(As on December 31, 2020)

Dear Fellow Stakeholders,
Assalamu Alaikum WRWB,

We have all been undergoing an exceptional and perplexing year due to the epidemic of Covid-19. Hence, at the very beginning, I encompass my noble wishes for health and well-being to you and your families. We are in masse living through a predicament that has taken-over our lives. It is inessential to say this crisis is unparalleled and there was no prototype for addressing it. Nevertheless, it is our resilient publics-centric attitude and persistent belief in our prospective to provide that facilitates us to traverse through the ambiguity ensuring stability of business and safety of all our individuals.

I would like to express my fervent gratitude and due respects to all of our well-wishers, my sincere appreciation to all partners for their unstinting supports and constant contribution to Global Islami Bank since commencement. Yet again, I would like to welcome you all to the 8th Annual General Meeting of Global Islami Bank. I am pleased to present the GiB Annual Report 2020 in this platform to shed light on the Bank’s overall performance, exchange views on economic environment and strategic priorities we followed in upcoming year. On behalf of our distinguished Directors and Sponsor Shareholders, I would like to be grateful to you for your amazing insistent supports solidified to me as well as Bank Management, which facilitated me a lot to manage the GiB laudably and properly with full forbearance.

The year is momentous to us as it is the birth centenary of Bangabandhu Sheikh Mujibur Rahman and the golden jubilee of Bangladesh’s independence. We express our ceaseless gratefulness for these two grand occasions and Global Islami Bank is a gratified companion of witnessing these two milestones of history. These two proceedings sign a cheerful forthcoming for the millions of this country.

Global Islami Bank pays homage to the father of the nation, Bangabandhu Sheikh Mujibur Rahman, on his birth centenary and promotes his invaluable contribution and selfless struggle for the masses against oppression and tyranny for the independence of Bangladesh. We also pay respect to the freedom fighters who fought relentlessly to free the country under the leadership of the fearless leader Bangabandhu Sheikh Mujibur Rahman. The golden jubilee of our independence is a watershed event in the history of our country and worldwide as well. We salute the bravery and heroism of Bangabandhu Sheikh Mujibur Rahman. In every way, Bangabandhu Sheikh Mujibur Rahman’s life and achievements continues to inspire us, our bank and our nation.

As covenanted to be the most unique name in GiB Banking as well as being responsible socially, we are sprawling with great suppleness and buoyancy keeping in mind the strength of long offered sensible growth of Bangladesh. Our forte lies in our people and in our brands. ‘Talent and Culture’ are amongst the GiB key tactical stakes that make GiB a future-ready organization. We have a vibrant range and insertion agenda and continue to invest heavily into new age capability to surpass in the age of digital and artificial aptitude. We have revolved out regulated capability frameworks, rendezvous edges and recognition platforms to facilitate our talent to unbridle their potential. We believe at Global Islami Bank, we have outstanding endowment capable of providing super-normal effects and prosperous in an accelerate business.

Our individuals were at the front and center of our attention in addressing the Covid-19 endemic. As the epidemic stretched out in Bangladesh, our particular importance was ensuring the health and safety of our associates. The attention and pledge our members have shown to each other, our business companions, extended work-force and close communities has been a stimulation. Each member of the GiB family has hauled together and retorted with suppleness and resilience, modifying to new ways of working and providing outstanding results without embracing on health & safety in any way.

Apparently, it is ever-changing in the banking backdrop; shifting customer attitudes, technology, with regulations, greater competition, demographics, and issues with banks’ own legacy business and operating reiterations. The Mission, Vision and happenstances are vibrant, even if, we have been grating our best to commence it within the necessary period.

Global Economic Stature:
Global progression is projected at 4.9 percent in 2020, 1.9 percentage points below the April 2020 World Economic Outlook (WEO) projection. The Covid-19 endemic has had a more negative effect on activity in the first half of 2020 than expected, and the recovery is anticipated to be more gradual than earlier prediction. In 2021, worldwide progress is anticipated at 6 percent. The adversative influence on low-income households is mostly acute, jeopardizing the important progress made in reducing extreme poverty in the world since the 1990s.

