(As on December 31, 2020)

Dear Shareholders,
Assalamu Alaikum WRWB,

All praises are due to the Almighty Allah SWT, it is with deep gratitude, honor and amazingly privileged that to my disposition to be able to present before you the operational demonstration and achievement of your beloved Global Islami Bank for the financial year ended on December 31, 2020 which emulates our attainment and prognoses for progression.

I engrave to you at a time when we are incrustation an unparalleled catastrophe and I sincerely hope that all of you and your families are safe and well. While the situation around us is dingy, it is our suppleness, responsible business conduct and credence in our impending that is facilitating us to navigate this volatile environment. In the course of this time the physical, financial and emotional safety and well- being of our people has been the dominant priority. We are doing all we can to warrant business continuity and our teams are working diligently to moderate the risks to business. The key in this surroundings is to remain pertinent to the customers we serve. For us, that fundamentally means two things: first, earning trust by operating a responsible, multi-stakeholder business model; second, harnessing technology, especially digital-in ways that allow us to extent and amusement consumers in new and ever more innovative ways. We are steadfastly dedicated on both.

Global Islami Bank is one of the most admired banking brands in the country at present. Persistently from the time when the Bank was established, our objective is to contribute to the countrywide economy and concurrently to capitalize on the shareholders’ wealth. GIBL is at all times trying to make a wide-ranging sort of financial services and products to accommodate to the progressing requirements of the market. We have additionally exasperated to be a compliant bank and it was persistent effort to follow all the best practices of the industry while doing business with the esteemed clients, vendors and stakeholders. The Bank immersed on intriguing new customers and retaining the fidelity of old clients over and done with enriched services at a very sustainable value. It is of gigantic predisposition that I have been able to present before you a transitory outline of some of the astounding attainments and unique executions in different fields accomplished by the Bank.

The worldwide economy slowed down in 2020, afterwards the resilient growth during 2018 and 2019.

The Global Outlook
World Output -3.3 6.0 4.4
Advanced Economies -4.7 5.1 3.6
Emerging market and Developing Economies -2.2 6.7 5.0

World Economic Outlook, IMF, April 2021

The utmost significant affair in 2020 was the shifting affiliation between China and the rest of the world. This emanated almost for the reason that of the action taken by the United States as well as activities taken by China, the US engagements of course was pursuing trade war and cross-border Investment in technology. This affected a slowdown in the worldwide economy and obligated China to swing economic policy. The Chinese accomplishment was the continuing exertion to enhancement its economic combination with world, outside US and to boost geopolitical footprint in the emergent world. This demanded further development of the Belt and Road Initiative (BRI). The Regional Comprehensive Economic Partnership (RCEP), and reductions in tariff on countries other than United States, the trade conflict has led to deliberation among Chinese leaders about the future course of policy.

Undeniably, the year 2020 was a mystifying year for Bangladesh economy and the year 2021 will absolutely offers its stake of new come across even with our commendable track record of over eight years of attired and sensible banking.

Bangladesh financial exercise have been developing effortlessly up to February 2020 as usual which was extremely interrupted from March 2020 due to Covid-19 epidemic in Bangladesh. The Government has pronounced a national general holiday from March 26 to May 30, 2020 for shielding spread out of Corona virus amongst the common people. Pecuniary events were extremely slow down throughout the period from March to December 2020 for adversative effect of Corona virus. The Bangladesh economy observed an inferior growth in all foremost segments. Bangladesh Bank had to issue/allow several bail-out packages in numerous methods to keep safe the economy and also to keep consecutively the economic maneuver of the country. The progression rate in FY 2020 was highest in South Asian region due to vigorous remarks from government and to provide constant strategic support. For the period of 2020, macro indicators were negative and GDP growth was 5.2% in FY 2020 as against 8.2% in 2019 and 7.9% in FY 2020. Inflationary gravities were ascending due to Covid-19 pandemic panic; as a consequence, inflation rate was augmented to 6% in June 2020 as against 5.5% in June 2019. Nevertheless, Taka to some extent weakens against USD during FY 2020. In interbank market exchange rate was Taka 84.8=USD 1 on 31 December 2020 as against Taka 84.9= USD 1 on December 2019. Foreign exchange reserves persisted to steady and current account deficit has been relaxing due to increase in foreign remittance regardless of radical decline in export income in the wake of Covid-19. The augmented ADR at 85.0% for conventional Bank and 90.0% for Islami Banks has operative from September of 2019. Foreign Exchange Reserve stood at USD 36.04 million in FY-2020 as against USD 32.72 billion in FY-2019, which is identical to 7.87 months import disbursements.

