
6,348,091,622
5,897,653,045
7,924,509
10,630,215
30,200
29,200
713,178
1,095,736
6,356,759,509
5,909,408,197
6,454,638,483
5,897,653,045
106,546,861
6,348,091,622
5,897,653,045
8.01
2012
Market Price
401,559,397
237,408,500
407,602,673
305,585,950
BATBC
335,856,081
395,698,325
335,856,081
295,206,505
121,400
107,140
121,400
119,700
488
1,560
2,144,940
8,049,960
22,225,320
10,370,430
22,225,320
12,655,440
First Janata MF
34,643,394
23,520,000
34,643,394
29,904,000
Green Delta MF
12,900,556
8,821,650
12,900,556
8,693,800
39,213,709
25,547,100
39,213,709
25,959,150
164,040
276,079
1,128,731
1,245,108
3,608,809
4,823,872
4,621,826
4,236,135
4,621,900
4,617,278
5,128,050
3,782,937
7,573,723
6,172,354
71,808,148
51,894,260
71,808,148
53,455,500
44,416,484
22,890,067
44,416,484
26,278,224
111,097,971
82,243,718
120,368,643
87,846,200
PHP First MF
37,094,860
26,230,500
53,361,996
38,280,600
11,832,515
9,064,800
15,127,088
11,102,100
23,263,881
11,826,196
23,263,881
13,181,181
DESCO Ltd.
98,043,053
55,345,726
98,043,360
75,761,307
273
1,473
273
1,842
140,066,058
99,227,952
144,655,133
101,354,330
4,383,584
4,589,065
1,399,569,819
1,074,328,721
1,441,557,511
1,109,049,292
2012
Amount in Taka
2011
Dividend Receivable
Dividend of M.I. Cement Factory
11.
Market Price
Investment in share
10.
2011
Cost Price
48,603
48,603
735,332
56,244
52,732
51,800
682,600
(682,600)
(52,732)
108,044
735,332
Prepaid Expenses
Opening balance
Add: Insurance Expenses
Insurance Expenses
Less:
112,340,005
4,989,166
3,423,550
9,701
105,200
254,550
4,430,690
23,619
9
325,636
100,044
1,100
19,530
13,866
18,959
45
263,074
30,000
160,675,485
169,695,057
(12,340,005)
(240,675,485)
29,019,573
6,229,860
4,133,760
19,835
3
385,570
79,080
604,800
12,057
779,700
16,629
6,500
100,000,000
11,250
60,960
112,340,005
(4,989,166)
112,340,005
7,346
41,057
845,065
249,376
28,913,004
49,694,706
10,706,364
2,595
2
90,418,458
2,062,068
41,406
597,613
205,277
303,499
3,653
2
3,254,574
3,000,000,000
3,000,000,000
14.
2011
13.
Share Capital
This represents amount received from Prime Bank Ltd as well as sponsor-directors which was subsequently transferred
to the Companys bank account. As at 31 December 2011, a total of 300,000,000 ordinary shares of Tk. 10 each were
issued subscribed and fully paid up. Details are as follows:
Authorized capital:
10,000,000,000
10,000,000,000
No. of shares
Percentage
(%)
Taka
299,999,994
6
300,000,000
99.99
0.01
100
2,999,999,940
60
3,000,000,000
2011
16
Amount in Taka
2,151,261
(947,784)
1,203,477
2,238,414
(87,154)
2,151,261
3,465,641,868
467,370,661
3,933,012,529
3,578,091,569
3,578,091,569
Loan Facilities
Balance of OD facilities from Prime Bank Ltd.
Balance of OD facilities from Bank Asia Ltd.
PBIL is enjoying OD (General) limit of Tk. 325.00 Crore from Prime Bank Ltd, Motijheel Branch bearing interest @ 14%
per annum on quarterly basis vide reference no. Prime/MJ/CR/2012/58162 dated 30 December 2012.
PBIL is enjoying OD (General) limit of Tk. 50.00 Crore from Bank Asia Ltd, Paltan Branch bearing interest @ 15% per
annnum on quarterly basis vide reference no. BA/PAL/CR/2012/1317 dated 18 April 2012.
17
18
649,404
91,848,371
(2,338,087)
90,159,688
44,100
280,000
(280,000)
44,100
83,800
(39,700)
44,100
923,947
6,527,500
115,000
332,982
91,151
18,426
28,000
8,037,006
412,918
5,800,000
62,700
332,982
111,468
19,729
150,219
141,194
34,338
26,852
7,092,400
325,915,764
178,586,273
504,502,037
400,000,000
400,000,000
19
90,159,688
2,269,858
(92,383,025)
46,521
20
20.01
Investments have been recorded at cost and adequate provision for probable future losses has been made. Market
value of securities has been determined on the basis of the value of securities at the last trading dates closing price of
the year i.e. 30 December 2012.
Opening balance
Add: Provision made for the year
Less: Reversal of provision during the year
Closing Balance
400,000,000
(74,084,236)
325,915,764
11,047,554
388,952,446
400,000,000
Amount in Taka
2011
20.02
As per Press release# SEC/Mukhopatro/2011/696 dated 19 February 2013 of Bangladesh Securities and Exchange
Commission, 20% provision has been made for unrealized loss arising out of year-end (31.12.2012) revaluation of
shares purchased through margin loan. The press release prohibits payment of cash dividend if the company makes
less than 100% provision on such unrealized loss. The company declared 8% interim cash dividend amounting to Tk.
24 crore to the shareholders of the company. The interim dividend was declared on 31 December 2012 and paid on
30 January 2013.
21
253,038,532
293,589,588
155,000,467
253,038,532
(253,015,490)
(293,589,588)
155,023,509
253,038,532
Accounts Payable
Payable to Nabeel Mahmood
3,750
3,750
27,840
620,000
10,000
34,713
3,240
Payable to CDBL
1,703,866
94,806
40,631
20,316
10,000,000
5,750
5,750
67,718
32,166
5,966
33,900
27,731,780
48,573
416,073
11,448,727
10,248,937
42,110,378
23
Dividend Payable
Opening balance
Add: Dividend payable during the period
Less: Payment during the period
Closing balance
240,000,000
360,000,001
(359,999,996)
240,000,006
The company declared 8% interim cash dividend amounting to Tk.24 crore to the shareholders of the company. The
interim dividend was declared on 31 December 2012 and paid on 30 January 2013.
24
Other Liabilities
Payable to Brokers
551,231
7,742,599
Payable to Clients
688,021
2,072,798
1,994,409
1,239,251
11,809,806
Un-earned Revenue
28
31,149,300
20,668,800
99,260
216
1,927,850
395,400
14
3,024,000
1,346
60,367
3,898,500
48,603
61,273,656
147,600
30,000
177,600
150,000
200,000
180,000
609,600
1,139,600
369,592
1,838,783
422,360
2,630,735
93,164
46,913
26,217
166,295
13,662,803
11,915,861
2,268,900
1,337,130
5,200,000
144,000
34,528,694
12,768,110
9,946,350
1,860,175
1,172,994
5,800,000
171,000
31,718,629
9,819,593
59,762
1,394,754
11,274,109
9,574,902
6,591
869,679
10,451,172
29
526,000
1,272,750
17,167,750
22,153,450
118,166
45
1,628,202
500,220
5,500
97,650
94,814
3
32
225
69,391
43,634,197
Underwriting Commission
GBB Power Ltd.
Keya Cosmetics Limited
Brac Bank Ltd
EXIM Bank Ltd
Barakatullah Electro Dynamics Ltd.
MJL Bangladesh Ltd
27
2011
26
Amount in Taka
255,445
83,850
339,295
376,349
38,665
415,014
1,138,214
382,196
1,520,411
1,471,909
414,310
1,886,219
1,472,157
1,472,157
2,008,796
374,763
2,383,560
5,265,006
522,915
563,834
6,351,755
5,184,480
522,915
895,734
6,603,129
969,449
122,543
50,000
1,141,992
1,158,820
870,461
118,962
2,043,161
4,191,404
1,944,217
29,599
50,000
113,484
168,000
87,750
280,169
389,750
3,062,969
1,907,128
41,588
157,510
300,000
164,500
141,075
533,228
272,285
3,517,313
Tax Liability
(Tk.)
Tax Liability
(Tk.)
6,500
10
20
37.5
519,139
8,726,839
145,754,488
155,000,467
(947,784)
154,052,683
345,042
12,254,731
240,432,259
253,038,532
(87,154)
2,987,652
255,939,030
32
33
34
35
Other Expenses
Security and cleaning
Bank charges
Subscription to institutions
Training and internship
Donation
Exgratia
Plant Maintenance
Miscellaneous
Car expenses
36
2011
Legal Expenses
Professional charges
Legal fees
31
Amount in Taka
Tax Expenses
Current tax expenses
Head of
Income (Tk.)
5,191,395
43,634,197
388,678,635
437,504,227
Applicable
tax rate (%)
2011
38
Amount in Taka
174,358,557
300,000,000
0.58
58,505,134
300,000,000
0.20
Contingent Liability
In order to comply with the governments direction (Circular# 53.014.03102.00.002.2012-72 dated 05 March 2012 issued
by Capital Market Section of Banking and Financial Institution Division of Ministry of Finance of The Government of the
Peoples Republic of Bangladesh on Special scheme for protecting interest of the affected small investors in capital
market.) to waive 50% interest of the affected clients, 761 clients who availed margin loan had been sorted under the
criteria of affected investors set by the Special Scheme Committee. The total amount stood at Tk. 15,256,732.85 if
50% interest charged against the margin loan of the affected clients during 1st January 2011 to 31st December 2011
is waived. This amount of Tk.15,256,732.85 has been regarded as a contingent liability instead of making a provision,
since the company is disputing such waiver.
39
Others
39.1 Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.
39.2 These notes form an integral part of the annexed financial statements and accordingly are to be read in conjunction therewith.