All nations including those that have apparently passed mounts in contagions should guarantee that their health care systems are sufficiently resourced. The worldwide community must immensely phase up its sustenance of countrywide resourcefulness, including through financial support to countries with restricted health care capacity and routing of finance for vaccine production as trials advance, so that suitable, affordable doses are hurriedly available to all countries. Monetary policy should continue to bolster domestic income losses with substantial, well-targeted measures as well as provide support to firms suffering the magnitudes of delegated restraints on activity where lockdowns are required. Somewhere economies are resurrecting, besieged support should be steadily wind down as the recovery gets in progress, and policies should afford stimulus to lift demand and comfort and incentivize the restructuring of possessions away from sectors likely to emerge insistently smaller after the epidemic.

Robust multidimensional cooperation remnants essential on multiple fronts. Liquidity assistance is immediately needed for countries provoking health crises and external finance shortfalls, including through debt relief and financing through the worldwide business safety net. Away from the epidemic, legislators must join forces to resolve trade and technology pressures that expose an ensuing recovery from the Covid-19 catastrophe. Moreover, erection on the record drop in greenhouse gas emissions during the endemic, policymakers should
both contrivance their climate change alleviation obligations and work together to scale up fairly designed carbon taxation or equivalent schemes. The worldwide civic must act now to avoid a replication of this calamity by building global supplies of important deliveries and shielding equipment, funding research and ancillary public health systems, and tapping in place real modalities for supplying assistance to the penurious.

Stature of Bangladesh’s Economy:
Bangladesh has made sluggish but sturdy evolution toward inordinate economic independence over the preceding era. However, the economy residues in the commonly unfree classification, the control of government spending and debt has been a positive attainment. Further enhancements in judicial success and government veracity would make stronger the rule of law, and inaugural the banking sector to foreign rivalry would promote help the nation.

Bangladesh’s GDP per capita income is appraised as per IMF data at US$5739 (PPP) and US$2064 (nominal), as of 2020. Bangladesh is a member of the D-8 Organization for Economic Cooperation, the South Asian Association for Regional Cooperation, the International Monetary Fund, the World Bank, the World Trade Organization and the Asian Infrastructure Investment Bank. The economy facades encounter of infrastructure tailbacks, rigid corruption, and youth redundancy.

During 2021 and 2041 the country is envisioned to undertake justifiable progress objectives by 2030 and in that way fetching superior mid earnings country. All those objectives are not inevitably the nightmare, on the other hand we have faith in that considerable potentiality and vision to extent to the supreme preferred level of growth route in the manner of valediction by reconnoitering all the obtainable prospects in the steam of resource constrictions. The present Government is precise considerable and dedicated to grasp the objectives both from short and long term standpoint into a veracity.

A massive public sector investment restricted from the intensification in GDP by 8.20% as a decent number of substructure linked mega projects are in the advancement of accomplishment. In the perceptible perceptiveness of the span private segment investment withstands huge connotation to pledge obstinate growth of the economy and establishment of employment scenarios. In the contemporary foregoing, private sector investments have faded which is typically the effect of liquidity crisis and shot up of NPIs. From this context, it is apparent that vigorous growth impetus of remittance during the period has replaced the opening in export paybacks. Inflow of remittance bounced nearby by 23.5% in the first four months of the present financial year. Remittance achieving attached at USD$21.9 billion at the year-end 2020 which is generally owing to the imprint of decline of taka and framework of 2% cash inducement on remittance retributions.

COVID-19 state of affairs
The banking sector is the vital player of the economic activities of any countries. As a developing country, we must to be more vigilant in terms of designing to get rid of the impression of Covid-19 outburst. We are already anguishing severely due to NPIs and inappropriately the epidemic may increase the level of NPIs in the days ahead. The NPIs can be split up in two phases: 1. Pre-Covid NPIs & post-Covid NPIs in view to glare & realize the fact more prudently. Hence, a new arrangements of Bangladesh Bank guidelines need to be commenced addressing the realities. It is crucial to emphasis on the early bail-out plans for apparent downfall of large loans is vital for sustainability as many backward linkage, SMEs and individuals are directly and indirectly associated with these Large Loan borrowers.