The Banking industry of the country has encountered bountiful come upon stereotypically domestic grownup during the fiscal year 2020. Extremely several banks hastening to wader scarcely any suitable customer’s consequent in remarkably unassertive rate of return and escalating Non-performing investment (NPI) have been the notable happenstances abutting the industry. Banking sector displays a speckled demonstration in terms of profitability, asset growth and asset quality in 2020. Nevertheless, in advancement of NPI ratio in state-owned banks introduced the majority of the industry’s NPI ratio, deteriorating of asset quality in a few PCBs and FCBs mostly performed to effort up the whole ratio during the quarter. The balance sheet size of the banking sector stressed at BDT 17,178.10 billion at the end of June, 2020, recorded an increase of 4.5% from the end of December 2019. Higher asset growth in the review period might be generally inferable to higher investment by banks in govt. securities and expanded advance development by large scale stimulus package including refinance scheme for COVID-19 affected financial segments. The CRAR of the banking sector slightly declined from 11.94 percent in Q1FY21 to 11.64 percent in Q2FY21, mostly attributed to State Owned Commercial Banks (SCB). The CRAR of SCBs declined from 8.25 percent in Q1FY21 to 4.34 percent in Q2FY2, reflected by a large fall. Meanwhile, the CRAR for Private Commercial Banks (PCB) edged up to 13.96 percent in Q2FY21 from 13.29 percent in Q1FY21. Likewise, the CRAR of Foreign Commercial Banks (FCB) also posted an improvement, increasing from 25.59 percent in Q1FY21 to 28.24 percent in Q2FY21.
The Bangladesh economy could not route as anticipated in 2020 signifying GDP growth decline compare to 2019. Businesses was wary in extension, private sector investment was negative and largely economic scenario was unfathomable. Nonetheless, our exertions were reinforcing to further progress the quality of assets of the Bank. To attain this, we are trying to pursuit the best client of the country. At the same time, determinations continued to expand the loan portfolio, maintain ADR at preferred level and look for expanded sectors with importance on non-funded business. Our long term exertion to reach to larger number of clients from end to end providing easy access to technology focused modern banking services to the commonalities continued as well during the year under evaluation.

At Global Islami Bank, we count on sustainable growth as a substitute of rapid expansion. During the year 2020, we captivated on retaining our asset quality moderately than the rapid growth of our portfolio. Our Deposits of banking operation stood at BDT 106,749.50 million having 10.37% growth from 2019 position. Investment and advances stood at BDT 92,909.17 million. Import of the Bank was BDT 1856.72 million, Export was BDT 911.98 million and inward remittance was BDT 912.94 million. In terms of pecuniary fulfilment, Bank consummate pleasantly well even in the tough time as outlined above.

The year 2020 was definitely a perplexing year for Bangladesh economy and 2021 will, for sure covenants its fragment of new comer transversely even through our excellent track record of over eight years of decent and sensible banking. By means of beholding accelerative, we are persistent to form a common affluence for our society to sustain to meet the needs of forthcoming generation. The global economy and banking industry has attained into a new phase, going over rapid transformation in terms of market diminuendos. Businesses are gradually more service-focused and at the same time, more perplexing. We have confidence in our combined exertions will make a revolution. Once again, we should recap that the bank is escalating and our consequences are also evident paralleled to the size of the bank. We are devoted to make our bank into an up-to-date and effervescent Islamic financial institution with appropriate corporate governance. We want to continue compliant, fair and transparent in our business pledges. Our Bank would concentrate on brush up its modest superiority by taming its business approaches and through execution of the capacities. As banking industry is forecasted to continue highly modest with low interest restrictions, fee-based income and non-funded incomes shall be an intended main concern in 2021. Though, these encounters, we antedate a rousing 2021 extending our customers a much better experience with the fortifications of Digital Banking to offer the “Banking with Faith”.

You are familiarized that we have made accustomed ourselves as an IT based bank and we are well-designed with world prominent core banking solution Temenos T24 (vR20). Despite the fact that we have competed the operational issues of the IT Infrastructure and have been able to defense ourselves against the rise in cyber-crimes, we are not relaxed about our undertakings. We are ceaselessly working round the clock for safeguard of our system and as well as investing extravagantly to procure latest hardware and software in this regard. The management can respite pledge all our promoters, shareholders and stakeholders that your bank is safe in all respect.

GiB has retained high on its methodology of antecedence to make best use of the implication of investments of all sort of eminent stakeholders and in the same justification to make means growth in the fragment of the economic growth of the country as a whole by sharing and amplification of the bank’s credit portfolio through the flip areas of the economy. We carry on to conversant with that more than 10.00 million Bangladeshis are residing abroad in different parts of the world and their supports in the national economy is significant and admirable. Nonentity can renounce their assistances and their hard earned remittances has become a driving force of Bangladesh economy. GiB is pledged to sort out a trivial different for the Non Resident Bangladeshi nationals, generally when they return home from the overseas. GiB is encompassing all kinds of association and deal all of its prevailing facilities to these societies from end to end diverse NRB products. Our NRB Support Desk in all our branches is ready absolutely outright to the NRBs to come across their desires.

In conclusion, I would like to extend my profound appreciation to the honorable Chairman and the Board of Directors for their visionary and esteemed leadership. I am immensely honored to lead such a fervent and talented team and wish to thank all the employees of the Bank for their insistent pledge and exertions in providing the results set forth in this Annual Report.

My acknowledgement also goes to all the regulators for their persistent support and mentorship, precisely, Bangladesh Bank, which has always been approaching in providing the Bank with admiration to approaches and support from time to time. I look ahead to writing a different accomplishment story in 2021.

The impending is sure to elevation new encounters and new prospects. I resolutely believe, if we tactic each new step onward with a craving for winning in the marketplace, a pledge to edifice new proficiencies and a mindset that accolades innovation, I am buoyant we will flourish.

I am ardent enough that after crafting the feature of “Great Experience” among all our customers and stakeholders, we are moving ahead keeping “Banking with Faith” as the ultimate goal.


Syed Habib Hasnat
Managing Director