Director
Vice-Chairperson
Dated, Dhaka
27 February 2013
35,774,588
31,585,442
3,521,636
35,107,078
3,821,636
3,821,636
15,471,498
12,153,842
4,320,000
7,612
31,952,952
Software-Amortization
Software
Sub-total (b)
Particulars
Balance at 01
January 2012
367,510
300,000
667,510
474,932
474,932
474,932
Additions
31,952,952
3,821,636
35,774,588
36,249,520
3,821,636
3,821,636
15,471,498
12,628,774
4,320,000
7,612
32,427,884
Cost
Adjustment/
Balance at 31
Disposal during December 2012
the year
10
10
20
20
20
Rate
%
2,784,729
205,429
2,990,158
8,174,640
568,238
568,238
2,444,984
3,791,008
1,368,000
2,410
7,606,402
Balance at 01
January 2012
4,821,671
362,809
5,184,480
5,265,005
382,164
382,164
1,547,150
2,470,169
864,000
1,522
4,882,841
Depreciation
Charge
Adjustment/
during the
Disposal
year
during the year
2012
7,606,400
568,238
8,174,638
13,439,644
950,402
950,402
3,992,134
6,261,177
2,232,000
3,932
12,489,243
24,346,552
3,253,398
27,599,950
22,809,876
2,871,234
2,871,234
11,479,364
6,367,597
2,088,000
3,680
19,938,641
Annex-A
Amount in Taka
Written down
value at 31
Balance at
Dec 2012
31 December
Auditors Report
to the shareholders of Prime Bank Securities Limited
We have audited the accompanying financial statements of Prime Bank Securities Limited (PBSL) which comprise the
financial position as at 31 December 2012 and the statement of comprehensive income, statement of changes in equity and
statement of cash flows for the year then ended and a summary of significant accounting policies and other explanatory
information disclosed in Notes 1-22 to the financial statements.
Managements Responsibility for the Financial Statements
Management of PBSL is responsible for the preparation and fair representation of these financial statements in accordance
with Bangladesh Financial Reporting Standards (BFRSs), and for such internal control as management determines is
necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
Auditors Responsibility
Our responsibility is to express an opinion on these financial statements 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 financial statements are free from material
misstatement.
An audit involves performing procedures to obtain evidence about the amount and disclosures in the financial statements.
The procedures selected depend on the auditors judgment, including the assessment of the risks of material misstatement
of the financial statements, whether due to fraud or error. In making those risks assessments, the auditor considers internal
control relevant to the entitys preparation and fair presentation of the financial statements in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. 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 financial statements.
We believe that our audit provides a reasonable basis for our opinion.
Opinion
In our opinion, financial statements which have been prepared in accordance with Bangladesh Financial Reporting Standards
give a true and fair view of the state of affairs of the company as at 31 December 2012 and of its financial performance and
cash flows for the year then ended in accordance with Bangladesh Financial Reporting Standards.
Emphasis of Matter
Without qualifying our opinion we draw attention to note # 06 to the financial statements where the Company explains the
measurement procedure of DSE and CSE memberships cost.
Report on Other Legal and Regulatory Requirements
We also report that:
(a)
(b)
(c)
(d)
we have obtained all the material information and explanations which to the best of our knowledge and belief were
necessary for the purposes of our audit and made due verification thereof;
in our opinion, proper books of account as required by law have been kept by the Company so far as it appeared
from our examination of those books;
the Companys financial position and financial performance dealt with by the report are in agreement with the books
of account; and
the expenditure incurred was for the purposes of the Companys business.
Dated, Dhaka
26 February 2013
ACNABIN
Chartered Accountants
Amount in Taka
2012
2011
SOURCES OF FUNDS
Share Capital
750,000,000
750,000,000
Retained Earnings
33,096,718
4,495,828
783,096,718
754,495,828
7,492,430
9,326,599
Shareholders equity
APPLICATION OF FUNDS
Non-Current Assets (A)
5
Fixed assets
Intangible assets
1,217,647
815,796
Membership at cost
664,000,000
664,000,000
672,710,077
674,142,395
231,300
313,800
19,568,538
8,143,350
Investment in securities
77,051,850
32,472,977
Accounts receivable
10
Loan to customers
7,658,920
27,780,279
404,029,700
193,021,110
Preliminary expenses
11
614,121
1,228,243
12
190,740
4,803,433
509,427,669
267,680,692
13
14,933,195
40,849,889
Secured overdraft
14
352,278,429
135,253,198
4,221,798
988,820
15.01
597,088
15
23,855,427
8,170,117
15
648,910
665,885
16
2,506,181
1,399,350
399,041,028
187,327,258
110,386,641
80,353,434
783,096,718
754,495,828
These financial statements should be read in conjunction with annexed notes 1 to 22.
Dated, Dhaka
26 February 2013
Director
Chairman
ACNABIN
Chartered Accountants
2012
Amount in Taka
2011
Operating Income
17
18
Interest income
Capital gain from investment in shares
Dividend income
Other operating income
19
Operating expenses
20
21
Direct expenses
15.01
15
Current tax
15
Deferred tax
52,419,765
20,187,773
58,355,301
8,507,103
8,850,564
1,916,822
944,511
108,873
859,572
328,617
121,429,712
31,049,188
65,988,517
14,144,974
7,341,905
2,583,564
73,330,421
16,728,538
48,099,291
14,320,650
3,232,978
988,820
597,088
3,830,066
988,820
44,269,225
13,331,830
15,685,310
8,170,117
(16,975)
665,885
15,668,336
8,836,002
0.38
0.06
28,600,890
4,495,828
These financial statements should be read in conjunction with annexed notes 1 to 22.
Dated, Dhaka
26 February 2013
Director
Chairman
ACNABIN
Chartered Accountants
Share capital
Retained earnings
Total
750,000,000
750,000,000
4,495,828
4,495,828
750,000,000
4,495,828
754,495,828
750,000,000
4,495,828
754,495,828
Share capital
28,600,890
28,600,890
750,000,000
33,096,718
783,096,718
Director
Chairman
Dated, Dhaka
26 February 2013
Amount in Taka
2012
2011
28,600,890
4,495,828
2,503,407
614,122
(650,111)
3,232,978
597,088
6,297,484
1,114,469
631,372
(60,367)
988,820
2,674,294
(82,500)
(11,425,188)
(44,578,873)
20,121,360
(211,008,590)
(16,975)
15,685,310
1,106,830
(25,916,694)
217,025,232
(39,090,088)
(4,191,714)
(231,300)
(8,145,350)
(22,739,059)
(27,780,279)
(193,021,110)
8,836,002
1,399,350
40,849,889
135,253,198
(65,578,659)
(58,408,537)
(412,490)
(658,600)
(1,071,090)
(10,387,589)
(869,275)
(11,256,864)
650,111
650,111
60,367
60,367
D
E
F
(4,612,693)
4,803,433
190,740
(69,605,034)
74,408,467
4,803,433
4,895
185,845
190,740
10,817
4,792,616
4,803,433
Cash in hand
Cash at Bank
Dated, Dhaka
26 February 2013
Director
Chairman
1.2
Nature of Business
The principal objectives of the Company are to act as a member of Dhaka Stock Exchange Ltd. and Chittagong Stock
Exchange Ltd. to carry on the business of stock brokers / dealers in relation to shares and securities dealings and
other services as mentioned in the Memorandum and Articles of Association of the Company.
1.3
Reporting period
These financial statements cover one calendar year from 1 January to 31 December 2012.
1.5
Share capital
Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets.
1.6
Rate(%)
20
Office equipment
25
Air conditioners
25
25
Vehicle
20
For additions during the year, depreciation is charged for the remaining days of the year and for disposal
depreciation is charged up to the date of disposal.
On disposal of fixed assets, the cost and accumulated depreciation are eliminated from the fixed assets schedule
and gain or loss on such disposal is reflected in the income statement, which is determined with reference to the
net book value of the assets and net sale proceeds.
1.7
1.8
Investment in Membership
Investment in membership are stated at cost. The cost of acquisition of an membership comprises its purchase
price and any directly attributable cost of bringing the asset to its working condition for its intended use inclusive of
stamp duty and non-refundable taxes, etc.
1.9
1.10
Investments in securities
Investment in marketable and non-marketable ordinary shares has been shown at cost. Full provision for diminution
in value of shares as on closing of the year on an aggregate portfolio basis has been made in the account.
1.12
Account receivables
Receivables are recognized when there is a contractual right to receive cash or another financial asset from another
entity.
1.13
Loans to customers
Loans to customers are stated in the balance sheet on gross basis. Interest is calculated on a daily product basis but
charged and accounted for on accrual basis. Interest on customer loans is realized quarterly.
1.14
1.15
1.16
1.17
Deferred taxation
Deferred tax liabilities are the amount of income taxes payable in future periods in respect of taxable temporary
differences. Deferred tax assets are the amount of income taxes recoverable in future periods in respect of deductible
temporary differences. Deferred tax assets and liabilities are recognized for the future tax consequences of timing
differences arising between the carrying values of assets, liabilities, income and expenditure and their respective
tax bases. Deferred tax assets and liabilities are measured using tax rates and tax laws that have been enacted or
substantially enacted at the balance sheet date. The impact on the account of changes in the deferred tax assets
and liabilities has also been recognized in the profit and loss account as per BAS-12 Income Taxes.
1.18
Secured overdraft
Borrowing fund include borrowings from Prime Bank Limited, which is stated in the statement of financial position at
secured overdraft. Interest on secured overdraft is recognized in statement of comprehensive income.
1.19
Incentive bonus
Prime Bank Securities Ltd. started a incentive bonus scheme for its employees. 10% of net profit after tax is given
to the employees in every year as incentive bonus. This bonus amount is being distributed among the employees
based on their performance. The bonus amount is paid annually, normally first quarter of every following year and
the cost are accounted for the period to which it relates.
1.20
1.21
Brokerage commission
Brokerage commission is recognized as income when selling or buying order executed.
1.22
1.24
Fees income
Fees income arises on services provided by the Company are recognized on accrual basis.
1.25
1.26
1.27
1.28
1.29
General
a)
These financial statements are presented in Taka, which is the Companys functional currency. Figures
appearing in these financial statements have been rounded off to the nearest Taka.
b)
The expenses, irrespective of capital or revenue nature, accrued / due but not paid have been provided
for in the books of the Company.
c)
Figures of previous year have been rearranged whenever necessary to conform to current years
presentation.
Share capital
Authorized capital
150000000 ordinary shares of Tk.10 each
Issued, subscribed and paid-up capital
75,000,000 ordinary shares of Taka 10 each issued and fully paid each
Shareholding position of the company is as under
Prime Bank Limited
Prime Bank Investment Limited
Retained earnings
Opening balance-Broker
Opening balance-Dealer
Add: Net profit during the year
Less: Dividend
Closing balance
Amount in Taka
2011
1,500,000,000
1,500,000,000
750,000,000
750,000,000
Number of shares
71,250,000
3,750,000
75,000,000
Taka
712,500,000
37,500,000
750,000,000
2,481,403
2,014,425
4,495,828
28,600,890
33,096,718
33,096,718
4,495,828
4,495,828
4,495,828
1,255,574
338,700
1,135,500
5,902,620
2,167,685
10,800,079
1,183,584
1,135,500
5,902,620
2,165,885
10,387,589
1,060,990
2,246,659
3,307,649
7,492,430
1,060,990
1,060,990
9,326,599
1,111,000
150,000
200,000
66,875
1,527,875
665,000
150,000
53,479
256,748
310,228
1,217,647
53,479
53,479
815,796
54,275
869,275
Membership at cost
This represents the amount paid for purchasing membership of Dhaka Stock Exchange Limited (DSE) and
Chittagong Stock Exchange Limited (CSE) including stamp duty for transferring shares.
