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AB Bank Limited
Notes to the Financial Statements For the year ended 31 December 2009
1.1 The Bank and its Activities
AB Bank Limited is one of the first generation private commercial banks (PCBs), incorporated in Bangladesh on 31 December 1981 as a public limited company under the Companies Act 1913, subsequently replaced by the Companies Act 1994, and governed by the Banking Companies Act 1991. The Bank went for public issue of its shares on 28 December 1983 and its shares are listed with Dhaka Stock Exchange and Chittagong Stock Exchange respectively. AB Bank Limited has 78 Branches including 1 Islami Banking Branch, 1 Overseas Branch in Mumbai, India. The Bank has a subsidiary company, AB International Finance Limited, incorporated in Hong Kong. The Bank through its Branches and non-banking subsidiary provides a diverse range of financial services and products in Bangladesh and in certain international markets. The Bank has expanded its capital market oriented service horizon to its customers through Merchant Banking Wing. The Bank obtained permission to embark upon Merchant Banking from the Securities and Exchange Commission (SEC) vide its certificate no. MB-1.02/2001-30 dated 15 May 2001 under the Securities and Exchange Commission Act, 1993. Subsequently, Bank has formed a subsidiary company named AB Investment Company Limited in accordance with approval of Bangladesh Bank vide its Letter # BRPD(R-1)717/2009-538 dated 09 December 2009 and Securities and Exchange Commission vide its Letter # Sec/Reg/MB-79/2010/73 dated 10 March 2010 for dealing the Merchant Banking business.
AB Bank Limited started its Islami Banking operation through its Dilkusha Islami Banking
Branch, Dhaka on 21 December 2004 following the permission of Bangladesh Bank vide letter no. BRPD (P) 745 (12)/2004-2702 dated 08 July 2004. Subsequently the Branch has been shifted to Kakrail, Dhaka.
The Bank obtained permission as a Security Custodian from the Securities and Exchange Commission vide its certificate no. SC-05/2007 dated 22 January 2007 under the Securities and Exchange Commission (Security Custodian Service) Rules, 2003.
In the year 2009, the Bank obtained permission to operate Off Shore Banking Unit (OBU) vide
letter # BRPD(P-3)744/(106)/2009-4486 dated 06 December 2009 of Bangladesh Bank. OBU operation will be carried out from the EPZ Branch Chittagong.
The Bank has a dedicated philanthropic unit named Arab Bangladesh Bank Foundation (ABBF)
which is operating since 2002. Foundation has obtained Brokerage Licenses from SEC on 15 August 2006 and 23 October 2006 for Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) respectively and started its operation from 28 August 2006 and 05 December 2006 on DSE and CSE respectively. However, in view of the recent decision of the Bangladesh Bank and upon due agreement to that effect subsequently by the Board of Directors of ABBL and ABBF respectively, launching of a new subsidiary company for the operation of Brokerage business is under process. Bangladesh Bank has given approval for the mentioned new subsidiary.
1.2 Significant Accounting Policies and basis of preparation of the Financial Statements
A. Presentation of the financial statements Consolidated Financial Statements and Financial Statements of the Bank comprise of the Balance Sheet, Profit and Loss Account, Cash Flow Statements, Statement of Changes in Equity, Liquidity Statement and relevant notes and disclosures. Beginning this year, Financial Statements has been prepared on consolidated basis. Consolidated Financial Statements will encumber the Bank and other subsidiary accounts. Consolidated Financial Statements and Financial Statements of the Bank are made as at 31 December 2009 and are prepared under the historical cost convention except investments categorized under Held for Trading and in accordance with the First Schedule (Section- 38) of the Bank Companies Act 1991, BRPD circular # 14 dated 25 June 2003, other Bangladesh Bank circulars, the Companies Act 1994, the Securities and Exchange Ordinance 1969, Securities and Exchange Rules 1987 and other laws and rules applicable to a banking company. Consolidated Financial Statements and Financial Statements of the Bank have been prepared in accordance with the measurement and recognition requirements of the Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB). B. Basis of consolidation Separate set of records for consolidating the Financial Statements of the Branches including Mumbai Branch, India and AB International Finance Limited, Hong Kong are maintained at the Head Office, based on which these financial statements have been prepared. The Consolidated Financial Statements have been prepared in accordance with the BAS 27: Consolidated and Separate Financial Statements. The Consolidated Financial Statements have been prepared to a common reporting period ending on 31 December 2009. Mumbai Branch, India The assets and liabilities of Mumbai Branch, India have been incorporated in the accounts at year end exchange rate. Income and expenditures are incorporated in the accounts by each line item. Retained earnings of Mumbai Branch has been added with total retained earnings of Bank. In corresponding balance of 2008, Income and expenditures at the Mumbai Branch were not incorporated in the accounts; instead, net profit earned was shown as retained revenue under other liabilities. Such earnings were recognized as income of the Bank as and when remittance of profit was received from the Branch and then grouped under the head "other income". The Balance Sheet and Profit and Loss Account of the Mumbai Branch has been shown separately in Annexure - F. Merchant Banking Wing Financial statements of Merchant Banking Wing (MBW) have been audited by an independent auditor M/S. S. F. Ahmed & Co., Chartered Accountants. Assets-liabilities and income-expenditures of MBW are incorporated in similar heads of account of the Bank's financial statements. Balance Sheet and Profit and Loss Account of Merchant Banking Wing are shown separately in the Annexure - G. Subsequently, MBW has been converted into a subsidiary company named by AB Investment Limited (ABIL) which started its operation from March 10, 2010.
Islami Banking Branch Islami Banking Branch has maintained separate set of books and records for its operations. All assets-liabilities and income-expenses of this Branch are incorporated in similar heads of account of the Bank's financial statements. Detail Financial Statements of Islami Banking Branch is shown separately in Annexure-H as per Bangladesh Bank BRPD Circular No. 15 dated 09 November 2009. Distribution of Profit under Islamic Banking Operation and Fixation of final rate for the year 2009 are shown in Annexure-I. Custodian Wing Financial statements of Custodian Wing have been audited by independent auditor named M/S. ACNABIN, Chartered Accountants. Income-expenditures of that Wing are incorporated in similar heads of account of the Bank's Profit and Loss Account. Profit and Loss Accounts of Custodian Wing is shown separately in Annexure J. Arab Bangladesh Bank Foundation Arab Bangladesh Bank Foundation (ABBF) has maintained separate set of books and records for its operation. Financial statements of ABBF have been audited by an independent auditor M/S. Syful Shamsul Alam & Co., Chartered Accountants. Financial Statements of ABBF are not incorporated with the AB Bank Limited Consolidated Financial Statements and Separate Financial Statements due to undergoing legal settlement process. Bangladesh Bank vide its circular letter BRPD(R-1)651/(Special)-1/2007-767 and BRPD (R-1/651/2008-444 dated 05 December 2007 and 13 July 2008 respectively issued show cause notice to AB Bank Limited and forfeited a total of 248,594 shares of IFIC Bank Limited valuating Tk.21,176,920 held by ABBF. Pursuant to the above, AB Bank Limited filed a writ petition before the Honorable High Court Division of the Supreme Court on 31 August 2008 and the court extended the stay order till disposal of the rule. Subsequently, Bangladesh Bank vide letter # BRPD (R-2)/651/9(Bishes-1)/2009-450, dated 14 October 2009 directed AB Bank Limited to separate its stock broking activities from ABBF through the formation of a new subsidiary company and also agreed to return the confiscated shares of IFIC Bank Limited to the new company subject to fulfillment of certain specific conditions. Accordingly, in line with Bangladesh Bank’s directive, AB Securities Limited (ABSL), a subsidiary company of AB Bank Limited, has been formed on 24 December 2009 to deal with stock broking services of the Bank. The writ petition filed earlier was withdrawn by the Bank vide the order passed by the High Court Division of the Supreme Court of Bangladesh on 08 December 2009. Formal Commercial operation of ABSL will resume shortly and returning of the shares of IFIC Bank Limited is presently under process with Bangladesh Bank. The Balance Sheet and Profit and Loss Account of the ABBF has been shown separately in Annexure - K. Subsidiary AB International Finance Limited AB International Finance Limited (ABIFL) is a company incorporated and domiciled in Hong Kong and has its registered office and principal place of business at Unit 1201-B, 12/F, Admiralty Centre, Tower One, 18 Harcourt, Hong Kong.
As mentioned earlier, Financial Statements of ABIFL has been consolidated following the BAS 27: Consolidated and Separate Financial Statements. The Balance Sheet and Profit and Loss Account of the ABIFL has been shown separately in Annexure - L. Control exists when Bank has the power, directly or indirectly, to govern the financial and operating policies of an entity so as to obtain benefits form its activities. 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 ceases. Conversion rate policy of ABIFL is given below: For assets & Liabilities at closing rate of Tk.8.9321 per HK$ For income & expenses at average rate of Tk.8.8976 per HK$ All intra-group balances, transaction, income and expenses are eliminated in full for preparing consolidated Financial Statements. Associate Cashlink Bangladesh Limited Cashlink Bangladesh Limited (CBL) was incorporated on 24 September 2008 in Bangladesh under the Companies Act 1994 as a private company limited by shares with an authorized capital of Tk. 1,000,000,000 divided into 100,000,000 ordinary shares of Tk. 10 each. AB Bank holds 30% share in CBL. An associate is an entity of the Bank, over which the Bank has significant influence and that is neither the subsidiary nor an interest in a joint venture of the Bank. C. Use of estimates and judgments The preparation of Consolidated Financial Statements and Financial Statements of the Bank requires management to make judgments, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions of accounting estimates are recognized in the period in which the estimate is revised and in the future periods affected if applicable. D. Materiality, aggregation and offsetting Bank presents each material class of similar items. Bank presents separately items of a dissimilar nature or function unless they are immaterial. Bank did not offset assets and liabilities or income and expense, unless required or permitted by BAS/ BFRS. E. Foreign currency transactions i. Functional and presentational currency Financial Statements of the Bank are presented in Taka, which is the Bank’s functional and presentational currency.