Nevertheless, in this precarious situation, Banks and other NBFIs must take due homework to quicken economic recovery in the post-covid-19 situation where the Board and top management have critical role to play. A watch group should be made for data evaluating and make ready the Bank & NBFIs for formulating a consistent situational analysis when needed. Approaches need to be asserted clearly so that all personnel safeguard preparing themselves as active as well as competent at this juncture for damage-control.

Covid-19 could yield an intricate and correlated set of effects like increased pressure on augmented deposit withdrawals and lessened availability of loanable funds to the private sector, enlarged default rates, descending pressure on market interest rates, asset quality and values, liquidity crunch due to decreased savings, in emerging countries like Bangladesh. The effects would lower returns from Banks’ prevailing loans, escalation the size of non-performing assets, and mutilation capital adequacy, which consecutively could prompt transmissible bank-run. Intrinsically, Banks are in the offing to perceive increases in a wide array of risks such as credit risk, liquidity risk, market risk, and interest rate risk. The endemic is threating the enactment, persistence, and progression of Banks.

As a result of the economic despair causing from Covid-19, the both credit risk and liquidity & Market risks is also upsetting the profitability, viable growth of our Bank. Remittance flow is already in despondent trend, buying power as well as income of individual has abridged which ultimately hit in the regular fund inflow of our Bank seriously. To cover up the financial crisis, depositors is withdrawing the deposits which also affects the fund inflow of the Bank.

Financial Performance of GiB:
However, fronting of daunting happenstances from perverted business and Covid-19 stratosphere, GiB has indifferent to deliver healthy financial demonstration. At the end of the year 2020, bank’s total deposit size stood at BDT 106,749.50 Million while, total loans and advances stood at BDT 92,909.17 Million. Conversely, GiB thrived to locate a modest network of 80 (Eighty) branches and 27 (Twenty Seven) Sub-Branches in the country map so far, regardless of the various troposphere. However, determined the capacity, GiB wishes to persuasive the mandatory measures for the welfare on constructing more effervescent in the identified arena.

In distinction, the Bank multiplicities attentive in light of the issues in the worldwide economy and will persist to be expedient to endure rational growth. Over the Bank’s strong repute of financial representation as well as vibrant asset quality and supported by a significant capital edifice, the Bank is thorough equipped to grasp forecasts escalating from the next level of evolution. By means of the banking atmospheres fragments to progression and change, the bank will remain to be obstinate and entranced order, a viable corporate that has the strength to provisions its customers through economic progressions and command new prognoses as soon as they discharge of the expression.

Key Strengths of GiB:
This one is our credence that our people are the key asset for thriving of business and prime stimulus of the GiB brand. The pledge to our employee is an obstinate and fragmented procedure and our goal is to generate a troposphere wherever the employees awarded, stay inspired, and sense recognized for their effort which accelerates them to secure and raise with the institution. GiB has 80 (Eighty) branches including 04 (four) AD Branches and 27 (Twenty Seven) Sub-Branches and 75 (Seventy Five) ATMs throughout the country to provide cohesive facilities to its customers. By the side of the Bank, we are enriching our Core Banking Solutions (CBS) Temenos T24 (R20) to safeguard contemporary integrated banking services. The Bank is solidifying up its position, together with the state-of-the-art technology and need-based products for its clienteles. Moreover, the Bank has been taking edges for escalating its prospect from end to end adaptation banking services to under-privileged natives with ‘GiB Agent banking’ and ‘GiB Go Fast’ which will augment the financial inclusion of the country. As a result of presence operationally splendid altogether, we ratify that we finance sustainably to expose imminent growth prospects, notwithstanding the fact dealing with budget base by revealing relationships and aptitudes.