Purchase of DSE membership
507,500,000
507,500,000
Purchase of CSE membership
156,500,000
156,500,000
664,000,000
664,000,000
We have measured DSE and CSE memberships at cost instead of fair value. As there is no active market for
DSE and CSE memberships and the market price of the same fluctuates significantly over time, we shown the
value at cost.
Investment in securities
Cost Price
The City Bank Ltd.
DESCO
IFIC Bank Ltd.
Jamuna Oil
Lafarge Surma Cement
Lankabangla Finance
National Housing Finance and Investment Ltd.
One Bank Ltd.
Phonix Finance and Investment Ltd.
Rupali Insurance Company Ltd.
Square Pharmaceutical Ltd
Unique Hotel
Uttara Bank Ltd.
M.I. Cement Factory Ltd.
MJL Bangladesh Ltd.
Total Cost price (A)
Market Price (B)
Loss for diminution in value of investment in shares (C=A-B)
20% provision for unrealized loss arising out of year end
(31/12/12) revaluation of shares purchased*(d=C X 20%)
Less: Provision already kept in last year
Net provision
Details in annexure-B
Amount in Taka
2011
200,000
25,000
82,500
6,300
313,800
200,000
25,000
6,300
231,300
8,143,350
11,026,941
197,994
23,535
9,217
26,767
1,009
139,726
11,425,188
19,568,538
7,791,466
32,894
132,300
174,409
224
12,057
8,143,350
8,143,350
4,578,419
10,721,200
14,105,710
4,276,300
8,763,100
4,602,900
10,844,135
6,546,850
6,640,500
5,972,735
77,051,850
4,270,419
7,468,135
4,049,988
6,070,050
1,766,430
1,239,090
3,608,809
4,000,056
32,472,977
55,942,860
21,108,990
31,484,157
988,820
4,221,798
988,820
3,232,978
988,820
*As per Press release# SEC/Mukhopatro/2011/696 dated 19 February 2013 of Bangladesh Securities and
Exchange Commission, 20% provision has been made for unrealized loss arising out of year-end (31.12.2012)
revaluation of shares purchased as dealer.
10
Accounts receivable
Receivable from DSE
Receivable from DSE-Dealer
Receivable from PBIL
Dividend receivable
Receivable from clients
7,317,754
46,766
294,400
7,658,920
48,506
27,731,774
27,780,279
1,859,615
631,372
1,228,243
4,895
10,817
8,865
30,638
102,647
5,340
14,505
23,850
185,845
190,740
4,222,066
83,542
335,801
120,858
29,640
708
4,792,616
4,803,433
57,192
159,892
9,519,781
283,220
4,913,110
14,933,195
29,028,119
23,356
10,907,860
890,554
40,849,889
352,278,429
135,253,198
Accounts payable
Payable to DSE
Payable to CDBL
Payable to clients
Security deposits
Payable to PBIL
14
1,228,243
614,122
614,121
13
2011
Preliminary expenses
Opening balance
Add: expenses made during the year
Less: Write-off in 2012
12
Amount in Taka
The above loan, overdraft (general), was taken from Prime Bank Ltd, Motijheel Branch bearing interest @ 14.50%
per annnum on quarterly basis vide reference no. Prime/MJ/CR/2011/33809 dated 04 September 2011.
15
15.01
8,170,117
15,685,310
23,855,427
8,170,117
8,170,117
665,885
(16,975)
648,910
24,504,337
665,885
665,885
8,836,002
2,985,439
597,088
*As per Press release# SEC/Mukhopatro/2011/696 dated 19 February 2013 of Bangladesh Securities and
Exchange Commission, 20% provision has been made for unrealized loss arising out of year-end (31.12.2012)
revaluation of shares purchased through margin loan.
33,000
52,000
2,000
28,000
126,000
60,000
14,000
77,550
500,000
449,000
41,800
16,000
2,506,181
1,399,350
18,463,381
38,423
18,501,804
14,813,162
341,392
15,154,555
33,845,483
72,478
33,917,961
52,419,765
4,992,670
40,548
5,033,218
20,187,773
58,253,044
102,256
58,355,301
6,760,777
1,746,326
8,507,103
215,000
337,072
13,500
235,000
59,000
859,572
131,000
160,617
37,000
328,617
Interest income
Interest income from margin loan
Interest on deposits
19
265,000
63,250
7,500
25,000
83,246
55,000
8,000
395,100
1,459,085
69,000
69,000
7,000
18
2011
17
Amount in Taka
76,300
17,300
157,600
20,900
1,114,469
4,700
6,700
3,000
56,384
353,770
4,940
21,600
14,700
2,000
631,372
14,144,974
6,232,120
2,569,312
424,548
961,058
454,633
531,112
6,500
11,179,283
1,953,018
782,318
125,500
289,200
38,775
500,000
3,688,811
45,183
806,550
41,618,117
42,469,849
47,457
518,070
3,044,198
3,609,724
668,389
263,313
93,446
37,761
67,017
899,340
2,029,266
366,125
170,032
105,055
15,323
26,261
463,332
1,146,127
Financial Expenses
Bank charge & commission
Commission on Bank guarantee
Interest on loan
11,179,283
977,500
1,430,000
475,414
42,469,849
2,620,610
2,029,266
6,990
44,510
18,975
202,144
69,000
186,185
110,800
2,503,407
9,700
44,499
687,501
14,644
14,400
153,519
126,198
614,122
65,988,517
3,688,811
599,400
449,000
167,466
3,609,724
1,489,742
1,146,127
6,840
13,250
26,700
347,017
115,161
2011
Operating expenses
Salary & allowances(a)
Festival bonus
Incentive bonus
Entertainment
Financial expenses (b)
Office rent
Utility bill ( C)
Repair & maintenance
Conveyance and traveling
Remuneration
Printing and stationery
Advertisement
Directors fee
Audit fee
Legal fee
Fees and renewal (d)
Professional fee
Depreciation (e)
Subscription & donation
Facilities expenses
Training expenses
Office maintenance
Security & cleaning
Newspaper & magazine
Internship allowances
Computer accessories
Vehicle expenses
Website expenses
Write off of preliminary expenses
Amount in Taka
Utilities
Electricity bill
Telephone bill
Wasa bill
Water bill (Drinking)
Fuel-generator
Internet bill
Software
30,000
4,200
82,500
186,185
54,000
10,700
2,500
70,000
20,400
157,600
408,530
1,223,078
307,638
283,875
23,538
2,246,659
256,748
2,503,407
194,867
589,213
140,806
136,104
1,060,990
53,479
1,114,469
687,270
4,498,211
2,146,337
10,086
7,341,905
283,956
1,921,646
373,973
3,989
2,583,564
Direct expenses
Howla
Laga
CDBL charge
Investor protection fund
22
24,000
36,500
8,985
21
2011
Amount in Taka
Bank Guarantee
As per trading rules of Dhaka Stock Exchange, Bank Guarantee is required for transactions (Buy) in a day
exceeding Tk.5 crore. Prime Bank Securities Limited has received Bank Guarantee for Tk.15 crore from Prime
Bank Limited, Motijheel Branch, Dhaka. Documents related to the Bank Guarantee have been submitted to
Dhaka Stock Exchange.
2,165,885
10,387,589
5,902,620
Software
Particulars
658,600
658,600
869,275
Cost
Addition
Disposal
during the
during the
year
year
1,800
412,490
338,700
71,990
Cost
Addition
Disposal
during the
during the
year
year
869,275
Opening
balance
Schedule of amortization
as at December 31, 2012
1,135,500
Air conditioners
Vehicles
1,183,584
Opening
balance
Office equipment
Particulars
Schedule of depreciation
as at December 31, 2012
1,527,875
1,527,875
Total Cost
2,167,685
10,800,079
5,902,620
338,700
1,135,500
1,255,574
Total cost
Rate
Rate
0.20
0.20
0.25
0.20
0.25
0.25
53,479
53,479
Opening
balance
194,867
1,060,990
589,213
136,104
140,806
Opening
balance
256,748
256,748
Amortization
Charged
Disposal
during the during the
year
year
408,530
2,246,659
1,223,078
23,537.54
283,875
307,638
Depreciation
Charged
Disposal
during the during the
year
year
310,228
310,228
Total
amortization
603,397
3,307,649
1,812,291
23,538
419,979
448,444
Total
depreciation
1,217,647
1,217,647
Total
written
down value
1,564,288
7,492,430
4,090,329
315,162
715,521
807,130
Total
written
down value
Annexure-A
52,000
Unique Hotel
84,000
400,000
60,000
100,000
56,160
Jamuna Oil
100,000
115,000
DESCO
110,000
Quantity
Instrument
Investment in securities
as at December 31, 2012
59.73
127.70
77.94
27.11
76.72
87.63
42.76
251.17
93.23
41.62
Rate
77,051,850
5,972,735
6,640,500
6,546,850
10,844,135
4,602,900
8,763,100
4,276,300
14,105,710
10,721,200
4,578,419
Total cost
38.10
126.20
44.60
22.80
37.40
59.00
32.90
178.50
72.10
26.80
Market rate
55,936,860
3,810,000
6,562,400
3,746,400
9,120,000
2,244,000
5,900,000
3,290,000
10,024,560
8,291,500
2,948,000
Market value
(21,114,990)
(2,162,735)
(78,100)
(2,800,450)
(1,724,135)
(2,358,900)
(2,863,100)
(986,300)
(4,081,150)
(2,429,700)
(1,630,419)
Gain / loss
Annexure-B
At end of
of financial
financial
year
year
Tanjil Chowdhury
Sharmila Gunasingham
Name of directors
The Company
(Ordinary shares)
Except as disclosed in this report, no directors who held office at the end of the financial year had interests in shares, share
options, warrants or debentures of the Company, or of the related corporation, either at the beginning of the financial year
or at the end of the financial year.
no options granted by the Company to any person to take up unissued shares of the Company; and
no shares issued by virtue of any exercise of option to take up unissued shares of the Company.
At the end of the financial year, there were no unissued shares of the Company under option.
AUDITORS
The auditors, C. C. Yang & Co., have expressed their willingness to accept re-appointment.
Tanjil Chowdhury
18 February 2013
30 January 2013
Statement by Directors
Prime Exchange Co. Pte. Ltd.
In the opinion of the directors,
(a) the accompanying financial statements set out in the following sections of the financial statements:
Notes, comprising a summary of significant accounting policies and other explanatory information
are drawn up so as to give a true and fair view of the state of affairs of the Company as at 31 December 2012
and the results, changes in equity and cash flows of the Company for the financial year then ended; and
(b) at the date of this statement, there are reasonable grounds to believe that the Company will be able to pay its debts as
and when they fall due.
