(As on December 31, 2019)

Dear Shareholders,

Assalamualikum,

I am astoundingly fortunate and it is also my temperament to be able to present before you the operational demonstration and accomplishment of your beloved NRB Global Bank Limited for the financial year ended on December 31, 2019 which imitates our success and projections for advancement.

NRB Global Bank Limited is one of the most esteemed banking marques in the country at present. Constantly from the time when the Bank was established, our objective is to contribute to the nationwide economy and simultaneously to capitalize on the shareholders’ wealth. NGBL is at all times trying to make a wide range of financial services and products to accommodate to the evolving requirements of the market. We have furthermore exasperated to be a compliant bank and it was constant effort to follow all the best practices of the industry while doing business with the respected clienteles, vendors and stakeholders. The Bank engrossed on fascinating new customers and retentive the trustworthiness of old clients over and done with enhanced services at a very viable value. It is of enormous inclination that I have been able to present before you a momentary outline of some of the amazing achievements and unique attainments in different fields accomplished by the Bank.

The worldwide economy slowed down in 2019, afterwards the resilient growth during 2017 and 2018. Rendering to World Economic Outlook by IMF, the acceleration of trade pressure amongst the United States and China, loss of impetus in Europe and the noticeable consequence of BREXIT have elevated the risks of global growth, which was projected at 2.9% in 2019, ominously dejected from the growth in 2018 and forecast for 2019. International Monetary Fund’s impost of the effect of Covid-19 advises that such slowing down in growth is anticipated to continue, rotating to negative 4.9% in 2020 trailed by a progressive growth rate of 5.4% in 2021.

The Global Outlook

   2018 (Estimates) 2019 (Estimates) 2020 (Projections) 2021 (Projections)
World Output 3.6 2.9 -4.9 5.4
Advanced Economies 2.2 1.7 -8.0 4.8
Emerging market and Developing Economies 4.5 3.7 -3.0 5.9

          World Economic Outlook, IMF, June 2020

Indisputably, the year 2019 was a perplexing year for Bangladesh economy and the year 2020 will undoubtedly propositions its stake of new encounters even with our admirable track record of over seven years of decent and sensible banking.

Despite the fact, progression impetus sustained in the national economy with 8.15% real GDP growth for FY19, ominously sophisticated than the growth of 7.86% in the foregoing financial year. The robust FY19 factual GDP progress was broad based transversely economic sectors, reinforced by sturdy both domestic and external demand revealed in 10.5% export growth. Typical inflation was to some extent uptrend, recorded at 5.59% in December, 2019 from 5.54% in December, 2018. Nevertheless, Foreign Exchange Reserve has recorded a stable level, USD 32.69 billion in December, 2019 compared to USD 32.01 billion in December, 2018. Public and private sector investment and depletion along with strident upsurge in the flow of wage earners remittance underlined the economic presentation of the country in 2019.

The Banking industry of the country has faced plentiful encounters typically household grownup during the fiscal year 2019. Excessively several banks rushing to boot barely any suitable customers ensuing in exceedingly modest rate of return and mounting Non-performing loan (NPL) have been the foremost encounters fronting the industry. Banking sector indicators replicated a varied presentation in terms of profitability, asset growth and asset quality in 2019. Nonetheless, in elevation of NPL ratio in state-owned banks instituted the majority of the industry’s NPL ratio, worsening of asset quality in a few PCBs and FCBs mostly performed to drive up the whole ratio during the quarter. The balance sheet size of the banking sector stretched at BDT 15,744.4 billion at the end of September, 2019, logged an increase of 11.88% from the end of September 2018. Notwithstanding retaining a huge size of credit loss provisions against the rising NPLs, its adversative influences on banks’ profitability and capital adequacy persist as an apprehension from financial firmness perspective. The CRAR of the banking sector as a whole mounted at 11.62%, which is correspondingly 12 basis points lower and 73 basis points higher than the ratio chronicled at the end of June, 2019 and end of September, 2018.