ii. Foreign currency translation Foreign currency transactions are converted into equivalent Taka currency at the ruling exchange rates on the respective date of such transactions as per BAS- 21 “The Effects of Changes in Foreign Exchange Rates”. Assets and liabilities in foreign currencies as at 31 December 2009 have been converted into Taka currency at the average of the prevailing buying and selling rates of the relevant foreign currencies at that date except "Balances with other Banks and Financial Institutions" which have been converted as per directives of Bangladesh Bank vide its circular no. BRPD (R) 717/2004-959 dated 21 November 2004. Differences arising through buying and selling transactions of foreign currencies on different dates of the year have been adjusted by debiting /crediting exchange gain or loss account. iii. Commitment Commitments for outstanding forward foreign exchange contracts disclosed in these Consolidated Financial Statements and Financial Statements are translated at contracted rates. Contingent liabilities / commitments for letter of credit, letter of guarantee and acceptance denominated in foreign currencies are expressed in Taka terms at the rates of exchange ruling on the balance sheet date. iv. Translation gain and Losses Gain and Loss arising on translation of foreign exchange are included in the profit and loss account, except those arising on the translation of net investment in foreign subsidiary. v. Foreign operations The results of Consolidated Financial Statements of Bank & its subsidiary’s operations whose functional currency is not Bangladesh Taka are translated into Bangladesh Taka as follows: a. assets and liabilities of Balance Sheet are translated at the closing rate at the date of
Balance sheet. b. income and expenses of Profit and Loss Account are translated at an average rate
approximating the exchange rates at the year end. c. all resulting exchange differences are recognized as a separate components of equity. F. Cash Flow Statement
Cash Flow Statement is prepared principally in accordance with BAS- 7 “Cash Flow Statement” under direct method as per the guidelines of BRPD Circular No.14 dated 25 June 2003. The Cash Flow Statement shows the structure of and changes in cash and cash equivalents during the financial year. It reported cash flows during the period classified by operating activities, investing activities and financing activities. G. Statement of Changes in Equity
Statement of Changes in Equity is prepared principally in accordance with BAS- 1 “Presentation of Financial Statements” and under the guidelines of Bangladesh Bank BRPD Circular No.14 dated 25 June 2003.
H. Liquidity statements The basis of the Liquidity Statement of assets and liabilities as on the reporting date is given below:
Particulars Basis used
Balance with other banks and financial institutions
Maturity term
Investments Respective maturity terms
Loans and advances Repayment schedule basis
Fixed assets Useful life
Other assets Realization/ amortization basis
Borrowing from other banks, financial institutions and agents
Maturity/ repayments terms
Deposits and others accounts Maturity term
Other liabilities Payments/ adjustments schedule basis
1.3 Assets and basis of their valuation
A. Cash and cash equivalents Cash comprise cash on hand and demand deposits. Cash equivalents are short term, highly liquid investments that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value. B. Loans and advances i. Loans and advances/ investments in Islamic Banking Branch are stated at gross
amounts at 31 December 2009. ii. Interest/ profit is calculated on a daily product basis but changed and accounted for an
accrual basis. Interest/ profit on SMA and classified loans and advances/ investment is kept in suspense account as per Bangladesh Bank instructions and such interest/ profit is not accounted for as income until realized from borrowers. Interest/ profit are not charged on bad and loss loans/ investments as per guideline of Bangladesh Bank.
iii. Commission and discounts on bills purchased and discounted are recognized at the time
of realization.
iv. Provision for loans and advances is made on the basis of quarter-end review by the management and of instructions contained in Bangladesh Bank BCD circular no. 34 of 16 November 1989, 20 of 27 December 1994, 12 of 4 September 1995, BRPD circular no. 16 dated 6 December 1998, 9 of 14 May 2001, 02 of 15 February 2005, 9 of August 2005 and 17 of 6 December 2005, BRPD circular no. 05 dated 05 June 2006 and 05 of April 2008. The rates for provisions are stated below:
Types of Loan and Advances
UC SMA SS DF BL
Prov (%)
Prov (%)
Prov (%)
Prov (%)
Prov (%)
Consumer:
House building & Professional
2% 5% 20% 50% 100%
C. Investment Investments are initially recognized at cost, including acquisition charges associated with the investment. Premiums are amortized and discount accredited, using the effective or historical yield method. Accounting treatment of government treasury securities and bonds (categorized as HFT or/and HTM) is made following Bangladesh Bank DOS Circular Letter No. 05, dated 26 May 2008. The valuation methods of investment used are: i) Govt. Securities a. Held to maturity Investments which are intended to be held to maturity are classified as “Held to Maturity”. These are measured at amortized cost at each year end by taking into account any discount or premium in acquisition. Amortized amount of such premium or discount is booked to reserve until maturity/disposal.
b. Held for trading Investment primarily held for selling or trading is classified in this category. After initial recognition, investments are marked to market weekly. Decrease in the present value is recognized in the profit and loss account and any increase is booked to Revaluation Reserve Account through Profit and Loss Account. Value of investments has been enumerated as follows:
Investment class Initial recognition
Measurement after initial recognition
Recording of changes
Treasury Bill / Bond (HFT)
Cost Market Value Loss to P&L, gain to Revaluation Reserve through P & L
Treasury Bill / Bond (HTM)
Cost Amortized Value Increase in value to equity and decrease in value to P&L
Debenture Face Value None None
Prize Bond Cost None None
Shares Cost Lower of cost or market value
- any loss, charged in P/L - unrealized gain, not record in accounts
Other than House building &
Professional 5% 5% 20% 50% 100%
Small & Medium 2% 5% 20% 50% 100%
All Other 1% 5% 20% 50% 100%
ii) Investment in listed securities These securities are brought and held primarily for the purpose of selling them in future or held for dividend income. These are reported at cost. Unrealized gains are not recognized in the profit and loss account as per BAS 18: Revenue. iii) Investment in unlisted securities Investment in unlisted securities is reported at cost under cost method. iv) Investments in subsidiary Investment in subsidiary is accounted for under the cost method of accounting in the Bank’s financial statements in accordance with the BAS 27: Consolidated and Separate Financial Statements and BFRS 3: Business Combination. D. Property, plant and equipment i. All fixed assets are stated at cost less accumulated depreciation as per BAS -16
"Property, Plant and Equipment". The cost is the amount of cash or cash equivalents paid or the fair value of the other consideration given to acquire an asset at the time of its acquisition or construction or , where applicable, the amount attributed to that asset when initially recognized in accordance with the specific requirements of the BFRS.
ii. The cost of an item of property, plant and equipment shall be recognized as an asset if, and only if: a) it is probable that future economic benefits associated with the item will flow to the
entity; and b) the cost of the item can be measured reliably.
iii. Depreciation on fixed assets is charged using reducing balance method except motor vehicles, computers and photocopiers for which straight-line method is used. The rates of depreciation are as follows:
Name of the Assets Rate of Depreciation Land Nil Building 2.50% Furniture & Fixtures 10.00% Electrical appliances 20.00% Motor vehicles 20.00% Leasehold assets - vehicles 20.00%
iv. Depreciation for assets added during the year is charged from the month of addition. Whole month depreciation is charged for the month of addition.
v. On the month of disposal of fixed assets no depreciation is charged. The cost and
accumulated of depreciation of disposed assets are eliminated from the fixed assets schedule and gain or loss on such disposal is reflected in the profit and loss accounts.
vi. Useful life and method of depreciation of fixed assets are reviewed periodically. If
useful lives of assets do not differ significantly as it was previously estimated, bank management does not consider to revalue its assets by the meantime.
vii. Bank capitalized items value of which is over Tk.50,000 and the items below Tk.50,000
were booked in Non-capitalized items under the broader head of other expenses with effect from 01 March 2009 in accordance with the relevant policy.
viii. Bank also follows a policy of amortization of expenditures considering the durability and useful life of items. These are treated as Deferred Revenue expenditure and are booked under the head “Other Assets – Deferred Revenue Expenditures” and amortized amount is charged within the period and booked under the Broad head “Other Expenditure”.
E. Intangible Assets
An intangible asset is recognized if, and only if:
a. it is probable that the expected future economic benefits that are attributable to the assets will flow to the entity; and
b. the cost of the assets can be measured reliably. F. Other assets
Other assets include all balance sheet items not covered specifically in other areas of the supervisory activity.
G. Leasing Where property, plant and equipment have been financed by lease agreements under which substantially all the risks and rewards of ownership are transferred to the Bank, they are treated as finance leases as per BAS- 17 "Leases". All other leases are classified as operating leases as per BAS - 17 "Leases" i) As lessee Assets held under finance lease are recognized 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. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation. Assets held under finance lease are depreciated over their expected useful life on the same basis as owned assets.
ii) As lessor The bank did not grant any lease finance.
H. Stock of stationery Stock of stationery has been shown under other assets and is valued at cost.
1.4 Capital, Reserve, Liabilities & provision and basis of their valuation A. Share Capital Ordinary shares are classified as equity when there is no contractual obligation to transfer cash or other financial assets. B. Statutory reserve Bank Companies Act, 1991 requires the bank to transfer from its current year's profit before tax to reserve until such reserve together with share premium account equals to its paid up capital. AB Bank transferred 20% of its current year’s Profit Before Tax (PBT) to this reserve.