Tanjil Chowdhury
SINGAPORE
18 February 2013
Commission Income
2012
2011
560,416
314,463
5,120
5,850
Other Income
(305,034)
(259,718)
Depreciation
(230,249)
(229,427)
259,663
336,435
(348,080)
(263,176)
141,836
104,427
(13,401)
4,249
128,435
108,676
$ 128,435
$ 108,676
2012
2011
ASSETS
Non-Current Assets
Other Receivables
9, 10
10
78,104
41,618
78,104
41,618
90,749
39,252
571,851
540,878
814,067
731,483
$ 892,171
$ 773,101
250,000
250,000
719,778
591,343
6,615
2,869
6,615
2,869
156,312
178,556
165,778
178,889
$ 892,171
$ 773,101
151,467
151,353
Share Capital
11
Retained Earnings
Total Equity
Non-Current Liabilities
Deferred Tax Liabilities
12
13
469,778
341,343
9,466
333
Note
Balance at 1.1.2011
Share
Capital
$
250,000
Total Comprehensive
Income for the Year - 2011
Retained
Earnings
$
Total
$
330,737
580,737
108,676
108,676
( 98,070)
( 98,070)
( 98,070)
( 98,070)
341,343
591,343
128,435
128,435
$ 469,778
$ 719,778
Distributions to Owner
Dividends
16
Balance at 31.12.2011
250,000
Total Comprehensive
Income for the Year - 2012
$ 250,000
Balance at 31.12.2012
2012
$
2011
$
141,836
104,427
30,249
29,427
171,965
133,004
Adjustments For:
Depreciation
Interest Income
(120)
Decrease (Increase) in
(850)
Other Receivables
(37,815)
15,331
(22,244)
83,492
111,906
231,827
114
865
Increase in
(522)
Interest Received
Net Cash Flows From Operating Activities
(4,056)
111,498
228,636
(66,735)
(56,506)
(66,735)
(56,506)
(98,070)
(13,676)
(13,676)
(98,070)
31,087
74,060
692,231
618,171
$ 723,318
$ 692,231
Net Increase in
10
CORPORATE INFORMATION
Prime Exchange Co. Pte. Ltd. is a limited liability company incorporated and domiciled in the Republic of Singapore
whose registered office and principal place of business is located at 2A Desker Road Singapore 209549 and
another branch at Block 134 #01-305 Jurong Gateway Road Singapore 600134.
The Company is a wholly-owned subsidiary of PRIME BANK LIMITED, incorporated in Bangladesh, which is also
the Companys ultimate holding company.
The principal activities of the Company are to carry on the remittance business and to undertake and participate in
transactions, activities and operations commonly carried on or undertaken by remittance and exchange house.
2.
Basis of preparation
The financial statements of the Company have been prepared in accordance with Singapore Financial
Reporting Standards (FRS) and the applicable requirements of the Singapore Companies Act.
The financial statements have been prepared on the historical cost basis except as disclosed in the
accounting policies below.
Functional currency
The management has determined the currency of the primary economic environment in which the Company
operates i.e. functional currency, to be the Singapore dollars. Revenue and major costs of providing
services including major operating expenses are primarily influenced by fluctuations in Singapore dollars.
The financial statements are presented in Singapore dollars.
2.2
The Company has not adopted the following standards and interpretations that have been issued but are
only effective for annual financial periods beginning on or after the respective dates.
Effective 1 July 2012
Amendments to FRS 1
- Employee Benefits
FRS 113
Amendments to FRS 16
Amendments to FRS 32
Revised FRS 28
FRS 110
FRS 111
- Joint Arrangements
FRS 112
Amendments to FRS 32
Except for the Amendments to FRS 1 and FRS 112, the directors expect that the adoption of the other
standards and interpretations above will have no material impact on the financial statements in the
period of initial application. The nature of the impending changes in accounting policy on adoption of the
Amendments to FRS 1 and FRS 112 is described below.
(OCI). Items that could be reclassified to profit or loss at a future point in time would be presented
separately from items which will never be reclassified. As the Amendments only affect the presentations
of items that are already recognised in OCI, the Company does not expect any impact on its financial
position or performance upon adoption of this standard.
2.4
3 years
Office equipment
3 years
Renovation
3 years
Fully depreciated assets are retained in the accounts until they are no longer in use and no further charge
for depreciation is made in respect of these assets.
The carrying values of property, plant and equipment are reviewed for impairment when events or changes
in circumstances indicate that the carrying value may not be recoverable.
The residual value, useful life and depreciation method are reviewed at the end of each reporting year to
ensure that the amount, method and period of depreciation are consistent with previous estimates and
the expected pattern of consumption of the future economic benefits embodied in the items of property,
plant and equipment.
An item of property, plant and equipment is derecognised upon disposal or when no future economic
benefits are expected from its use or disposal. Any gain or loss arising on derecognition of the asset is
included in the profit or loss in the financial year the asset is derecognised.
Annual Report 2012 370
impaired and is written down to its recoverable amount. In assessing value in use, the estimated future
cash flows expected to be generated by the asset are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific
to the asset. In determining fair value less costs to sell, recent market transactions are taken into account,
if available. If no such transactions can be identified, an appropriate valuation model is used. These
calculations are corroborated by valuation multiples or other available fair value indicators.
Impairment losses are recognised in the profit or loss except for assets that are previously revalued where
the revaluation was taken to other comprehensive income. In this case, the impairment is also recognised
in other comprehensive income up to the amount of any previous revaluation.
An assessment is made at each reporting date as to whether there is any indication that previously
recognised impairment losses may no longer exist or may have decreased. If such indication exists, the
Company estimates the assets or cash-generating units recoverable amount. A previously recognised
impairment loss is reversed only if there has been a change in the estimates used to determine the
assets recoverable amount since the last impairment loss was recognised. If that is the case, the carrying
amount of the asset is increased to its recoverable amount. That increase cannot exceed the carrying
amount that would have been determined, net of depreciation, had no impairment loss been recognised
previously. Such reversal is recognised in the profit or loss unless the asset is measured at revalued
amount, in which case the reversal is treated as a revaluation increase.
2.6
Financial assets
Financial assets are recognised on the statement of financial position when, and only when, the Company
becomes a party to the contractual provisions of the financial instrument. The Company determines the
classification of its financial assets at initial recognition.
Non-derivative financial assets with fixed or determinable payments that are not quoted in an active
market are classified as loans and receivables. Such assets are initially recognised at fair value, plus
directly attributable transaction costs and subsequently carried at amortised cost using the effective
interest method less impairment. Gains and losses are recognised in the profit or loss when the loans and
receivables are derecognised or impaired, and through the amortisation process.
A financial asset is derecognised when the contractual right to receive cash flows from the asset has
expired. On derecognition of a financial asset in its entirety, the difference between the carrying amount
and the sum of the consideration received and any cumulative gain or loss that has been recognised
directly in other comprehensive income is recognised in the profit or loss.
2.8
2.9
Provisions
Provisions are recognised when the Company has a present obligation (legal or constructive) as a result
of a past event, it is probable that an outflow of resources embodying economic benefit will be required to
settle the obligation and the amount of the obligation can be estimated reliably.
Provisions are reviewed at the end of each reporting year and adjusted to reflect the current best estimate.
If it is no longer probable that an outflow of economic resources will be required to settle the obligation,
the provision is reversed. If the effect of the time value of money is material, provisions are discounted
using a current pre tax rate that reflects current market assessments of the time value of money and the
risks specific to the liability. When discounting is used, the increase in the provision due to the passage of
time is recognised as a finance cost.
2.10
Financial liabilities
Financial liabilities are recognised on the statement of financial position when, and only when, the Company
becomes a party to the contractual provisions of the financial instrument. The Company determines the
classification of its financial liabilities at initial recognition.
All financial liabilities are recognised initially at fair value plus in the case of financial liabilities not at fair
value through profit or loss, directly attributable transaction costs.
Subsequent to initial recognition, derivatives are measured at fair value. Other financial liabilities (except
for financial guarantee) are measured at amortised cost using the effective interest method.
For financial liabilities other than derivatives, gains and losses are recognised in the profit or loss when
the liabilities are derecognised, and through the amortisation process. Any gains or losses arising from
changes in fair value of derivatives are recognised in the profit or loss. Net gains or losses on derivatives
include exchange differences.
Employee benefits
Defined contribution plan
As required by law, the Company makes contributions to the Central Provident Fund (CPF) scheme in
Singapore, a defined contribution pension scheme. CPF contributions are recognised as compensation
expenses in the same period as the employment that gives rise to these contributions.
2.12
Leases
Operating leases
Leases where substantially all the risks and rewards incidental to ownership are retained by the lessors
are classified as operating leases. Operating lease payments are recognised as an expense in the profit
or loss on a straight-line basis over the lease term.
The aggregate benefit of incentives provided by the lessor is recognised as a reduction of rental expense
over the lease term on a straight-line basis.
2.13
Revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company
and the revenue can be reliably measured regardless of when the payment is made. Revenue is measured
at the fair value consideration received or receivable, taking into account contractually defined terms of
payments and excluding taxes or duty. The following specific recognition criteria must also be met before
revenue is recognised:
Revenue from rendering of services is recognised upon completion and delivery of services to the
customers.
Interest income is recognised using the effective interest method.
2.14
Income taxes
(i)
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount
expected to be recovered from or paid to the Income Tax Authorities. The tax rates and tax laws
used to compute the amount are those that are enacted or substantively enacted at the end of
the reporting year.
Current taxes are recognised in the profit or loss except to the extent that the tax relates to items
recognised outside profit or loss, either in other comprehensive income or directly in equity.
Management periodically evaluates positions taken in the tax returns with respect to situations
in which applicable tax regulations are subject to interpretation and establishes provisions where
appropriate.
(ii)
Deferred tax
Deferred tax is provided, using the liability method, on all temporary differences at the end of
the reporting year between the tax bases of assets and liabilities and their carrying amounts for
financial reporting purposes.
(iii)
Sales tax
Revenues, expenses and assets are recognised net of the amount of sales tax except:
Where the sales tax incurred on a purchase of assets or services is not recoverable from the
taxation authority, in which case the sales tax is recognised as part of the cost of acquisition
of the asset or as part of the expense item as applicable; and
Receivables and payables that are stated with the amount of sales tax included.
The net amount of sales tax recoverable from, or payable to, the taxation authority is included as
part of receivables or payables in the statement of financial position.
2.15
Share capital
Proceeds from issuance of ordinary shares are recognised as share capital in equity. Incremental costs
directly attributable to the issuance of ordinary shares are deducted against share capital, net of any tax
effects.