The banking industry, overall was capable to sustain the necessary level of Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) as on 30 September 2019. Advance to Deposit Ratio (ADR) of the whole banking sector was 76.6% as on 30 September 2019, which was 75.7% as on 30 June 2019 and 0.2% point advanced than that of end of September 2018, enduring lower than the maximum regulatory ceiling. Return on Asset (ROA) in the banking industry mounted at -0.1 percent, which was 0.2% at the end of the forgoing quarter. Moreover, return on equity (ROE) mounted at -1.9%, which was 3.6% in the foregoing quarter.

At NRB Global Bank Limited, we rely on viable growth as an alternative of rapid advancement. During the year 2019, we engrossed on retaining our asset quality relatively than the rapid growth of our portfolio. Our Deposits of banking operation stood at BDT 96,716.34 million having 16.69% growth from 2018 position. Import of the Bank was BDT 2736.38 million. Export was BDT 2073.28 million and inward remittance was BDT 957 million having 59.76% growth. In terms of monetary attainment, Bank accomplished pretty well even in the tough time as point out above.

The year 2019 was undeniably a puzzling year for Bangladesh economy and 2020 will, for sure deals its segment of new encounters even through our admirable track record of over seven years of ethical and sensible banking. We dearth to materialize as one of the furthermost reliable partners of evolvement to trade and business of the country. By way of looking forward, we are steadfast to form a mutual opulence for our society to endure to meet the needs of impending generation. The worldwide economy and banking industry has arrived into a new age, going through hasty change in terms of market diminuendos. Clienteles are progressively more service-focused and simultaneously, more challenging. We have confidence in our collective effort will make a transformation. Afresh, we should reiterate that the bank is rising and our outcomes are also noticeable compared to the size of the bank. We are devoted to make our bank into a contemporary and vibrant Islamic financial institution with appropriate corporate governance. We dearth to persist compliant, fair and transparent in our business covenants. Our Bank would distillate on brush up its modest superiority by refining its business approaches and through execution of the aptitudes. As banking industry is prophesied to continue highly competitive with low interest restrictions, fee-based income and non-funded incomes shall be a premeditated main concern in 2020. However, these challenges, we predate an inspiring 2020 giving our customers a much better experience with the ramparts of Digital Banking to provide the ‘Great Experience’. You are accustomed that we have made acquainted ourselves as an IT based bank and we are functional with world prominent core banking solution Temenos T24. While we have contended the operational issues of the IT Infrastructure and have been able to safeguard ourselves against the upsurge in cyber-crimes, we are not contented about our endeavors. We are relentlessly working round the clock for protection of our system and as well as investing lavishly to procure latest hardware and software in this concern. The management can letup pledge all our promoters, shareholders and stakeholders that your bank is safe in all respect.

NGBL has kept high on its approach of antecedence to make best use of the connotation of investments of all sort of distinguished stakeholders and in the same explanation to make worth accretion in the segment of the economic growth of the country as a whole by distribution and intensification of the bank’s credit portfolio through the tumble areas of the economy. We continue to acquainted with that more than 10.00 million Bangladeshis are hang around abroad in different parts of the world and their assistances in the national economy is remarkable, laudable and multidimensional. Nobody can repudiate their contributions and their hard earned remittances has become a driving force of Bangladesh economy. NGBL is promised to do a little different for the Non Resident Bangladeshi nationals, mostly when they return home from the overseas. NGBL is extending all kinds of alliance and deal all of its dominant facilities to these societies from end to end different NRB products. Our NRB Support Desk in all our branches is made completely out-and-out to the NRBs to meet their requirements.

In conclusion, I would like to extend my deep gratefulness to the honorable Chairman and the Board of Directors for their hallucination and cherished guidance. I am enormously proud to lead such an enthusiastic and proficient team and wish to thank all the employees of the Bank for their persistent pledge and efforts in delivering the results set out in this Annual Report.

My thankfulness also goes to all the regulators for their incessant support and mentorship, specifically, Bangladesh Bank, which has always been impending in providing the Bank with respect to strategies and assistance from time to time. I look forward to writing another attainment story in 2020.

I am emphatic enough that we constantly shall be able to institute your bank at a standard of ‘Great Experience’.

Sd/-
Syed Habib Hasnat
Managing Director