C. Revaluation reserve When an asset’s carrying amount is increased as a result of 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. D. Deposits and Other accounts Deposits are recognized when the Bank enters into contractual provisions of the arrangements with the counterparties, which is generally on trade date and initially measured at the consideration received. E. Borrowing Borrowed funds include call borrowing, term borrowings and re-finance from different commercial banks and central bank. F. Provision for taxation Income tax represents the sum of the current tax and deferred tax. i) Current Tax The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the balance sheet date. Provision for current income tax has been made @ 42.5% as prescribed in the Finance Ordinance 2009 of the accounting profit made by the Bank after considering some of the add backs of income and disallowances of expenditure as per Income Tax Ordinance, 1984. ii) Deferred Tax Deferred tax is recognised 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 recognised for all taxable temporary differences and deferred tax assets are recognised 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 utilised. Such assets and liabilities are not recognised 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 liabilities are recognised for taxable temporary differences arising on investments in subsidiaries and associates, and interests in joint ventures, except where the company is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised, based on tax rates that have been enacted or substantively enacted by the balance sheet date. Deferred tax is charged or credited to the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. 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. 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". (Note-13.3) G. Retirement benefits to the employees
The retirement benefits accrued for the employees of the bank as on the reporting date have been accounted for in accordance with the provision of BAS-19 "Employee benefit". Bases of enumerating the retirement benefits schemes operated by the bank are outlined below:
i) Provident fund
There is a provident fund scheme under the defined contribution plan. The fund is operated by a separate board of trustees approved by the National Board of Revenue as per Income Tax Ordinance, 1984. All eligible employees contribute 10% of their basic pay to the fund. The bank also contributes equal of employees contribution to the fund. These contributions are invested separately. Benefits from the fund are given to eligible employees at the time of retirement / resignation as per approved rules of the fund. ii) Staff gratuity The bank has a separate Board of Trustees for operating the staff gratuity fund approved by the National Board of Revenue. Employees of the Bank, who served the Bank for ten years or above are entitled to get gratuity benefit at rates determined by the Service Rules of the Bank. iii) Superannuation fund The Bank operates a Superannuation Fund as death-cum-retirement benefit for its employees. The fund is operated by a separate Board of Trustees. H. Provision for liabilities A provision is recognized in the balance sheet when the bank has a legal or constructive obligation as a result of past event and it is probable that an outflow of economic benefit will be required to settle the obligations, in accordance with BAS- 37 “Provision, Contingent Liabilities and Contingent Assets”. No provision is recognized for any possible obligation that arises from past events and the existence of which will be confirmed only by the occurrence or non- occurrence of one or more uncertain future events not wholly within the control of the bank, or any present obligation that arises from past events and it is not probable that an outflow of resources embodying economic benefits will be required to settle the obligation, or a reliable estimates of the amount of obligation can not made.
However, certain provisions on assets and liabilities are maintained in accordance with relevant Bangladesh Bank Circulars issued from time to time.
I. Provision for Nostro Accounts
Provision for nostro accounts is maintained as per Circular Letter No. FEPD(FEMO)/01/2005-677 dated 13 September 2005 issued by Foreign Exchange Policy Department of Bangladesh Bank.
1.5 Revenue recognition
A. Interest income
According to the BAS -18 "Revenue", the interest income is recognized on accrual basis. Interest on loans and advances ceases to be taken into income when such advances are classified or treated as SMA as per BRPD Circular No. 05 dated 05 June 2006 and is kept in interest suspense account. Interest on classified advances is accounted for as and when realised. B. Profit on investment (Islamic Banking Branch) Profit on investment is taken into income account from profit receivable account. Overdue charges/ compensation on classified investment is transferred to profit suspense/ compensation receivable account instead of income account. C. Investment income Interest income on investments is recognized on accrual basis except treasury bills. Capital gains on investments in shares are also included in investment income. Capital gain is recognized when it is realised. D. Fees and commission income Fees and commission income on services provided by the bank are recognized as and when the services are rendered. Commission charged to customers on letters of credit and letters of guarantee are credited to income at the time of affecting the transactions. E. Dividend income on shares As per BAS 18: Revenue, dividend income from investment in shares is recognised when the Bank's right to receive dividend is established. It recognized when:
a. it is probable that the economic benefits associated with the transaction will flow to the entity; and
b. the amount of the revenue can be measured reliably. F. Interest paid on deposits and borrowing Interest paid on deposits, borrowings etc. is accounted for on accrual basis according to the BAS – 1 “Presentation of Financial Statements”. G. Profit paid on deposits (Islami Banking Branch) Profit paid to different Mudaraba depositors is recognized on accrual basis as per provisional rate. However, the final rate of profit is determined and to be paid to the depositors as per Annexure I.
H. Other operating expenses All other operating expenses are provided for in the books of the account on accrual basis according to the BAS – 1 “Presentation of Financial Statements”.
1.6 Reconciliation of books of account
Books of account with regard to inter-bank (in Bangladesh and outside Bangladesh) and inter-branch transactions are reconciled and no material difference was found which may affect the financial statements significantly. There exist no un-reconciled items in NOSTRO accounts as at 31 December 2009.
1.7 Earning per share A. Basic earning per share Basic earnings per share have been calculated in accordance with BAS- 33 "Earning per Share" which has been shown in the face of the Profit and Loss Account. This has been calculated by dividing the basic earnings by the total ordinary outstanding share. B. Diluted earnings per share No diluted earnings per share is required to be calculated for the year as there was no scope for dilution during the year under review.
1.8 Off-balance sheet items Off-Balance Sheet items have been disclosed under contingent liabilities and other commitments as per Bangladesh Bank's guidelines. In accordance with BRPD Circular # 08 and 10 dated 07 August 2007 and 18 September 2007 respectively general provision @ 1.00% has been made on the outstanding balance of letter of credit, guarantee and acceptances.
1.9 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. Stock of traveller’s cheques, Value of savings certificates (Sanchaya Patra) etc. fall under the memorandum items.
1.10 Reporting period
These financial statements cover one calendar year from 01 January 2009 to 31 December 2009.
1.11 Segment Reporting
By Geographical Location
Inside
Bangladesh
India (Mumbai
Branch)Total
Income Statements
Interest income 9,003,401,681 43,767,527 9,047,169,208 64,205,688 9,111,374,896 Interest paid on deposits and borrowings, etc. 6,135,934,169 10,861,467 6,146,795,636 7,893,206 6,154,688,843 Net interest income 2,867,467,512 32,906,059 2,900,373,571 56,312,482 2,956,686,053
Investment income 2,915,477,543 8,059,681 2,923,537,225 - 2,923,537,225 Commission, exchange and brokerage 2,100,559,448 165,565,697 2,266,125,144 16,607,333 2,282,732,477 Other operating income 167,671,035 3,202,464 170,873,499 32,766,651 203,640,150
Total operating income 8,051,175,538 209,733,902 8,260,909,440 105,686,465 8,366,595,905
OPERATING EXPENSES
Salary and allowances 1,185,430,187 13,801,402 1,199,231,589 19,136,478 1,218,368,066 Rent, taxes, insurance, electricity, etc. 220,753,358 9,725,526 230,478,884 10,831,815 241,310,699 Legal expenses 3,956,488 3,718 3,960,205 89,287 4,049,492 Postage, stamps, telecommunication, etc. 79,103,744 5,273,784 84,377,528 5,639,731 90,017,259 Stationery, printing, advertisement, etc. 118,852,412 1,710,967 120,563,379 313,874 120,877,254 Chief executive's salary and fees 8,484,960 - 8,484,960 8,484,960 Directors' fees 2,374,492 2,374,492 2,374,492 Auditors' fees 1,107,332 1,102,630 2,209,962 186,850 2,396,811 Charges on loan losses - - - Depreciation and repairs of Bank's assets 190,952,657 11,253,768 202,206,424 657,520 202,863,944 Other expenses 565,252,968 39,372,792 604,625,760 1,601,553 606,227,312 Total operating expenses 2,376,268,597 82,244,586 2,458,513,183 38,457,107 2,496,970,290 Profit before provision 5,674,906,941 127,489,316 5,802,396,257 67,229,358 5,869,625,615
Provision against loans and advances 436,600,000 - 436,600,000.00 - 436,600,000
Provision for diminution in value of investments - - - - -
Other provisions 160,900,000 - 160,900,000.00 1,519,861.34 162,419,861
Total provision 597,500,000 - 597,500,000 1,519,861 599,019,861
Profit before taxation 5,077,406,941 127,489,316 5,204,896,257 65,709,497 5,270,605,753
Provision for taxation 1,777,398,202 64,942,054 1,842,340,256 11,080,386 1,853,420,642
Current tax 1,656,388,647 57,827,943 1,714,216,590 11,080,386 1,725,296,976
Deferred tax 121,009,555 7,114,111 128,123,666 - 128,123,666
Net profit after taxation 3,300,008,739 62,547,262 3,362,556,000 54,629,111 3,417,185,111
Balance Sheet
Segment assets 105,391,179,984 1,521,132,398 106,912,312,383 1,186,736,084 107,093,007,184
Segment advances 70,527,446,112 352,487,333 70,879,933,446 1,183,329,813 72,063,263,259
Segment deposits 82,536,705,431 550,423,683 83,087,129,114 - 83,087,129,114
Segment Liabilities 96,112,554,318 713,235,134 96,825,789,452 1,043,543,190 96,872,223,464
Segment Liabilities and share equity 105,941,106,194 971,206,190 106,912,312,383 1,186,736,084 107,093,007,184
The Bank reports its operations under the following two business segments as per Bangladesh Financial Reporting Standards (BFRS)-8
"Operating Segment".
ParticularsAB Bank Limited
& it's Subsidiary
AB Int.
Finance Ltd.
(Hong Kong)
AB Bank Limited
1.12 Compliance of Bangladesh Accounting Standards (BAS) and Bangladesh Financial Reporting Standards (BFRS)
In preparing the Consolidated Financial Statements and separate Financial Statements, Bank applied most of the BAS and BFRS as applicable.
Sl # Name of the BAS BAS # Status
1 Presentation of Financial Statements 1 Complied
2 Inventories 2 N/A
3 Cash Flow Statements 7 Complied
4 Accounting Policies, Changes in Accounting Estimates and Errors 8 Complied
5 Events after the Reporting Period 10 Complied
6 Construction Contracts 11 N/A
7 Income Taxes 12 Complied
8 Segment Reporting 14 Complied
9 Property, Plants and Equipments 16 Complied
10 Leases 17 Complied
11 Revenue 18 Complied
12 Employee Benefits 19 Complied
13 Accounting for Government Grants and Disclosure of Government Assistance
20 N/A
14 The Effects of Changes in Foreign Exchanges Rates 21 Complied
15 Borrowing Costs 23 Complied
16 Related Party Disclosures 24 Complied
17 Accounting for Investments 25 Complied
18 Accounting and Reporting by Retirement Benefit Plans 26 Complied
19 Consolidated and Separate Financial Statements 27 Complied
20 Investment in Associates 28 Complied
21 Disclosures in the Financial Statements of Banks and Similar Financial Institutions
30 Complied
22 Interest in Joint Ventures 31 N/A
23 Financial Instruments: Presentation 32 **
23 Earnings per Share 33 Complied
24 Interim Financial Reporting 34 Complied
25 Impairment of Assets 36 Complied
26 Provisions, Contingent Liabilities and Contingent Assets 37 Complied
27 Intangible Assets 38 Complied
28 Financial Instruments: Recognition & Measurement 39 **
28 Investment Property 40 Complied
29 Agriculture 41 N/A
* N/A = Not Applicable ** Relevant disclosures are made according to the requirement of Bangladesh Bank.