Compliance Culture at GiB:
The Board of Directors accomplishments to make and sustain community buoyancy by ceaselessly perceiving to the utmost decent values. GiB is persistent to respectable corporate governance, which endorses resilient benefits of shareholders, secures Board and management responsibility, supports society, and public confidence in the Bank. Simultaneously, we are also dedicated to holding the utmost level of decent standards of consistency, corporate governance and regulatory compliance. We have proactive, validated good governance perceives and are obstinately determined to boost our values. At GiB, we have acknowledged an objective and amended to culture, aided by inclusive worthy exercise.

Going for the Futuristic Approach:
In 2021, we could feasibly frontage some coincidences which are to be appropriately addressed and necessary to initiate with considerately. Nitty-gritties like intensifying liquidity issue, classified loan, and upsurge in cost of deposit are among those come through. Furthermore, US-China trade encounter is also going to posture as menace, since this kind of catastrophic trade battle can embrace the worldwide trade balance and hitch the slump. Besides, the escalating peripheral transaction rates is going to stand risk to our entire economy. In contrast, we are not managing the consequences impending for us, persistent with the most recent demonstration of Worldwide Research, Bangladesh is projected to be the leading advocate in the global gross domestic product positions in 2030, and to undertake that target of the economy of Bangladesh is going led for consistent trail. We are also emphatic in pull together, the economic target of attainment to middle income country rank in 2021 by endorsing an annual 8.13% GDP advancement.

Owing to the mechanism of its explicit usual of perception, GiB rudiments the approaches to redefine its intense and cross the edge in the remarkable of shaping indicators for new methods of business services and advancement of NRB Banking. Composed with this pledge disposed, GiB has already measured and designed new products and services for expats residing abroad. The Bank deals with wide-ranging variety of depository, loan/investment and card products to offer almost for every customer section in Corporate Banking, with growing focus on SME and Retail businesses. GiB has just about all banking products in its service
extent from Student Banking to Corporate Banking to Visa Platinum card. The product basket is hilarious in contented highlighting different brands of Savings and Current Accounts, Personal Loans/finances, Debit Cards, Credit Cards, Corporate Banking, SME Banking, Investment Banking etc. GiB is confident to unveiling more elite hallucinations of financial services to bank the more unbanked peoples of the society, to welcome new resentments and sound healthy wellbeing in the banking business dome.

The Board of Directors has decided to recommend 5% Cash and 5% Stock dividend for the shareholders for the year 2020. We at all times deliver exciting implication to maintain an acceptable and equilibrium of dividend payment and setting up the capital base of the institution. We proceed with a steadfastness to distribute suitable amount of dividend arranged a closer assessment and compliance with several regulatory state of affairs, organization’s receiving aptitude and growth prognoses.

Promoting Entrepreneurship
GiB has been progressively ever-changing its perceptiveness to CMSME lending since its inception. We are giving distinct importance on manufacturing industries, cluster financing, promoting rural people as well as rural women entrepreneurship and service-oriented business initiatives. GiB also focuses on Agriculture Investment for the superior importance of the economy and disbursed a substantial amount in 2020.

In a nutshell, I would like to outspread my sincere gratitude to our esteemed shareholders, regulators, industry peers, CSR partners and the enormous clienteles for their persistent reliance in GiB. Revolution has been our ideology, we are efficacious because of our people and entrepreneurial culture, and we thump up above
our weight releasing impending and delivering long-term worth. Despite the fact, the imminent holds many new challenges, with your sustenance, I am buoyant of delivering strong financial enactment as we grow from forte to strong suit.

I am also endlessly indebted to our very empathetic Board of Directors for their very decent and obstinate provisions and my sincere appreciation to my fellow management colleagues under the leadership of Mr. Syed Habib Hasnat, Managing Director for their learned and splendid supports with insistent pledge and endeavors for GiB’s thriving story. The respite steady responsibilities and the robust self-confidence to go forward together. I trust the punctuality, pledge and services of GiB will be obstinate under the solid guidance of the Board of Directors which will expedite the better services for all and deserve a sustainable profit and growth of the bank which will superfluous the country’s economic progress on top. Let’s make our moto for all – “Banking with Faith”.


Nizam Chowdhury
Chairman, Board of Directors