2.17
Dividend
Interim dividend is recorded in the financial year in which it is declared payable. Final dividend is recorded
in the financial year in which the dividend is approved by the shareholders.
2.18
OTHER INCOME
Interest income
SME cash grant
4.
2012
$
120
5,000
5,120
2012
$
2011
$
850
5,000
5,850
2011
$
287,226
242,706
17,808
$ 305,034
17,012
$ 259,718
The above includes remuneration of key management personnel as shown in Note 15(b) to the financial statements.
5.
OTHER EXPENSES
The following items have been included in arriving at other expenses:
2012
$
Advertisement
Bank charges
Entertainment
Insurance
Office rental
Professional and legal fees
Software rental
Telephone charges
Transportation
Travelling
Utilities
6.
12,980
41,871
12,441
28,608
117,050
25,496
21,128
13,976
11,326
15,409
2012
$
9,466
4,128
13,594
189
(382)
$ 13,401
2011
$
3,647
1,204
19,085
12,886
102,000
8,076
19,558
18,064
12,283
7,660
12,696
2011
$
333
398
731
( 5,244)
264
$ (4,249)
7.
2012
2011
$ 141,836
$ 104,427
24,112
17,753
2,973
(850)
( 850)
(2,326)
(15,177)
(10,315)
(999)
189
(382)
$ 13,401
(5,244)
264
$ (4,249)
2012
Furniture
& fittings
$
Office
equipment
$
Renovation
$
Total
$
Cost:
At 1.1.2012
Additions
7,142
-
66,242
22,991
104,858
43,744
178,242
66,735
At 31.12.2012
7,142
89,233
148,602
244,977
At 1.1.2012
Depreciation
for the year
6,207
52,231
78,186
136,624
698
12,125
17,426
30,249
At 31.12.2012
6,905
64,356
95,612
166,873
237
$ 24,877
$ 52,990
$ 78,104
Accumulated
depreciation:
2011
Furniture
& fittings
$
Office
equipment
$
Renovation
$
Total
$
Cost:
At 1.1.2011
Additions
6,432
710
50,454
15,788
64,850
40,008
121,736
56,506
At 31.12.2011
7,142
66,242
104,858
178,242
At 1.1.2011
Depreciation
for the year
5,490
42,261
59,446
107,197
717
9,970
18,740
29,427
At 31.12.2011
6,207
52,231
78,186
136,624
$ 935
$ 14,011
$ 26,672
$ 41,618
Accumulated
depreciation:
OTHER RECEIVABLES
Non-trade receivable
- Holding company (Note 1)
Interest receivable
Deposits
Prepayments
2012
$
13,676
8
69,750
7,315
$ 90,749
2011
$
2
34,000
5,250
$ 39,252
The non-trade receivable from holding company is unsecured, interest-free and repayable on demand. The amount
is to be settled in cash.
9.
10.
2012
$
2011
$
571,851
151,467
$ 723,318
540,878
151,353
$ 692,231
Singapore Dollars
Taka
2011
$
550,060
648,973
$ 723,318
$ 692,231
173,258
43,258
The fixed deposits placed with a bank mature within 12 months (2011 12 months) from the end of the reporting
year and bear interest at 0.25% - 0.75% (2011 - 0.25% - 0.75%) per annum.
11.
SHARE CAPITAL
Issued and fully paid
250,000 (2011 250,000)
ordinary shares
2012
2011
$ 250,000
$ 250,000
The holder of ordinary shares is entitled to receive dividends as and when declared by the Company. All ordinary
shares of no par value carry one vote per share without restriction.
12.
2012
2011
$ 6,615
$ 2,869
The movements in deferred tax liabilities during the year are as follows:
Accelerated
Tax
Depreciation
Total
Balance at 1.1.2011
Charged to profit or loss 2011
2,207
2,207
398
398
Balance at 31.12.2011
2,869
2,869
4,128
4,128
Balance at 31.12.2012
$ 6,615
$ 6,615
264
(382)
264
(382)
Accruals
Funds received from customers (Note 9)
14.
2012
$
2011
$
7,462
148,850
$ 156,312
6,853
171,703
$ 178,556
2012
$
2011
$
162,000
607,500
$ 769,500
98,000
54,000
$ 152,000
9,940
1,064
2011
$
5,726
1,070
912
2012
2011
$ 196,000
$ 72,000
2012
2011
$ 98,070
DIVIDENDS
FINANCIAL INSTRUMENTS
The Companys financial instruments comprise financial assets and liabilities. Financial assets and liabilities mainly
relate to receivables and payables which arise directly from its operations.
Financial risk management objectives and policies
The main purpose for holding or issuing financial instruments is to raise and manage the finances for the Companys
operating, investing and financing activities. There is exposure to the financial risks on the financial instruments
such as credit risk, liquidity risk, market risk comprising interest rate risk, foreign currency risk and other price risk
exposures. The management has certain practices for the management of financial risks. However, these are not
documented in formal written documents. The following guidelines are followed: All financial risk management
activities are carried out and monitored by senior management staff. All financial risk management activities are
carried out following good market practices.
The Company does not hold or issue derivative financial instruments for trading purposes or to hedge against
fluctuations in interest and foreign exchange rates.
The following sections provide details regarding the Companys exposure to the above-mentioned financial risks
and the objectives, policies and processes for the management of these risks.
Credit risk
Credit risk is the risk of loss that may arise on outstanding financial instruments should a counterparty default on
its obligations. The Companys exposure to credit risk arises primarily from other receivables. For other financial
assets (including cash and cash equivalents), the Company minimises credit risk by dealing exclusively with high
credit rating counterparties.
The Company has significant concentration of credit risk with regards to amount due from holding company (Note
8). The Company has policies in place to ensure that transactions are entered into only with counterparties that
are of acceptable credit quality.
The maximum exposure to credit risk is represented by the net carrying amount of financial assets recorded in the
financial statements.
Other receivables that are neither past due nor impaired are creditworthy debtors with good payment record with
the Company. Cash and short-term deposits that are neither past due nor impaired are placed with or entered into
with reputable financial institutions or companies with high credit ratings and no history of default.
Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting financial obligations due to shortage
of funds. The Companys exposure to liquidity risk arises primarily from mismatches of the maturities of financial
assets and liabilities.
The Company ensures that there are adequate funds available to meet all its operational requirements.
As at the end of the reporting year, the expected contractual undiscounted cash outflows of financial liabilities are
due in less than a year.
Interest rate risk
Interest rate risk is the risk that the fair value or future cash flows of the Companys financial instruments will
fluctuate because of changes in market interest rates. The Company has no exposure to interest rate risks as
interest arising primarily from fixed deposits is fixed and does not fluctuate with changes in market interest rate.
17.
18.
19.
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company
make judgements and accounting estimates that are reasonable and prudent;
will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the companys
transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them
to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding
the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other
irregularities.
Statement of disclosure to auditors
So far as the directors are aware, there is no relevant audit information of which the companys auditors are unaware.
Additionally, the directors have taken all the necessary steps that they ought to have taken as directors in order
to make themselves aware of all relevant audit information and to establish that the companys auditors are aware
of that information.
give a true and fair view of the state of the companys affairs as at 31 December 2012 and of its loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
adequate accounting records have not been kept, or returns adequate for our audit have not been received
from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit; or
the directors were not entitled to prepare the financial statements and the directors report in accordance with the small
companies regime.
Note
Turnover
Administrative expenses
2012
2011
265,590
162,501
(381,378)
(312,591)
(115,788)
(150,090)
(115,788)
(150,090)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
There are no recognised gains and losses other than those passing through the profit and loss account.
Balance Sheet
as at 31 December 2012
2011
2012
Notes
Fixed assets
Tangible assets
146,209
134,948
Current assets
Debtors
15,000
51,568
188,503
85,129
203,503
136,697
(202,463)
(58,608)
1,040
78,089
147,249
213,037
500,000
450,000
(352,751)
(236,963)
Shareholders funds
147,249
213,037
These financial statements have been prepared in accordance with the provisions applicable to companies subject to
the small companies regime within Part 15 of the Companies Act 2006.
Approved by the Board and authorised for issue on 18 February 2013
2012
80,382
(104,325)
Capital expenditure
Payments to acquire tangible assets
(27,008)
(7,133)
(27,008)
(7,133)
53,374
(111,458)
Financing
Issue of ordinary share capital
Net cash inflow from financing
Increase in cash in the year
50,000
150,000
50,000
150,000
103,374
38,542
2012
2011
(115,788)
(150,090)
15,747
17,888
Decrease/(increase) in debtors
36,568
(12,130)
143,855
40,007
80,382
(104,325)
Operating loss
1 January
2012
Cash flow
31 December
2012
85,129
103,374
188,503
85,129
103,374
188,503
2012
2011
103,374
38,542
103,374
38,542
85,129
46,587
188,503
85,129
Net cash:
Cash at bank and in hand
Bank deposits
Net funds
Accounting policies
1.1
Accounting convention
The financial statements are prepared under the historical cost convention.
1.2
(United Kingdom Generally Accepted Accounting Practice), which have been applied consistently (except
as otherwise stated).
1.3
Turnover
Turnover represents amounts received as commission from customers.
1.4
Computer equipment
1.5
the date of transaction. At each statement of financial position date, recorded monetary balances that are
denominated in a foreign currency are adjusted to reflect the rate at the statement of financial position date. All
realized and unrealized exchange adjustment gains and losses are taken to the statement of movements on profit
and loss account.
2
Operating loss
2012
2011
15,747
17,888
2012
2011
(115,788)
(150,090)
Taxation
Total current tax
Factors affecting the tax charge for the year
Loss on ordinary activities before taxation
Loss on ordinary activities before taxation multiplied by standard rate of UK
corporation tax of 0.00% (2011 - 0.00%)
Current tax charge for the year
On the basis of these financial statements no provision has been made for corporation tax.
Land and
buildings
Plant and
machinery etc
146,323
13,582
Total
Cost
At 1 January 2012
Additions
159,905
27,009
27,009
173,332
13,582
186,914
At 1 January 2012
20,410
4,548
24,958
12,308
3,439
15,747
At 31 December 2012
32,718
7,987
40,705
At 31 December 2012
140,614
5,595
146,209
At 31 December 2011
125,914
9,034
134,948
2012
2011
15,000
51,568
2012
2011
At 31 December 2012
Depreciation
Debtors
Other debtor
6,873
2,727
195,590
55,881
202,463
58,608
The cash and bank balances include an amount 185,672 received from customer for outward remittance
at period end date. The amount was subsequently remitted on 02 January 2013. The payable amount is included
within the balance of other creditors.