Sl # Name of the BFRS/IFRS BFRS # Status
1 Share- based Payments 2 N/A
2 Business Combinations 3 Complied
3 Insurance contracts 4 N/A
4 Non- current assets Held for sale and Discontinued Operations 5 N/A
5 Exploration for and Evaluation of Mineral Resources 6 N/A
6 Financial Instruments: Disclosure 7 **
7 Operating Segments 8 Complied
* N/A = Not Applicable ** Relevant disclosures are made according to the requirement of Bangladesh Bank.
1.13 Regulatory and legal compliance
The Bank complied with the requirement of the following regulatory and legal authorities : i. The Bank Companies Act, 1991. ii. The Companies Act, 1994. iii. Rules, Regulation and Circulars issued by the Bangladesh Bank from time to time. iv. The Securities and Exchange Rules, 1987. v. The Securities and Exchange Ordinance, 1969. vi. The Securities and Exchange Commission Act, 1993. vii. The Securities and Exchange Commission (Public Issues) Rules, 2006. viii. The Income Tax Ordinance, 1984. ix. The Value Added Tax (VAT), 1991. x. Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and Central Depository
Bangladesh Limited (CDBL) rules and regulations. 1.14 Risk management
Risk is defined as uncertainties resulting in adverse variations of profitability or in 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. The objective of the risk management is that the bank evaluates and takes well calculative business risks and thereby safeguarding the bank’s capital, its financial resources and profitability from various business risks through its own measures and through implementing Bangladesh Bank's guidelines and following some of the best practices as under: A. Credit risk It arises mainly from lending, trade finance 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 Bank’s 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, two separate units have been formed within the credit division. These are (a) Credit Risk Management Unit and (b) Credit Administration 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. 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 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 credit committee.
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 Bank’s and Regulatory polices. Loans are classified as per Bangladesh Bank’s guidelines. Concentration of single borrower / large loan limit is shown in note-7.4. B. Operating risk Operational risk address the risk associated with fraud, forgery, unauthorised activities, error, omission, system failure and external events among others. Bank is managing these risk through written procedures, regular training and awareness programs. Departmental Control Function Checklist (DCFCL), Quarterly Operations Report, Loan Documentation Checklist etc. are in place covering all probable risks associated with bank’s business and operations. Surprise Inspections are also made on a regular basis to make sure that all control tools are functioning properly. C. Market risk The exposure of market risk of the bank is restricted to foreign exchange risk, interest rate risk and equity position risk. i) 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. Financial Institution and Treasury (FIT) division independently conducted the FX transactions and the Mid Office 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 Market rate as determined by Bangladesh Bank at the month - end. All Nostro accounts are reconciled on a monthly basis and outstanding entry 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.
ii) Interest rate risk Interest rate risk may arise from trading portfolio and non- trading portfolio. The trading portfolio of the bank consists of government treasury bills, bond. The short term movement in interest rate is neglilgible or nil. Interest rate risk of non trading business arises from mismatches between the future yield of an asset and its funding cost. Asset Liability Committee (ALCO) monitors the interest rate movement on a regular basis. iii) Equity position risk Equity risk arises from movement in market value of equities held. The risks are monitored by the Investment Banking Division under a well designated policy framework. The market value of equities held was however higher than the cost price at the balance sheet date. D. 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. Management of liquidity and funding is carried out by Financial Institution & Treasury (FIT) department under approved policy guidelines. FIT 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. E. Risk arising from money laundering AB Bank Limited considers prevention of money laundering risk not only as a compliance requirement imposed by the law of the country but also as one of its core business values. The Board of Directors and Senior Management are firmly committed to combat money laundering. Every year, a message from the President and Managing Director’s office goes to all employees of the Bank reiterating the importance of the issue. There is a high profile Central Compliance Unit (CCU) in place to oversee the anty money laundering activities. The President and Managing Director himself supervise the function of CCU's. Operation has separate and dedicated headcount for surveillance of the anti money laundering functions across the Bank. Training and awareness programs are regularly held to make all employees aware of the issue. Bank has also undertaken campaign against money laundering in electronic media.
1.15 Credit Rating of the Bank
Credit rating of the Bank in last three years is:
Bases of incorporation (as on or period)
Date of Rating Long term Short term
Jan to June 2009 September 29, 2009 AA3 ST-1
Jan to Dec 2008 May 24, 2009 A1 ST-2
Jan to Dec 2007 May 15, 2008 A2 ST-2
1.16 Events after the Balance Sheet Date
As per BAS -10 "Events after the Balance Sheet Date" events after the reporting period are those events, favorable and unfavorable, that occur between the end of the reporting period and the date when the financial statements are authorised for issue. Two types of events can be identified:
(a) those that provide evidence of conditions that existed at the end of the reporting period (adjusting events after the reporting period); and (b) those that are indicative of conditions that arose after the reporting period (no adjusting events after the reporting period). There were no material events which have occurred after the reporting period which could affect the values stated in the financial statements.
1.17 Related party disclosures A party is related to the company if: (i) directly or indirectly through one or more intermediaries, the party controls, is
controlled by, or is under common control with, the company; has an interest in the company that gives it significant influence over the company; or has joint control over the company;
(ii) the party is an associate; (iii) the party is a joint venture; (iv) the party is a member of the key management personnel of the Company or its parent; (v) the party is a close member of the family of any individual referred to in (i) or (iv); (vi) the party is an entity that is controlled, jointly controlled or significantly influenced by
or for which significant voting power in such entity resides with, directly or indirectly, any individual referred to in (iv) or (v); or
(vii) the party is a post-employment benefit plan for the benefit of employees of the
company, or of any entity that is a related party of the company. a) Significant contracts where Bank is a party and wherein Directors have interest:
Name of contracts Name of the Party Name of Director and Related by
Lease agreement with AB Bank Ltd. (CARD Department)
Elite International Ltd Mr. Salim Ahmed & Mr. Feroz Ahmed (Common Director)
b) Related party transactions:
Name of organization Relation Nature Amount
(In Taka)
Hyundai Motors Bangladesh Ltd.
Common Director's
Purchase of Vehicles 8,450,800
Elite International Ltd Common Director's
Rent of Card Department
750,000
1.18 Audit Committee of the Board of Directors
i) Particulars of Audit Committee
The Audit Committee of the Board was duly constituted by the Board of Directors of the Bank in accordance with the BRPD Circular No. 12 dated 23 December 2002 issued by Bangladesh Bank. The Committee was formed comprising 3 (three) members of the Board.
Sl. #
Name Status with Bank
Status with Committee
Duration Educational Qualification
01 Mr. Shishir Ranjan Bose, FCA
Director Chairman With effect from
16 July 2008
Fellow of Chartered
Accountants
02 Mr. M. Wahidul Haque Chairman Member With effect from
04 February 2008
BA, LLB
03 Mr. Salim Ahmed Vice-Chairman
Member With effect from
16 July 2008
B.A. (Hons.), M.A. (History)
The Company Secretary acts as Secretary of the Audit Committee of the Board.
ii) Meeting held with Audit Committee
During the year 2009, the audit committee conducted seven (07) meetings in which, among others, the following issues were reviewed and discussed:
comprehensive inspection report of Bangladesh Bank including status of compliance
thereof;
inspection reports of branches/Head Office conducted by Bank's internal inspection team;
financial statements of the Bank;
half-yearly accounts of 2009 of the Bank; and
status of compliance of different rules and regulations.
iii) Steps taken for implementation on effective internal control procedure of the
Bank The Committee placed its report regularly to the Board of Directors of the Bank mentioning its review results and recommendations on internal control system, compliance of rules and regulations and establishment of good governance within the organization.
1.19 Shariah Council
AB Bank Shariah Council was re-constituted during the year 2009 as per provision of it’s By-Laws. Members of Re-constituted Council are as under:
Sl Name
Status With the
Committee
Educational Qualification
1 Mr. Shah Abdul Hannan
Chairman Masters in Economics from Dhaka University & Scholar of Islamic Studies.
2 Mr. M. Azizul Haue Vice-Chairman M.A (Economics) Dhaka University & Scholar of Islamic Banking.
3 Dr. Md. Harun Rashid
Member M.A, M. Phil P.H.D (Aligor University), India. Islamic Law (1st class), Dewband, India. Fazel-E-Dewband (1st class), Dewband, India.
4 Mr. Muhammad Musa
Member Kamil, Madrasah Education Board, Dhaka. B.Com. (Hons.) & M.Com, Dhaka University.
5 Mr. M. Wahidul Haque Chairman, ABBL
Member BA, LLB
6 Mr. Kaiser A. Chowdhury
Member M.A (Economics) Dhaka University
7 Mr. Mukhlesur Rahman
Member Secretary
Kamil, Madrasah Education Board, Dhaka. B.A (Hons) & M.A in Islamic Studies, Dhaka University Higher Diploma in Arabic Language, Dhaka University.
During the year 2009, the Shariah Council & its Standing Committee met in four meetings. In these meetings different issues were discussed and prudent guidance/opinion were given among which important ones are as under:
Reviewing the Final Accounts 2008 of Islami Banking Branch in accordance with the Shariah principles.
Reviewing the Shariah Audit 2007 and 2008 and its’ observations. Formulating Guideline for selecting Institution and firms for Merchant Banking as per Islamic Shariah principles. Reviewing proposed `Higher Education Investment Scheme.’ Analyzing `Guideline for Islamic Banking’ issued by Bangladesh Bank
1.20 Number of employees
1.21 Name of Directors and the entities in which they had interest as at 31 December 2009
i) Deundi Tea Company (UK) Ltd.ii) The Noyapara Tea (UK) Ltd.i) Elite Chemical Industries Ltd.
ii) Elite International Ltd.
iii) Hexagon Chemical Complex Ltd.
iv) Super Petro Chemical (Pvt.) Ltd.v) Elite Super Plastic Ind. Ltd.
vi) Super Share & Securities Ltd.
vii) Elite Properties Management Ltd.
viii) Bangladesh General Insurance Co. Ltd.
ix) Ahmed Secutities Services Ltd.x) Elite Oil Refinery Ltd.xi) Centre Point Hospital (Pvt.) Ltd.i) Elite Chemical Industries Ltd.
ii) Elite International Ltd.
iii) Hexagon Chemical Complex Ltd.
iv) Ahmed Secutities Services Ltd.4. Mr. M. A. Awal Director
5. Mr. Shishir Ranjan Bose, FCA Independent Director
6.Mr. Faheemul Huq, Barrister-at-
LawDirector
i) Syed Ishtiaq Ahmed & Associatesii) Managwell Investment Limited
8. Mr. Mishaal Kabir Director
i) Reptiles Firm Ltd.
ii) Therapeutics Bangladesh Ltd.i) Hyundai Motors Bangladesh Ltd.
ii) Therapeutics Bangladesh Ltd.11. Mr. B. B. Saha Roy Director
12. Dr. M. Imtiaz Hossain Depositor Director
13. Mrs. Runa Zakia Shahrood Khan Depositor Director
14. Mr. Kaiser A. ChowdhuryPresident &
Managing Director
1.22 Approval of financial statements
These financial statements were approved by the Board of Directors on 29 April 2010.