7
Share capital
Allotted, called up and fully paid
500,000 Ordinary of 1 each
2012
2011
500,000
450,000
Profit and
loss account
(236,963)
(115,788)
10
(352,751)
2012
2011
(115,788)
(150,090)
50,000
150,000
(65,788)
(90)
213,037
213,127
147,249
213,037
Control
The ultimate controlling party is Prime Bank Limited which is a public limited company registered in
Bangladesh.
Remittance business.
There being no provision in the Companys articles of association in connection with the retirement of directors by rotation,
all existing directors continue in office for the following year.
The Company did not enter into any contract, other than the contracts of service with the directors or any person engaged
in the full-time employment of the Company, whereby any individual, firm or body corporate undertakes the management
and administration of the whole, or any substantial part of any business of the Company.
Chairman
Date : 18th February, 2013
Interest income
Interest expenses
10
Year ended
Period ended
31.12.2012
31.12.2011
HK$
HK$
6,407,656
1,417,470
(2,097,317)
(340,936)
4,310,339
1,076,534
3,556,575
345,045
7,866,914
1,421,579
(1,863,731)
(555,713)
(28,030)
(5,516)
(809,311)
(485,487)
(2,701,072)
(1,046,716)
5,165,842
374,863
(845,043)
(60,038)
4,320,799
314,825
314,825
4,635,624
314,825
2012
2011
HK$
HK$
Non-current assets
Property, plant and equipment
10
93,620
48,776
118,242,546
54,680,501
168,835
109,200
1,181,256
1,449,532
119,592,637
56,239,233
Current assets
Discounted bills receivable
Deposits, prepayments and other receivables
Cash and bank balances
Current liabilities
Accrued liabilities and other payables
Amount due to ultimate holding company
11
1,022,952
274,986
110,190,600
53,408,160
905,081
60,038
112,118,633
53,743,184
7,474,004
2,496,049
7,567,624
2,544,825
2,932,000
2,230,000
4,635,624
314,825
7,567,624
2,544,825
Equity
Share capital
Retained earnings
12
The financial statements on pages 5 to 15 were approved and authorised for issue by the Board of Directors on 18th
February, 2013 and are signed on its behalf by:
Director
Director
Year ended
Period ended
HK$
HK$
31.12.2012
31.12.2011
Operating activities
Profit before taxation
5,165,842
374,863
28,030
5,516
5,193,872
380,379
(63,562,045)
(54,680,501)
(59,635)
(109,200)
747,966
274,986
56,782,440
53,408,160
(897,402)
(726,176)
(72,874)
(54,292)
(72,874)
(54,292)
702,000
2,230,000
702,000
2,230,000
(268,276)
1,449,532
1,449,532
1,181,256
1,449,532
1,181,256
1,449,532
Adjustments for :
Depreciation
10
10
12
General Information
PBL Finance (Hong Kong) Limited (the Company) is a limited company incorporated in Hong Kong. The address
of its registered office and principal place of business is Room 608, 6th Floor, Admiralty Centre, Tower Two, 18
Harcourt Road, Hong Kong. The principal activities of the Company are money lending in Hong Kong and provides
the following services:-
2.
33 1/3%
33 1/3%
If there is an indication that there has been a significant change in the depreciation rate, useful life or residual value
of an asset, the depreciation of that asset is revised prospectively to reflect the new expectations.
An assets carrying amount is written down immediately to its recoverable amount if the assets carrying amount is
greater than its estimated recoverable amount.
(b) Trade and other receivables
Trade and other receivables are recognised initially at the transaction price. They are subsequently measured at
amortised cost using the effective interest method, less provision for impairment. A provision for impairment of trade
receivables is established when there is objective evidence that the Company will not be able to collect all amounts
due according to the original terms of the receivables.
(c) Cash and cash equivalents
Cash and cash equivalents includes cash on hand, demand deposits and other short-term highly liquid investments
with original maturities of three months or less. Bank overdraft is shown within borrowings in current liabilities on the
statement of financial position.
(d) Trade and other payables
Trade and other payables are recognised initially at the transaction price and subsequently measured at amortised
cost using the effective interest method.
from the rendering of confirming and advising, checking, telex, postage and other services, when the services
are rendered; and
(ii)
interest income; on an accrual basis using the effective interest method by applying the rate that discounts the
estimated future cash receipts through the expected life of the financial instrument to the net carrying amount
of the financial asset.
A person or a close member of that persons family is related to the Company if that person:
(a)
(b)
(c)
(ii)
is a member of the key management personnel of the Company or of a parent of the Company;
has control over the Company; or
has joint control or significant influence over the reporting entity or has significant voting power in it.
the entity the Company are members of the same group (which means that each parent, subsidiary and
fellow subsidiary is related to the others).
either entity is an associate or joint venture of the other entity (or of a member of a group of which the other
entity is a member).
both entities are joint ventures of a third entity.
either entity is a joint venture of a third entity and the other entity is an associate of the third entity.
the entity is a post-employment benefit plan for the benefit of employees of either the Company or an
entity related to the Company. If the reporting entity is itself such a plan, the sponsoring employers are also
related to the plan.
the entity is controlled or jointly controlled by a person identified in (i).
a person identified in (i)(a) has significant voting power in the entity.
4.
Interest Expenses
Year ended
31.12.2012
HK$
7,417
2,089,900
2,097,317
Year ended
31.12.2012
HK$
Period ended
31.12.2011
HK$
85
340,851
340,936
Period ended
31.12.2011
HK$
410,906
1,698,793
1,071,246
375,630
3,556,575
43,449
56,127
244,179
1,290
345,045
Directors Remuneration
Directors remuneration disclosed pursuant to Section 161 of the Hong Kong Companies Ordinance is as follows :Year ended
31.12.2012
HK$
Fees
Other emoluments
7.
Period ended
31.12.2011
HK$
-
8.
18,000
28,030
Period ended
31.12.2011
HK$
15,000
5,516
845,043
Period ended
31.12.2011
HK$
60,038
The provision for Hong Kong Profits Tax is calculated at 16.5% (2011 : 16.5%) of the estimated assessable profit for the year.
No deferred tax has been provided as the effect of all temporary difference is immaterial.
10.
Cost
Office
equipment
HK$
Furniture
HK$
Total
HK$
38,292
72,874
111,166
16,000
16,000
54,292
72,874
127,166
3,740
22,702
26,442
1,776
5,328
7,104
5,516
28,030
33,546
84,724
34,552
8,896
14,224
93,620
48,776
12.
Share Capital
2012
HK$
2011
HK$
3,500,000
3,500,000
Issued and fully paid :2,932,000 (2011: 2,230,000) ordinary shares of HK$1 each
2,932,000
2,230,000
Pursuant to an ordinary resolution passed on 3rd September, 2012 the issued share capital of the Company was increased
from HK$2,230,000 to HK$2,932,000 by the issue of 702,000 ordinary shares of HK$1 each for cash at par.
13.
64,689,036
1,148,843
852,089
35,786,086
110,114
257,986
2,089,900
340,851
480,000
320,000
At the year-end, the Company had outstanding commitments under non-cancellable operating leases that fall due as
follows:
2012
2011
HK$
HK$
Within one year
In the second to fifth years, inclusive
15.
180,000
-
240,000
-
180,000
240,000
Opening of Brahmanbaria
branch
Branch Network
Dhaka Division
Bashaboo Branch
Shapnil (2nd & 3rd Floor), 60-61 South
Bashaboo, Dhaka
PABX : (02) 7219201, 7219205
Direct : (02) 7219206, Cell: 01730-373920
(HOB),01720-038505(OM)
Fax : (02) 7219205
Boalmari Branch
Ajhar Tower, 503 Station Road,
Boalmari, Faridpur
PABX : (06324) 56132, Direct : (06324)
56130, Cell : 01755-607991(HOB)
FAX : (06324) 56139
Gulshan Branch
Plot # 01, Block-CEN(H), Road # 109
Gulshan Avenue (Near Wonder Land),
Dhaka-1212
PABX : (02) 9890898, 9886171,
8815885, Direct : (02) 9862937, Cell :
01714-039546 (HOB) 01711-628187 (OM),
Fax : (02) 8820276
Dhanmondi Branch
Mamtaz Plaza (1st Floor) House # 7,
Road # 4, Dhanmondi R/A, Dhaka
PABX : (02) 8622304, 8621556,
Direct : (02) 9662704, 8621557
Cell : 0173-00-61489 (HOB), 01713-069632
(OM) . Fax : (02) 9662705
Damudya Branch
Holding # 264 (1st & 2nd floor), Sadar Road
P.S: Damudya, Dist: Shariatpur
PABX : (06023) 56396,
Cell : 0173 00 96615 (HOB)
Fax : (06023) 56390
Dhaka Club Booth