2. General
i.
ii. Figures in these notes and in the annexed financial statements have been rounded off to the nearest Taka.
iii.
N/A
N/A
The number of employees engaged for the whole year or part thereof who received a total remuneration of Taka
36,000 or above was 1952. (Last Year 1804)
Mr. Feroz Ahmed Director3.
2.
Mr. M. Wahidul Haque Chairman1.
7.Mr. Syed Afzal Hasan Uddin,
Barrister-at-LawDirector
N/A
Hyundai Motors Bangladesh Ltd.
Mr. Md. Mesbahul Hoque9. Director
Name
Name of the firms/companies in which the
director had interest as proprietor/partner/
director/managing agent/guarantor, etc.
StatusSl.
#
Wherever considered necessary, previous year’s figures have been rearranged for the purpose of comparison
with current year's presentation without creating any impact on the operating result and value of assets and
liabilities as reported in the financial statements.
Vice ChairmanMr. Salim Ahmed
10.
S.R. Bose & Co. , Chartered Accountants
These notes form an integral part of the annexed financial statements and accordingly are to be read in
conjunction therewith.
Mr. Md. Anwar Jamil Siddiqui Director
N/A
CONTIC
N/A
31.12.2009 31.12.2008
Taka Taka
3. Cash
Cash in hand 489,993,012 679,556,149
Balance with Bangladesh Bank and its agent bank(s) 4,864,888,564 3,416,488,006
5,354,881,576 4,096,044,155
3(a) Consolidated Cash
AB Bank Limited 5,354,881,576 4,096,044,155
AB International Finance Limited - -
5,354,881,576 4,096,044,155
3.1 Cash in hand
In local currency 463,150,868 648,223,663
In foreign currency 26,842,144 31,332,486
489,993,012 679,556,149
3.1(a) Consolidated Cash in hand
AB Bank Limited 489,993,012 679,556,149
AB International Finance Limited - -
489,993,012 679,556,149
3.2 Balance with Bangladesh Bank and its agent bank(s)
Balance with Bangladesh Bank
In local currency 4,400,326,087 2,970,771,116
In foreign currency 156,824,678 89,717,952
4,557,150,765 3,060,489,069
Sonali Bank
(as an agent bank of Bangladesh Bank) - local currency 307,737,799 355,998,938
4,864,888,564 3,416,488,006
3.2(a) Consolidated Balance with Bangladesh Bank and its agent bank(s)
AB Bank Limited 4,864,888,564 3,416,488,006
AB International Finance Limited - -
4,864,888,564 3,416,488,006
3.3 Statutory deposits
Cash reserve ratio and statutory liquidity ratio
(a) Cash Reserve Ratio (CRR)
Required reserve 3,845,486,020 2,974,341,820
Actual reserve maintained 4,400,326,087 2,980,529,000
Surplus 554,840,067 6,187,180
(Note: 3.1)
(Note: 3.2)
The statutory cash reserve ratio is required on the Bank's time and demand liabilities at the rate of 5% and has been
calculated and maintained with Bangladesh Bank in current account while statutory liquidity ratio of 18% is required,
including cash reserve ratio, on the same liabilities is also maintained in the form of treasury bills, bonds and debentures
including foreign currency balance with Bangladesh Bank. Both the reserves are maintained by the Bank in excess of the
statutory requirements, as shown below :
Cash reserve ratio and statutory liquidity ratio have been calculated and maintained in accordance with section 33 of the
Banking Companies Act 1991 and Bangladesh Bank BRPD's subsequent circular nos. 11 and 12 dated 25 August 2005.
As per Bank ledger, balance with Bangladesh Bank (local currency) is Tk.4,400,326,087 while as per Bangladesh Bank
Statements balance is Tk. 4,395,704,003. Difference is properly reconciled and was adjusted before reporting date.
31.12.2009 31.12.2008
Taka Taka
(b) Statutory Liquidity Reserve (SLR)
Required reserve 9,998,263,652 7,733,288,732
Actual reserve maintained 10,446,355,129 8,163,405,862
Surplus 448,091,477 430,117,130
Total required reserve 13,843,749,672 10,707,630,552
Total actual reserve held 14,846,681,216 11,143,934,862
Total surplus 1,002,931,544 436,304,310
4. Balance with other banks and financial institutions
In Bangladesh 1,111,711,079 993,310,233
Outside Bangladesh 2,382,407,068 1,306,774,151
3,494,118,146 2,300,084,385
4.1 In Bangladesh
Current Deposits
Standard Chartered Bank, Dhaka City Centre Branch 2,546,348 1,764,102
Agrani Bank Ltd., Laldighir Par Branch, Modhuban, Sylhet 91,571 6,224
Agrani Bank Ltd., Brahmanbaria Branch 55 4,280
Agrani Bank Ltd., Principal Branch, Dilkusha, Dhaka 26,080 26,080
Islami Bank Bangladesh Ltd., Local Office 2,727 2,727
Agrani Bank Ltd., Bhairab Bazar Branch 1,579 5,001,579
The Trust Bank Ltd., Corporate Branch, Dilkusha, Dhaka 2,187,493 447,302
Janata Bank Ltd., Jessore Branch 145,300 48,922
Agrani Bank Ltd., Shaheb Bazar Branch, Rajshahi 11,255 290
Agrani Bank Ltd., Rangpur Branch 36,063 -
Agrani Bank Ltd., Mymensingh Branch 98,972
Bank Asia Ltd., Principal Branch 529,600 -
Agrani Bank Ltd., Thana Road Branch, Bogra 10,000,282 30,001,968
15,677,325 37,303,474
Short Term Deposits
Agrani Bank Ltd., Rangpur Branch 26,640,607 4,042,678
Agrani Bank Ltd., Saidpur Branch 9,174,106 7,597,668
Agrani Bank Ltd., Modhuban Branch, Sylhet 332,950 323,577
Agrani Bank Ltd., Bogra Branch 7,530 7,530
Agrani Bank Ltd., Jhikargachha Branch 33,721 13,149
Agrani Bank Ltd., Sir Iqbal Road Branch, Khulna 19,583 7,046
Agrani Bank Ltd., Naogaon Branch 2,121,971 6,398,066
Islami Bank Bangladesh Ltd., Local Office 60,812 60,118
Agrani Bank Ltd., Jessore Branch 17,652,979 9,538,402
Agrani Bank Ltd., Moulvi Bazar Branch 241 1,100,241
Agrani Bank Ltd., Satkhira Branch 7,227 662,517
Agrani Bank Ltd., Court Road Branch, Narayanganj 3,961 3,903
Agrani Bank Ltd., Chawk Bazar Branch, Barisal 38,389,595 24,997,331
Southeast Bank Ltd., Principal Branch 49,120 49,120
Agrani Bank Ltd., Local Office 985 21,840
Rupali Bank Ltd., Barisal Branch - 639
94,495,388 54,823,824
Savings Deposits
Social Islamic Bank Ltd. Principal Branch 921,106 610,198
617,261 572,738
1,538,366 1,182,936
Fixed Deposits
Islamic Finance and Investment Ltd. 150,000,000 200,000,000
Premier Bank Ltd. 200,000,000 -
Hajj Finance Company Ltd. 50,000,000 -
South East Bank Ltd. - 100,000,000
Al-Arafah Islami Bank Ltd. - 100,000,000
Social Islamic Bank Ltd. 300,000,000 200,000,000
Phoenix Finance and Investment Ltd. 300,000,000 300,000,000
1,000,000,000 900,000,000
1,111,711,079 993,310,234
Shahjalal Islami Bank Ltd., Foreign Exchange Branch
(Note: 4.1)
(Note: 4.2)
31.12.2009 31.12.2008
Taka Taka
4.1(a) Consolidated In Bangladesh
AB Bank Limited 1,111,711,079 993,310,234
AB International Finance Limited - -
1,111,711,079 993,310,234
4.2 Outside Bangladesh
Current Deposits
The Bank of Tokyo Mitsubishi Ltd. 26,663,722 5,034,227
HSBC Plc 20,560,658 -
Lloyds TSB Bank Plc 3,833,487 5,054,192
HSBC (Mumbai) 11,983,527 207,145
JP Morgan Chase Bank 16,830,732 -
Sonali Bank (Kolkata) 6,967,668 2,500,113
Myanmar Economic Bank 28,399 28,256
Citibank NA 333,329,929 25,193,940
Hatton National Bank Ltd. 1,646,518 22,533
Commerz Bank AG 1,382,670 13,192,163
AB International Finance Ltd. 1,123,713,674 820,699,359
State Bank of India 1,089,241 1,083,788
NIB Bank Ltd. 10,370,802 2,579,592
Lloyds TSB Bank Plc 1,745,377 4,297,465
Mashreq Bank Psc 10,319,507 11,806,293
Nepal Bangladesh Bank Ltd. 4,347,992 1,866,129
Bank of Bhutan 4,798,433 3,104,276
HSBC Plc 356,239 -
BCCI 117,452 116,864
Wachovia Bank 31,295,436 1,006,416
Habib America Bank 16,063,722 22,009,910
Commerz Bank AG 44,465,379 30,240,692
Hypovereins Bank 9,092,336 3,252,465
HSBC - 693,017
National Commercial Bank Ltd 11,252,756 3,444,965
Habib Metro Bank 664,960 -
U.B.A.F-BANQUES 1,383,602 -
Habib Bank AG 688,310 -
Reserve Bank of India 26,081,424 22,493,783
HDFC Bank 68,711,274 75,412,109
Central Bank of India 276,734 268,032
Commerz Bank AG (Euro) 23,744 2,538,499
HSBC (Euro) 454,327 3,168,637
HSBC (GBP) 1,883,378 22,206,075
HSBC (USD) 346,327,961 159,451,771
JP Morgan Chase Bank 5,735,697 35,263,444
2,144,487,068 1,278,236,151
Fixed Deposits
HDFC Bank 237,920,000 28,538,000
2,382,407,068 1,306,774,151
(Currency wise Balance is given in Annexure - A)
4.2(a) Consolidated Outside Bangladesh (Nostro Accounts)
AB Bank Limited 2,382,407,068 1,306,774,151
AB International Finance Limited 1,091,035 6,835,674
2,383,498,103 1,313,609,825
Less: Inter company transactions 1,000,837,339 824,316,713
1,382,660,764 489,293,112
31.12.2009 31.12.2008
Taka Taka
4.3
Current deposits 2,160,164,392 1,344,077,625
Savings deposits 1,538,366 1,182,936
Short-term deposits 94,495,388 54,823,824
Fixed deposits 1,237,920,000 900,000,000 3,494,118,147 2,300,084,385
4.4 Maturity grouping of balance with other banks
Repayable – on demand 2,160,164,392 1,400,013,425
– upto 3 months 304,213,755 420,000,000
– over 3 months but below 1 year 1,029,740,000 480,000,000
– over 1 year but below 5 years - -
– over 5 years - - 3,494,118,147 2,300,013,425
5. Money at call and on short notice
With banking companies
Southeast Bank Ltd. - 100,000,000
Jamuna Bank Ltd - 24,900,000
Bank of Ceylon, Corporate Branch - 704,362,400
- 829,262,400
With non-banking financial institutions
People's Leasing and Financial Services Ltd. 120,000,000 130,000,000
First Lease International Ltd. 80,000,000 80,000,000
International Leasing and financial Services Ltd 200,000,000 -
Uttara Finance and Investment Ltd 50,000,000 -
National Housing Company Ltd. 50,000,000 - Bay Leasing Company Ltd. 100,000,000 80,000,000
600,000,000 290,000,000 On calls and placements -ABBL, Mumbai Branch - 71,345,000
600,000,000 1,190,607,400
5(a) Consolidated Money at call and on short notice
AB Bank Limited 600,000,000 1,190,607,400
AB International Finance Limited - - 600,000,000 1,190,607,400
6. Investments
Investment securities are classified as follows:
Held for trading 3,161,717,761 3,401,227,000
Held to maturity 6,481,038,000 3,718,975,661
Others 6,726,547,464 4,275,733,401 16,369,303,225 11,395,936,062
6 (a) Consolidated investments
AB Bank Limited 16,369,303,225 11,395,936,062
AB International Finance Limited - - 16,369,303,225 11,395,936,062
Account-wise/grouping of balance with other banks and
financial institutions
31.12.2009 31.12.2008
6.1 Government securities Taka Taka
Treasury bills:
182 days' treasury bills 886,644,660 175,167,360
364 days' treasury bills 1,747,354,862 862,890,518
2,633,999,522 1,038,057,878
Treasury bills - Reverse Repo with :
City Bank Ltd. - 300,000,000
Debentures-
Bangladesh House Building Finance Corporation 30,000,000 35,000,000
(Maturity date: 14 March 2015, interest rate: 5.50%)
2,663,999,522 1,373,057,878
Government bonds
Prize bonds 2,710,700 3,980,600
Treasury bonds 7,008,756,240 5,782,144,784
7,011,466,940 5,786,125,384
Total Government securities 9,675,466,462 7,159,183,261
6.1.1 Treasury bonds
Type Rate of interest
BD Govt. Treasury Bond 7.50% 100,593,109 -
BD Govt. Treasury Bond 7.50% 201,056,176
BD Govt. Treasury Bond 7.50% 200,803,673
BD Govt. Treasury Bond 10.82% 170,800,000 170,800,000
BD Govt. Treasury Bond 10.82% 120,000,000 120,000,000
BD Govt. Treasury Bond 12.19% 427,234,914 -
BD Govt. Treasury Bond 12.15% 148,110,134 -
BD Govt. Treasury Bond 10.74% 250,000,000 250,000,000
BD Govt. Treasury Bond 10.69% 30,000,000 30,000,000
BD Govt. Treasury Bond 10.65% 100,000,000 100,000,000
BD Govt. Treasury Bond 10.65% 50,000,000 50,000,000
BD Govt. Treasury Bond 11.74% 20,000,000 20,000,000
BD Govt. Treasury Bond 10.65% 100,000,000 100,000,000
BD Govt. Treasury Bond 10.14% 100,138,994 -
BD Govt. Treasury Bond 7.50% 301,276,890
BD Govt. Treasury Bond 11.72% 403,986,132 -
BD Govt. Treasury Bond 11.72% 179,503,019 -
BD Govt. Treasury Bond 11.74% 450,000,000 450,000,000
BD Govt. Treasury Bond 11.72% 282,000,000 282,000,000
BD Govt. Treasury Bond 11.72% 207,500,000 207,500,000
BD Govt. Treasury Bond 11.72% 150,000,000 150,000,000
BD Govt. Treasury Bond 11.72% 152,000,000 152,000,000
BD Govt. Treasury Bond 11.72% 200,000,000 200,000,000
BD Govt. Treasury Bond 11.72% 145,500,000 145,500,000
BD Govt. Treasury Bond 11.72% 145,000,000 -
BD Govt. Treasury Bond 11.72% 200,000,000 200,000,000
BD Govt. Treasury Bond 11.72% 155,000,000 155,000,000
BD Govt. Treasury Bond 11.72% 119,431,804 145,000,000
BD Govt. Treasury Bond 11.72% - 100,450,622
BD Govt. Treasury Bond 11.72% 407,276,706 95,340,989
BD Govt. Treasury Bond 11.72% 110,309,054 -
BD Govt. Treasury Bond 11.72% 182,563,693 150,323,566
BD Govt. Treasury Bond 11.72% 100,000,000 -
BD Govt. Treasury Bond 11.72% 239,058,080 -
BD Govt. Treasury Bond 11.72% 565,142,516 -
BD Govt. Treasury Bond 11.72% 150,000,000 -
BD Govt. Treasury Bond 12.22% 144,471,344
BD Govt. Treasury Bond 11.72% - 153,129,606
7,008,756,240 3,427,044,784
21 November 2012
21 November 2012
18 April 2018
05 December 2017
19 December 2012
20 May 2014
25 July 2018
07 May 2018
02 January 2018
06 February 2018
04 June 2018
02 April 2018
(Note: 6.1.1)
Maturity date
04 July 2017
08 August 2017
19 September 2012
17 October 2012
07 May 2018
04 February 2019
18 July 2012
18 July 2012
10 April 2011
20 September 2011
12 June 2011
06 August 2018
02 July 2018
02 July 2018
02 July 2018
06 August 2018
06 August 2018
06 August 2018
03 September 2018
08 October 2018
08 October 2018
04 February 2019
03 September 2018
13 February 2023
04 February 2019
03 April 2019
31.12.2009 31.12.2008
Taka Taka
Treasury bonds - Reverse Repo
BD Govt. Treasury Bond 8.75% - 1,455,100,000
BD Govt. Treasury Bond 8.75% - 300,000,000
BD Govt. Treasury Bond 9.50% - 200,000,000
BD Govt. Treasury Bond 9.50% - 250,000,000
BD Govt. Treasury Bond 9.75% - 150,000,000
- 2,355,100,000
7,008,756,240 5,782,144,784
Treasury Bond - Reverse Repo (Bank wise) :
Jamuna Bank Ltd - 1,905,100,000
Eastern Bank Ltd. - 450,000,000
- 2,355,100,000
6.1(a) Consolidated Government securities
AB Bank Limited 9,675,466,462 7,159,183,261
AB International Finance Limited - -
9,675,466,462 7,159,183,261
6.2 Other investments
Shares 6,489,276,377 4,061,996,864
Zero Coupon bond 12,648,018 30,000,000
Investments -ABBL, Mumbai branch
Treasury bills 186,261,769 140,332,547
Debentures and bonds 5,650,600 4,423,390
191,912,369 144,755,937
Total other investments 6,693,836,764 4,236,752,801
Total investments 16,369,303,226 11,395,936,062
6.2 (a) Consolidated other investments
AB Bank Limited 6,693,836,764 4,236,752,801
AB International Finance Limited - -
6,693,836,764 4,236,752,801
6.2.1 Investments in Shares
Quoted
Powergrid Company Ltd. 1,207,665,683 889,558,736
International Finance Investment and Commerce Bank Ltd. - 123,351,866
Beximco Pharma Ltd. 158,348,355 366,687,426
Square Pharmaceuticals Ltd. 125,480,450 44,222,650
Southeast Bank Ltd. 29,650,302 61,441,040 Prime Bank Ltd. - 1,172,609 Beximco Ltd. - 241,400,781
Social Investment Bank Ltd. - 28,882,834
Lafarge Surma Cement Ltd. 574,538,061 553,990,123 National Life Insurance Company Ltd. 31,998,396 47,059,951
Usmania Glass Sheet Factory Ltd. 11,567,005 23,520,129 DESCO - 27,520,600 People's Leasing and Financial Services Ltd. - 516,953 Prime Life Insurance Company Ltd. 3,122,560 381,137
Heidelberg Cement Ltd. - 66,209,775 ACI Ltd. - 268,604,265
United Commercial Bank Ltd. 487,688,713 487,688,713
Aramit limited 11,492,038 -
Apex Adel. F.wear 271,129,478 273,017,178 Grameen Mutual Fund 2 69,355,700 -
(Note 6.2.1)
15 February 2009
04 March 2009
01 January 2009
01 January 2009
05 February 2009
31.12.2009 31.12.2008Taka Taka
Investment Corporation of Bangladesh 2,207,535 - BEXTEX Ltd. 350,304,840 - Singer BD Ltd 12,569,044 - S Alam Coll Rolled Mills 1,660,500 - BSRM Steel 180,957,890 - Apex Tannery Ltd. - 19,819,715 Shinepukur Ceramic Company Ltd. - 198,000,000 Summit Alliance Port Ltd. - 35,943,713
Meghna Cement Ltd. - 17,421,423
Miracle Industries Ltd. - 2,379,850
Titas Gas Ltd. 1,312,405,195 55,479,375
Premier Bank Ltd. - 62,713,275 Meghna Life Insurance Company Ltd. 4,893,627 15,761,802 Green Delta Insurance Company Ltd. 2,285,067 831,360