Dhaka Club, Ramna, Dhaka-1000
(02) 8627138, 8619180-4/129,
01711-882230
Elephant Road Branch
Ananta Plaza, 136,Elephant Road
Dhaka-1205
PABX : (02) 9662776-7, 8622592,
Direct : (02) 9673783, 9673786,
Cell : 01713-080386 (HOB) , 01730
-016896 (OM)
Fax (02) 8622591
Foreign Exchange Branch
Al-Haj Mansion, 82, Motijheel C/A
Dhaka-1000
PABX : (02) 9551682,9564976,
Direct : (02) 7161146, 9570751,
7162679, Cell : 01713-279701 (HOB)
01711-836618 (OM), 01711-809295
Fax : (02) 9553078
Faridpur Branch
KMA Arcadia (1st floor), Holding #
60/116/A, Moirapotty, Faridpur
PABX : (0631) 65133,
Cell : 0173 03 27673 (HOB),
Fax : (0631) 65128
Ganakbari Branch
Somsher Plaza (1st floor), (Opposite
Dhaka EPZ), Balibhadra Bazar Bas
stand, Dhamsona, Ganakbari Savar, Dhaka-1340
PABX : (02) 7788100,7788897,
Direct : (02) 7788896, Cell : 01711628192 (HOB), 01714-071123 (OM)
Fax : (02) 7789378
Hemayetpur Branch
Madhu Bhaban, Hemayetpur, Saver, Dhaka
Cell : 0173-07-81154 (HOB), 0173071175 (OM),
Tele Fax : (02) 7742096
Islamic Banking Branch, Dilkusha
19, Dilkusha C/A Dhaka-1000
PABX : (02) 9567227, 7169071,
7165796, 7160859, 9514928, 7160859
Direct: (02) 7169401, Cell : 01711401248 (HOB), 01714-014889 (OM)
Fax : (02) 9567228
Islamic Banking Branch, Mirpur
Mamoni Tower, 1244 East Monipur
Begum Royeya Sarani, Mirpur, Dhaka-1216
PABX : (02) 8058371,8057682,
Direct : (02) 8057681,
Cell: 01730-031817 (HOB), 01714098072 (OM)
Fax : (02) 8057441
Ibrahimpur Branch
Sumona Sahadat Center, 80, Ibrahimpur
Kafrul, Dhaka-1206
PABX : (02) 8872503,8872423,
Direct : (02) 8872557,
Cell: 01755-582852 (HOB), 01755630320(OM)
Fax : (02) 8872501
Joydevpur Chowrasta Branch
Shapla Masnion (1st Floor)
Joydevpur Chowrasta, P.O. Chandana
Dhaka-Tangail Road Gazipur
PABX : (02) 9264103, 9264135,
Direct : (02) 9264142, 9264097,
Cell : 01713-068094 (HOB),
01730034863 (OM), Tele-Fax : (02)
9264097
Joypara Branch
Azahar Ali Mozahar Ali Shopping
Complex, Latakhola, Joypara, Dohar,
Dhaka
PABX : (02)7768054,(02)7768053,
Direct : (02)7768055, Cell : 0173 00 34861
(HOB), Cell : 0173 00 34862 (OM)
Fax : 02-7768052
Jatrabari Branch
Nur Tower, 76/Ga, Bibir Bagicha
North Jatrabari, Dhaka-1204
PABX : (02) 7552158, 7552178,
Cell : 01730 -317440 (HOB), 01730-338785 (OM)
Tele-Fax : (02) 7552169
Jamalpur Branch
Jibon Mantion, Station Road, Jamalpur
PABX : (0981) 65361, Direct (0981)
65360, Cell : 01755524165 (HOB)
01755-630325(OM),
Tele-Fax : (0981) 65362
Kawran Bazar Branch,
54, Kawran Bazar C/A., Dhaka-1215
PABX : (02) 91242967, Direct : (02)
8157288, 9145394, 9145397,
Cell : 01713-069926 (HOB),
01711-628188 (OM),
Fax : (02) 9129004
Kishoreganj Branch
Shamsuddin Bhuiyan Plaza,
Teripotty, Kishoreganj
Motijheel Branch
Adamjee Court Annexe Building-2
119-120, Motijheel C/A, Dhaka-1000
PABX: (02) 9567265, Direct: (02)
7175491, 9567225, 9559876, 9515341,
7175492, 9562982, Cell: 01714-015533
(HOB), 01714-048548 (OM)
Fax: (02) 9567223
Moulvi Bazar Branch
77/4, Moulvi Bazar, Dhaka-1100
PABX : (02) 7311017, 7313407,
Direct : (02) 7318305,
Cell : 01711-824628
(HOB), 01711-628481 (OM)
Tele-Fax : (02) 7318305
Mohakhali Branch
69,Mohakhali C/A. Dhaka-1212
PABX : (02)9882291,8826483,
8817210, Direct :8850302,9887188,
Cell: : 01730-320022 (HOB) . 01730320023(OM),
Fax : (02) 9886052
Mouchak Branch
Manhattan Tower (1st Floor), 83, Siddaswari Circular Road, Malibagh, Dhaka-1217
PABX : (02) 8352832, (02) 9347757,
(02) 9347757, Direct : (02) 8352831,
Cell : 01714-133334 (HOB)
01730-034864(MO),
Fax : (02) 9338883
Mirpur-1 Branch
Rabiul Plaza (1st floor), Plot # Shee1/Kha, Section # 1, Mirpur, Dhaka-1216
PABX : (02) 8034590,
Direct : (02) 8034126, 8054007,
Cell : 01819-216966
(HOB),01713255775(MO)
Fax : (02) 8034591
Madhabdi Branch
Plot # 17, Madhabdi Bazar Narsingdi-1604
PABX : (06257) 56682, Cell : 01711593583 (HOB), 01711-431364 (OM)
Fax : (06257) 56683
Mymensingh Branch
10, Swadeshi Bazar, Mymensingh
PABX : (091) 52390, 62228,
Direct : (091) 52391, 62243,
Cell : 01713-069631 (HOB), 01730351433 (OM)
Tele-Fax : (091) 52391
Mirzapur Branch
Nazmul traders Building, 1215 College Road
Mirzapur, Tangail
PABX: (09229) 56591, Direct: (09229) 56592
Cell:01730-727297
(HOB), 01755-607998 (OM)
Fax: (09229) 56593.
New Eskaton Branch
133, New Eskaton Road, Dhaka-1000
PABX : (02) 9354044, 9354738,
Direct : (02) 9359683, Cell : 01714071124 (HOB), 01714-016957 (OM)
Fax : (02) 9354826
Narayanganj Branch
Modern Model Complex, 56,S.M.Maleh
Road, Narayanganj-1400
PABX : (02) 7630150, Direct : (02)
7646894, 7645782,
Cell : 01714-069971 (HOB), 01711-628191 (OM)
Fax : (02) 7630140
Off-shore Banking Unit DEPZ, Savar, Dhaka
(02) 7788240, 01714-116173
Fax : (02) 7788241
Pragati Sarani Branch
Facilities Tower, Kha-199/2 Maddhya
Badda, Dhaka
PABX : (02) 9840689,8816938 Direct :
(02) 9840685, Cell : 01714033300(HOB), 01714-039719 (OM)
Fax : (02) 8837531
Panthapath Branch
Firoz Tower, 152/3-B, Green Road
Panthapath, Dhaka
PABX : (02) 9142879, Direct : (02)
8152852, 8128100, Cell : 01711-218967
(HOB), 01714-026650 (OM)
Fax : (02) 9137887
Pallabi Branch
Setaras Dream, 1/11 & 1/12 Pallabi
Mirpur, Dhaka
PABX : (02) 9000559, 9001913,`
Direct : (02) 9013629, Cell :
01755534924 (HOB), 01730-031816 (OM)
Fax : (02) 9001883
Ring Road Branch
Baitul Aman Tower (1st Floor) Holding
# 840/841, Ring Road, Adabor, Dhaka
PABX : (02) 8158866, Direct : (02)
9129093, Cell : 01714-133285 (HOB),
01714-133286 (OM),
Fax : (02) 8117010
Branch Network
Uttara Branch
Siaam Tower (1st Floor), Plot # 15, Sector
# 03, Dhaka Mymensingh Road, Uttara
Model Town, Dhaka
PABX : (02) 8916233, 8950341-2,
Direct : (02) 8950016, Cell : 01711-612438
(HOB), 01714-092081 (OM)
Fax : (02) 8924248
Wari Branch
Tanin Roseate, 43 Rankin Street, Wari, Dhaka
PABX : (02) 9512085,7118169 , Direct :
(02)-7118311, Cell : 01730-318786 (HOB),
01730-704146 (OM),
Fax : (02) 9512084
Chittagong Division
Agrabad Branch
Chittagong Chamber House
38, Agrabad C/A., Chittagong-4100
PABX : (031) 716724-5, Direct : (031)
2521659, 2526396, 2526397, 727018,
710970, 2526160 Cell : 01711-748400 (HOB),
01711-796636 (OM),
Fax : (031) 718971
Ashugonj Branch
Seriya Sayed Tower, Post Office Road,
Ashugonj Bazar, Ashugonj, Brahamanbaria
Direct: 08528-74595, PABX: 08528-74596,
Cell : 01755-534933. (HOB), 01755630304 OM)
FAX: (08528) 74594
Banshkhali Branch
G.S. Plaza (1st floor), Chittagonganshkhali Highway Jaldi, Banshkhali,
Chittagong
Tele-Fax : (0303) 756222, Cell : 0173033-8465 (HOB), 01730-359660(OM)
Fax: (0303) 756223
Brahmanbaria Branch
K Das Bhaban, K Das Square Brahmanbaria
PABX: 0851-61698,
Direct: 0851-61699, Cell : 01755-645488.
(HOB), 01730-781173 (MO)
FAX: 0851-58849
Coxs Bazar Branch
Hajera Shopping Center
Holding # 256, Main Road, Coxs Bazar
PABX : (0341) 51085, Direct : (0341)
51083, Cell : 01713-129263 (HOB)
Fax : (0341) 51084
Comilla Branch
10/8 & 9/7 Chatipatti (1st Floor) Rajgonj,
Comilla
PABX : (081) 72611, 72612,
Direct : (081) 72610, Cell : 01713-082803
(HOB), 01755534920 (OM)
Fax : (081) 72646
Chaumuhani Branch
Holding # 180-182 (1st floor); Feni Road,
Chaumuhani, Begumganj; Noakhali.
PABX : (0321) 54096, Cell : 0173 033
8459 (HOB), 01755645467 (OM).
Fax : (0321) 56096
Chauddagram Branch
Abdul Gani Shopping Complex (1st floor)
Chauddagram Bazar, Comilla
PABX : (08020) 56363-4,
Cell : 01730 318791 (HOB)
Tele-Fax : (08020) 56362
Dagonbhuiyan Branch
R.B Plaza, 391 Falizer Ghat,
Dagonbhuiyan, Feni
PABX: (03323) 79248, Direct: (03323) 79249
Cell: 01730-704145 (HOB)
Fax: (03323) 79250
Fatickchari Branch
Haji Hossain Plaza, College Road, Bibirhat,
Dhurang Union, Fatickchari, Chittagong
Direct : (03022) 56006,
Cell : 01713-103661 (HOB),
01730061480 (OM)
Tele-Fax : (03022) 56006
Feni Branch
Kazi Center, Holding # 106, S. S. K. Road,
Feni
PABX : (0331) 63091, 63093,
Direct : (0331) 63092, Cell : 01713-069623
(HOB)
Tele-Fax : (0331) 63092
Hathazari Branch
N. Zahur Shopping Center (1st Floor)
Kachari Road, Hathazari Chittagong
PABX: (031) 2601524, Direct: (031)
2601525, Cell: 01711- 809292 (HOB),
01730-351432(0M)
Fax : (031) 2601526
Halishahar Branch
Nandita House, Plot # 5/A, Lane # 2, Road
# 2, Block-G
Halishahar Housing Estate, Chittagong
PABX: (031) 2512039, Direct: (031)
2512064, Cell: 01713-255773 (HOB),
01729-215444 (OM)
Fax : (031) 2512054
Hajigonj Branch
Ananda Complex, Holding#191, Hajiganj
Bazar, Hajiganj, Chandpur
PABX: (08424) 75110, Cell: 0173 033
8463 (HOB), 01713-277687 (OM)
Fax : (08424) 75111
IBB, O. R. Nizam Road
739/804 City-A Avenue, Ctg, PABX : (031)
639855, 2861437,Cell : 01714-020266
(HOB), 1819311905( OM).