Pubali Bank Ltd. - 1,433,475 Islamic Finance and Investment Company Ltd. 123,351,866 4,626,113 JMI Bangla Company Ltd. - 960,000 Prime Finance and Investment Company Ltd. 97,562,794 - Fareast Islami Life Insurance Company Ltd. 123,332,703 - Delta Life Insurance Company Ltd. 465,850 - Sandhani Life Insurance Company Ltd. 1,886,850 -
Summit Power Ltd. 85,047,538 -
Padma Oil 221,954,200 -
Jamuna Oil 798,168,576 -
Industrial Development and Leasing Company of Bangladesh Ltd. 25,240,815 - LankaBangla Finance Ltd. 21,544,750 -
6,347,876,377 3,920,596,864 Unquoted
Central Depository Bangladesh Ltd. 10,000,000 10,000,000
Everest Power Ltd. 50,000,000 50,000,000
Cash Link Bangladesh Ltd. 71,400,000 71,400,000
Industrial and Infrastructure Development Finance Company Ltd. 10,000,000 10,000,000
141,400,000 141,400,000 6,489,276,377 4,061,996,864
(A Schedule of Investment in shares is given in Annexure - B)
31.12.2009 31.12.2008
Taka Taka
6.3 Maturity grouping
Repayable – on demand 2,170,889,206 2,870,019,373
– upto 3 months 1,874,202,385 1,418,899,973
– over 3 months but below 1 year 5,285,382,925 2,802,652,560
– over 1 year but below 5 years 1,724,668,843 1,665,719,373
– over 5 years 5,314,159,867 2,651,244,784
16,369,303,225 11,408,536,062
7. Loans and advances
7.1 Maturity grouping
Repayable – on demand 7,743,428,372 8,157,644,320
– upto 3 months 12,825,435,523 12,578,185,336
– over 3 months but below 1 year 28,046,756,800 32,275,265,435
– over 1 year but below 5 years 19,424,963,800 1,134,175,438
– over 5 years 1,691,967,700 267,087,719
69,732,552,194 54,412,358,249
7.2 Broad category-wise breakup
In Bangladesh
Loans 57,422,370,679 32,998,371,906
Overdrafts 12,033,737,445 21,074,025,125
Cash credits - -
69,456,108,124 54,072,397,031
Outside Bangladesh: ABBL, Mumbai Branch
Loans 227,204,006 309,577,962
Overdrafts 49,240,064 30,383,256
Cash credits - -
276,444,070 339,961,218
69,732,552,194 54,412,358,249
7.3 Significant concentration
Advances to allied concerns of Directors - -
Advances to Chief Executive 11,276,722 11,793,723
Advances to industries 23,901,800,000 21,833,700,000
Advances to customer groups 45,819,475,472 32,566,864,526
69,732,552,194 54,412,358,249
7.4
Total capital of the Bank 10,790,267,058 7,439,796,153
Number of clients 32 34
Amount of outstanding advances 26,407,700,000 18,732,200,000
Amount of classified advances - -
Measures taken for recovery Not applicable Not applicable
7.5 Industry-wise loans and advances
Agriculture 1,067,129,000 802,000,000
Large and medium scale industry 11,528,200,000 8,169,307,374
Working capital 12,333,500,000 10,614,584,118
Export 2,448,900,000 3,035,433,304
Commercial lending 28,009,200,000 20,614,600,000
Small and cottage industry 40,100,000 32,900,000
Others 14,305,523,194 11,143,533,453
69,732,552,194 54,412,358,249
Advances to customers for more than 10% of Bank's total
capital
31.12.2009 31.12.2008
Taka Taka
7.6 Geographical location-wise (division) distribution
In Bangladesh
Urban Branches
Dhaka 41,564,209,062 33,019,277,814
Chittagong 18,357,351,109 13,404,459,566
Khulna 1,891,188,223 1,794,520,559
Sylhet 1,361,508,300 964,183,598
Barisal 162,885,426 181,003,528
Rajshahi 2,631,058,698 1,812,549,475
65,968,200,818 51,175,994,540
Rural Branches
Dhaka 2,173,824,637 1,674,901,710
Chittagong 515,550,523 608,321,666
Khulna 329,502,210 276,909,646
Sylhet 469,029,936 336,269,470
Barisal - -
Rajshahi - -
3,487,907,306 2,896,402,492
Outside Bangladesh
ABBL, Mumbai Branch 276,444,070 339,961,218
69,732,552,194 54,412,358,249
7.7 Classification of loans and advances
Unclassified
Standard 67,646,383,518 52,492,279,672
Special mention account 136,999,863 224,697,000
Total unclassified loans and advances 67,783,383,381 52,716,976,672
Classified
Substandard 648,984,735 228,697,000
Doubtful 521,036,000 132,596,000
Bad/Loss 779,148,078 1,334,088,577
Total classified loans and advances 1,949,168,813 1,695,381,577
69,732,552,194 54,412,358,249
7.8 Particulars of loans and advances
(i)
(ii)- -
(iii)
15,472,038,948 9,449,822,956
(iv) - -
69,732,552,194 54,412,358,249
54,260,513,247
Loans adversely classified but provision not maintained thereagainst
44,962,535,293 Loans considered good in respect of which the Bank is fully secured
Loans considered good against which the Bank holds no security
other than the debtors’ personal guarantee
Loans considered good and secured by the personal undertaking of
one or more parties in addition to the personal guarantee of the
debtors
31.12.2009 31.12.2008
Taka Taka
(v)
(vi)
- -
(vii)
448,082,293 203,469,000
(viii)
- -
(ix) - -
(x)- -
(a) (231,295,145) (1,739,267)
(b) 633,098,000 105,069,000
(c) 101,523,000 63,036,000
(d)426,910,450 658,205,595
(e) 121,055,097 82,628,503
(xi)
During the year 633,098,000 105,069,000
1,940,977,000 1,508,318,000
2,532,516,000 2,333,951,000
4,473,493,000 3,842,269,000
1,851,378,000 1,418,719,000
7.9 Securities wise loans and advances
Nature of security
Collateral of movable/immovable assets 36,345,736,580 32,330,785,682
Cash collateral 4,875,902,870 3,287,611,604
Banks and financial institutions guarantee 142,483,840 352,176,519
Personal guarantee 6,733,498,820 5,370,947,562
Corporate guarantee 7,519,898,680 4,635,303,983
Other securities 14,115,031,404 8,435,532,899
69,732,552,194 54,412,358,249
7(a) Consolidated Loans and advances
AB Bank Limited 69,732,552,194 54,412,358,249
AB International Finance Limited - -
69,732,552,194 54,412,358,249
8. Bills purchased and discounted
In Bangladesh 1,071,337,988 2,190,741,253
Outside Bangladesh - ABBL, Mumbai Branch 76,043,263 105,672,403
1,147,381,251 2,296,413,657
448,082,293
Loans due from companies or firms in which the directors of the
Bank are interested as directors, partners or managing agents or, in
case of private companies, as members
Maximum total amount of advances, including temporary advances
made at any time during the year to directors or managers or
officers of the Bank or any of them either separately or jointly with
any other persons [note 7.8 (a)]
Maximum total amount of advances, including temporary advances
granted during the year to the companies or firms in which the
directors of the Bank are interested as directors, partners or
managing agents or, in the case of private companies, as members
Due from other banking companies
Cumulative to-date (as per Bangladesh Bank guidelines)
Increase/(decrease) of provision (specific)
Amount of loan written off
Amount realised against loan previously written off
Provision kept against loans classified as bad /loss on the date of
preparing the balance sheet
Interest charged to interest suspense account
Amount of classified loans on which interest has not been charged
Written off loan
7.8 (a)
Cumulative to-date (in amicable settlement)
The amount of written off loans for which lawsuits have been
filed for its recovery
The amount represents loans Tk.447,942,293 due by the employees of the Bank & Tk.140,000 by the directors.
Loans due by directors or officers of the Bank or any of them either
separately or jointly with any other persons [note 7.8 (a)] 360,362,650
31.12.2009 31.12.2008
Taka Taka8.1 Maturity grouping
Repayable – within 1 month 229,476,250 688,924,097
– over 1 month but within 3 months 917,905,001 1,331,919,921
– over 3 months but within 6 months - 275,569,639
– over 6 months - -
1,147,381,251 2,296,413,657
8(a) Consolidated Bills purchased and discounted
AB Bank Limited 1,147,381,251 2,296,413,657
AB International Finance Limited 1,183,329,813 952,691,801
2,330,711,064 3,249,105,458
9. Fixed assets including premises, furniture and fixtures
Cost:
Land and Building 1,890,085,445 1,900,594,080
Furniture and fixures 129,167,546 178,652,199
Office appliances 57,101,776 48,633,015
Electrical appliances 592,715,898 595,748,777
Motor vehicles 316,447,139 265,058,436
Leasehold assets 8,020,074 8,020,074
2,993,537,878 2,996,706,581
Less: Accumulated depreciation 552,575,221 552,056,347
2,440,962,657 2,444,650,234
A Schedule of Fixed Assets is given in Annexure - C.