Fax : (031) 2861434
IBB, Pahartali
B S Plaza, Plot # 305/1390 Abdul Ali Hat,
Sorai Para Alanker Morr, P. S. Pahartali,
Chittagong
PABX: (031) 753143, Direct : (031)
2771751-2, 2773541-2, Cell : 01714025275 (HOB), 01730-091697 (OM),
Fax : (031) 753144
Vatiary Branch
Khaleque Tower, Bhatiary, Sitakunda,
Chittagong
PABX : (031) 2781261, Direct : (031)
2781263, Cell : 01755-545810 (HOB),
01755-545811 (OM),
Fax : (031) 2781262
Sylhet Division
Barolekha Branch
Hazi Abdul Ali Trade Center
842, Barelekha Pawrashava, Barelekha,
Moulvibazar
PABX : (08622) 56519, Direct : (08622)
56520, Cell : 0173-0311433
(HOB), 01755 630303(OM)
Fax : (08622) 56522
Beanibazar Branch
Zaman Plaza (1st Floor)
P. O. &. P. S. : Beanibazar, Dist : Sylhet
PABX : (08223) 56139, Direct : (08223) 56140,
Cell : 01714-100497 (HOB), 0173 00
91694 (OM), Fax : (08223) 56141
Biswanath Branch
Al-Burak Shopping Center (1st Floor)
Biswanath Bazar, Biswanath Sylhet
PABX : (08224) 56017,
Direct : (038911) 82480,
Cell : 01714-073330 (HOB),01755630309(OM), Fax : (08224) 56004
Court Road Branch
Court Road, Moulvi Bazar-3200
PABX : (0861) 53877,
Direct : (0861) 53878, 64940,
Cell : 01711-824364
(HOB), 01714-116172 (OM),
Fax : (0861) 53878
Habiganj Branch
Holding # 3794, Commercial Area,
Habiganj
PABX : (0831) 62814, Direct : (0831)
62813, Cell : 0173 03 51427 (HOB)
Fax : (0831) 62815
IBB, Amberichana
Kasablanca Tower (1st Floor) 182, Dargha
Gate, Sylhet-3100
PABX : (0821) 717332, Direct : (0821)
71733, Cell: 01711-824365 (HOB)
Fax : (0821) 717337
Islampur Branch
Century Park (1st Floor), Majortila Sylhet 3100.
PABX : (0821) 2861670, Direct : (0821)
2861669, Cell: 01755-645464 (HOB)
Fax : (0821) 2861668
Kadamtali Branch
Motin Complex, Fenchugonj Road,
Kadamtali, South Surma Sylhet
PABX : (0821) 840053, Direct : (0821)
840045, Cell -0175-5534926( HOB)
FAX : (0821) 840098
Nabiganj Branch
Anowara Biponi, Osmani Road, Nabiganj, Habiganj
PABX : (08328) 56025, Direct : (08328)
56029, Cell : 01713-255774 (HOB)
Fax : (08328) 56015
Sylhet Branch
Laldighirpar, Sylhet-3100
PABX : (0821) 721127, Direct : (0821)
710208, , 01711-824366 (HOB),
Fax : (0821) 710673
Subidbazar Branch
Corner View (1st Floor, West side)
980, Subidbazar, Sylhet
PABX : (0821) 727688, Direct : (0821)
727629, Cell : 01714-069967 (HOB)
Tele-Fax : (0821) 2830942
Sreemangal Branch
Saptadinga Complex (1st Floor)
145, Moulvibazar Road, Sreemangal
Moulvibazar
PABX : (08626) 71183, Direct : (08626)
71181, Cell : 01714-011578 (HOB),
01730373941 (OM),
Fax : (08626) 71182
Sunamganj Branch
Subakth Raja Complex
414 Old Station Road, Sunamganj
PABX: (0871) 62516, Direct: (0871) 62515
Cell: 0173-0373945 (HOB),01755630321(OM),
Fax: (0871) 62514
Tajpur Branch
Maya View Super Market (1st Floor)
P. O. : Tajpur. P. S. : Osmaninagar
Upozilla : Balaganj, Dist : Sylhet
PABX : 08242-56211, Direct : (0824)256210, Cell : 01714-100498 (HOB),01730351428 (OM)
Fax : 08242-56212
Upashahar Branch
Alif Center (1st Floor-Front Portion)
Subhanighat, Upashahar, P. S. Sylhet, Dist
: Sylhet
PABX: 0821) 723524, Direct : (0821)
811366, Cell : 01714-100499 (HOB)
Fax : (0821) 710094
Rajshahi Division
Bogra Branch
331/364, Rangpur Road, Borogola
Bogra-5800
PABX : (051) 78203, 67172,
Cell : 01711-439004
(HOB), 01730-034948 (OM),
Fax : (051) 61142
Baneswar Branch
Baneswar, Puthia, Rajshahi
Cell : 01755-534922
(HOB) 01755-605112(OM)
Chapai Nawabganj Branch
Holding No. 29 (1st floor) Islampur,
Daudpur Road Bara Indira Moor, Chapai
Nawabgonj.
PABX : (0781) 51125, Direct : (0781)
51126, Cell : 0173-0061491 (HOB),
01730-359662(OM),
Fax : (0781) 51127
Ishwardi Branch
Holding # 1335/982 Puraton Bazar,
Ishwardi Pabna
PABX : (07326) 64435,
Cell : 0173-033-8461 (HOB),
01755534921 (OM)
Fax : (07326) 64436
Joypurhat Branch
Tahera Complex, 306 Main Road,
Joypurhat
PABX: (0571) 51156, Direct: (0571) 51157
Cell: 01730-704142 (HOB)
Fax: (0571) 51158
Mohadevpur Branch
Charmatha Boker More, Bridge Road
Mohadebpur, Naogaon
PABX: (07426) 75041, Cell: 01755-545814
(HOB)
Fax: (07426) 75044
Naogaon Branch
Jagannath Bhaban (1st & 2nd Floor)
Holding # 320, Main Road, Bridge-erMore, Naogaon
PABX : (0741) 62150, Direct : (0741)
62151, Cell : 01713-068095 (HOB),
01730066338 (OM)
Fax : (0741) 62152
Natore Branch
1052, Kanaikhali, Dhaka-Rajshahi
Highway, Natore,
PABX : (0771) 67001,
Cell : 0173-033-8466 (HOB)
Fax : (0771) 67002
Pabna Branch
423/1 Sonapatty Road, Pabna
PABX : (0731) 66426, Direct : (0731)
66425, Cell : 01730 -359665 (HOB)
Fax : (0731) 66399
Rajshahi Branch
138/144, Shaheb Bazar Rajshahi-6100
PABX : (0721) 773981, Direct : (0721)
771874, Cell : 01713-082804 (HOB),
01711-824363 (OM),
Fax : (0721) 773980
Rangpur Division
Dinajpur Branch
Mazeda laza (1st floor) 518/473
Ganashtala (near Fire Bridge), Jail Road,
Dinajpur
PABX : (0531) 51289, Direct : (0531)
51291, Cell : 0173-00-61493 (HOB)
Fax : (0531) 51296
Rangpur Branch
Shah-Amanat Super Market (1st Floor)
268 Station Road, Jahaj Companier More,
Rangpur
PABX : (0521) 64119, Direct : (0521)
64120, Cell : 01714-069972
(HOB),01937-992600(OM),
Fax : (0521) 64118
Branch Network
Khulna Division
Daulatpur Branch
Akankha Tower, 454, Khan-A-Sabur Road
Daulatpur, Khulna
PABX : (041) 2850877, Direct : (041)
2850876, Cell : 01755-545812(HOB)
01755-545813 (OM),
Fax : (041) 2850875
Jessore Branch
47, Netaji Subhas Chandra Road
Jessore Town, Jessore-7400
PABX : (0421) 68815, Direct : (0421)
68814, Cell : 01714-074014 (HOB),
01714-036224 (OM),
Fax : (0421) 68816
Khulna Branch
7, Old Jessore Road, Khulna-9100
PABX : (041) 725100,811459 Direct : (041)
720071, Cell : 0173-0320020 (HOB),
01711-824361 (OM),
Fax : (041) 731195
Kushtia Branch
Bangabandhu Super Market 2,N S Road,
Kustia
PABX: (071) 72431,Direct: (071) 72432
Cell: 01730-727290 (HOB).
Fax: (071) 72430
Satkhira Branch
Islam Plaza, 0801/00, Abul Kashem Road,
Satkhira
PABX : (0471) 62450, Direct : (0471)
63007, Cell : 01755-582853(HOB)
Fax : (0471) 63001
Barisal Division
London Branch
16 Brick Lane London, E1 6RF
Tel (Off) : 02076500005, 07939227610
E-mail: pbl.ex.uk@primebank.com.bd
Birmingham Branch
PBL Exchange (UK) Limited,UK
493 Coventry Road,
Birmingham, B10 0JS
Tel (Off) : 01217735553, 07956675296
E-mail: pbl.ex.uk@primebank.com.bd
Glossary
AD
ALCO
ATM
BB
Bank
B/L
BAS
BIBM
CRR
CRG
CSR
CPI
CDBL
CBS
CRISL
DCFCL
DEPZ
DP
EPS
EPZ
FY
GDP
HOB
ICA
IT
IM
IAS
IPO
LC
MBID
MTMF
MANCOM
NII
NPL
NC
OBU
PCBs
PBL
PECL
PBIL
PBSL
POS
PV
RWA
RMG
ROA
ROE
R&D
ROD
SAFA
SME
SOP
SLR
Authorized Dealer
Asset Liability Committee
Automated Teller Machine
Bangladesh Bank (Central Bank of Bangladesh)
Prime Bank Limited
Bad/Loss
Bangladesh Accounting Standard
Bangladesh Institute of Bank Management
Cash Reserve Requirement
Credit Risk Grading
Corporate Social Responsibly
Consumer Price Index
Central Depository Bangladesh Limited
Core Banking Software
Credit Rating and Information Services Ltd.
Departmental Control Function Check List
Dhaka Export Processing Zone
Depository Participants
Earning Per Share
Export Processing Zone
Fiscal Year (July to June)
Gross Domestic Product
Head of Branch
BInstitute of Chartered Accountants of Bangladesh
Information Technology
FInternational Monetary Fund
International Accounting Standard
Initial Public Offering
Letter of Credit
Merchant Banking and Investment Division
Medium Term Macro Economic Framework
Management Committee
Net Interest Income
Non Performing Loan
BsNationalised Commercial Banks
Offshore Banking Unit
Private Commercial Banks
Prime Bank Limited
Prime Exchange Co. Pte. Ltd.
Prime Bank Investment Ltd.
Prime Bank Securities Ltd.
Point of Sale
Present Value
Risk Weighted Assets
Readymade Garments
Return on Assets (excluding contingent items)
Return on Equity
Research and Development
Rights Share Offer Document
South Asian Federation of Accountants
Small and Medium Enterprise
Standard Operating Procedure
Statutory Liquidity Requirement
Notes