9(a) Consolidated Fixed assets including premises, furniture and fixtures
Cost:
AB Bank Limited 2,993,537,878 2,996,706,581
AB International Finance Limited 11,449,495 11,426,282
3,004,987,373 3,008,132,863
Accumulated depreciation:
AB Bank Limited 552,575,221 552,056,347
AB International Finance Limited 11,375,563 11,315,050
563,950,785 563,371,397
2,441,036,589 2,444,761,466
10. Other assets
Income generating
In Bangladesh:
Arab Bangladesh Bank Foundation 300,051,122 300,051,122
Outside Bangladesh:
AB International Finance Ltd., Hong Kong 5,203,944 5,203,944
(wholly owned subsidiary company of ABBL)
305,255,066 305,255,066
31.12.2009 31.12.2008
Taka Taka
Non-income generating
Inter-branch adjustment 92,423,134 651,672,022
Advance corporate income tax (Note: 10.1) 3,158,776,307 1,828,324,016
Accounts receivable 998,581,954 1,028,589,408
Preliminary, formation, organisational, renovation,
development, prepaid expenses and others 1,804,905,746 1,121,352,578
Exchange for clearing 870,737,423 471,174,214
Interest accrued on investment but not collected,
commission and brokerage receivable on shares
and debentures, and other income receivables 367,047,393 365,974,878
Security deposits 65,935,812 66,190,426
Local drafts paid without advice - -
Advance rent and advertisement 69,971,185 50,198,408
Stationery, stamps, printing materials, etc 39,479,313 28,787,425
Interest on bearer certificates of deposit - -
7,467,858,266 5,612,263,376
7,773,113,332 5,917,518,443
10(a) Consolidated Other assets
AB Bank Limited 7,773,113,332 5,917,518,443
AB International Finance Limited 2,241,304 7,160,293
7,775,354,636 5,924,678,736
Less: Inter-group transaction 5,203,944 5,203,944
7,770,150,692 5,919,474,791
10.1 Advance corporate income tax
In Bangladesh:
Balance at 01 January 1,689,914,412 909,830,893
Add: Paid during the year 1,280,647,393 896,758,330
Add: Tax withheld during the year 32,011,044 28,062,150
1,312,658,437 924,820,480
Less: Settlement during the year - 144,736,961
Balance at 31 December 3,002,572,849 1,689,914,412
Advance tax paid by ABBL, Mumbai Branch 156,203,458 138,409,604
3,158,776,307 1,828,324,016
11. Borrowings from other banks, financial institutions and agents
In Bangladesh (Note: 11.1) 6,105,823,504 2,924,753,879
Outside Bangladesh (Note: 11.2) 19,337,836 268,589,159
6,125,161,339 3,193,343,038
11.1 In Bangladesh
Bangladesh Bank refinance
26,332,604 -
1,007,043,594 904,753,879
SME & Women Entrepreneure 41,900,000 -
1,075,276,198 904,753,879
Islamic Investment Bonds
ADB loan
31.12.2009 31.12.2008
Taka Taka
Call & Term Borrowing from
Agrani Bank Ltd. 400,050,000 100,000,000
Rupali Bank Ltd. 500,055,556 500,000,000
Bangladesh Krishi Bank 1,000,000,000 -
Pubali Bank Ltd. 250,000,000 -
Uttara Bank Ltd. 300,035,417 -
United Commercial Bank Ltd. 1,000,000,000 -
Brac Bank Ltd. 100,012,500 -
Trust Bank Ltd. 300,247,917 -
Dutch Bangla Bank Ltd. - 200,000,000
380,045,917 -
Premier Bank Ltd. 150,000,000
Bangladesh Shilpa Bank 200,025,000 80,000,000
National Bank Ltd. - 350,000,000
One Bank Ltd. - 110,000,000
Bank of Small Industries and Cottage Ltd. - 130,000,000
Janata Bank Ltd. 600,075,000 400,000,000
5,030,547,306 2,020,000,000
6,105,823,504 2,924,753,879
11.2 Outside Bangladesh
HSBC UK (USD) - 4,535,291
HSBC Karachi (USD) 1,485,567 -
HSBC UK (UKP) - 313,793
JP Morgan Chase Bank - 162,812,278
American Express Bank Ltd. - 43,435,628
HSBC 17,852,269 57,492,167
19,337,836 268,589,159
(A Schedule of Borrowings from other banks, financial institutions and agents outside Bangladesh is given in Annexure - D)
11.3 Analysis by security
Secured (assets pledge as security for liabilities) - -
Unsecured 6,125,161,339 3,193,343,038
6,125,161,339 3,193,343,038
11.4 Repayment pattern
Repayable on demand 5,049,885,141 2,288,589,159
Repayable on maturity (Note: 11.4.1) 1,075,276,198 904,753,879
6,125,161,339 3,193,343,038
11.4.1 Repayable on maturity
Bangladesh Bank refinance:
ADB loan 26,332,604 -
SME & Women Entrepreneure 41,900,000 -
68,232,604 -
Term borrowings:
Islamic Investment Bonds 1,007,043,594 904,753,879
1,075,276,198 904,753,879
11(a) Consolidated Borrowings from other banks, financial institutions and agents
AB Bank Limited 6,125,161,339 3,193,343,038
AB International Finance Limited 1,011,963,306 824,316,713
7,137,124,645 4,017,659,750
Less: Intercompany transactions 1,000,837,339 824,316,713
6,136,287,306 3,193,343,038
Standard Bank Ltd.
31.12.2009 31.12.2008
Taka Taka
12. Deposit and other accounts
Inter-bank deposits (Note: 12.1) 2,198,114,000 7,259,596,546
Other deposits (Note: 12.2) 80,889,015,113 61,300,877,777
83,087,129,113 68,560,474,323
12(a) Consolidated Deposit and other accounts
AB Bank Limited 83,087,129,113 68,560,474,323
AB International Finance Limited - -
83,087,129,113 68,560,474,323
Less: Inter-group transaction 4,500,433 1,484,970
83,082,628,680 68,558,989,353
12.1 Maturity analysis of inter-bank deposits
Repayable – on demand 109,255,000 199,395,333
– within 1 month 1,026,222,812 2,962,463,023
– over 1 month but within 3 months 341,145,678 1,277,953,640
– over 3 months but within 1 year 721,490,510 2,819,784,550
– over 1 year but within 5 years - -
– over 5 years but within 10 years - -
– over 10 years - -
2,198,114,000 7,259,596,546
12.2 Maturity analysis of other deposits
Repayable – on demand - 101,104,667
– within 1 month 9,148,576,139 6,995,814,679
– over 1 month but within 3 months 19,342,150,740 17,850,634,800
– over 3 months but within 1 year 31,096,620,205 31,566,566,760
– over 1 year but within 5 years 19,878,740,477 2,515,790,003
– over 5 years but within 10 years 1,422,927,552 2,270,966,869
– over 10 years - -
80,889,015,113 61,300,877,777
13. Other liabilities
Accumulated provision against loans and advances (Note 13.1) 1,252,506,463 1,349,205,714
Accrued profit on investment - Islami banking branch 133,345,887 74,364,030
Provision for current tax (Note: 13.2) 4,254,236,613 2,556,729,929
Deferred tax liabilities (Note: 13.3) 129,739,689 1,616,023
Interest suspense account (Note: 13.4) 301,688,854 326,528,758
Retained revenue with ABBL, Mumbai Branch - 87,621,563
Provision against other assets (Note: 13.5) 228,235,215 167,335,215
Provision for outstanding debit entries in NOSTRO accounts 200,000 200,000
Exchange equalisation account 47,966,966 47,966,966
Accounts payable - Bangladesh Bank 233,310,356 68,171,456
Accrued expenses 36,789,076 11,454,975
Provision for off balance sheet items (Note: 13.6) 380,000,000 280,000,000
Provision against investments (Note: 13.7) 142,553,000 142,553,000
Obligation under finance lease - 565,427
Exchange fluctuation adjustment account - ABBL, Mumbai Branch 71,116,886 48,890,548
Others (*) 401,809,992 414,086,274
7,613,498,999 5,577,289,877
(*) Others includes provision for audit fee, payroll tax, excise duty, income tax and VAT deducted at source, unclaimed
dividend, accounts payable for safe keeping, earnest and security money, etc.
31.12.2009 31.12.2008
Taka Taka
13.1 Accumulated provision against loans and advances
The movement in specific provision for bad and doubtful debts
Balance at 01 January 654,359,957 659,944,862
Fully provided debts written off during the year (-) 538,245,507 96,995,405
Recovery of amounts previously written off (+) - -
Specific provision made for the year (+) 291,000,000 91,410,500
Transfer from general provision (+) 7,900,000 -
Recoveries and provision no longer required (-) - -
Net charge to Profit and Loss Statement (+) - -
(239,345,507) (5,584,905)
Balance at 31 December 415,014,450 654,359,957
Provision made by ABBL, Mumbai Branch 11,896,000 3,845,638
Total provision on classified loans and advances 426,910,450 658,205,595
On unclassified loans
Balance at 01 January 658,106,015 448,050,000
Transfer from provision for other assets (+) - 20,200,000
Recoveries and provision no longer required (-) - -
Transfer (-) 7,900,000
General provision made for the year (+) 145,600,000 189,856,015
137,700,000 210,056,015
Balance at 31 December 795,806,015 658,106,015
Provision made by MBW 28,154,298 28,154,298
Provision made by ABBL, Mumbai Branch 1,635,700 4,739,806
Total provision on un-classified loans and advances 825,596,013 691,000,119
Total provision on loans and advances 1,252,506,463 1,349,205,714
Provision for Required Maintained Excess/(Shortage)
Un-classified loans and advances 749,300,000 825,596,013 76,296,013
Classified loans and advances 414,300,000 426,910,450 12,610,450
1,163,600,000 1,252,506,463 88,906,463
13.2 Provision for current tax
Balance at 01 January 2,459,761,967 1,222,843,244
Add: Provision made during the year 1,714,216,590 1,381,655,684
Less: Adjustment during the year - 144,736,961
Balance at 31 December 4,173,978,557 2,459,761,967
Provision held by ABBL, Mumbai Branch 80,258,056 96,967,962
4,254,236,613 2,556,729,929
13.3 Deferred tax liabilities
Balance at 01 January 1,616,023 83,271,707
Add: Provision made during the year 128,123,666 -
Less: Adjustment during the year - 81,655,684
Balance at 31 December 129,739,689 1,616,023
Tax provision for the year 2008 (assessment year 2009-2010) has been made by the Bank considering necessary taxable
add-backs of income and inadmissible expenditures as per income tax law.
Tax assessments for the financial years 1995, 1996 and 1997 are pending and filed reference applications before the
Hon'ble High Court. Assessment for the financial years 2007 & 2008 has been disputed by the Bank in appeal.
31.12.2009 31.12.2008
Taka Taka
13.4 Interest suspense account
Balance at 01 January 326,528,758 275,385,254
Transfer during the year (+) 121,055,097 82,628,503
Recovery during the year (-) 52,720,000 17,542,000
Write off during the year (-) 93,175,000 13,943,000
Balance at 31 December 301,688,855 326,528,758
13.5 Provision against other assets
Provision for
Prepaid legal expenses 49,700,000 49,700,000
Protested bills 18,033,215 18,033,215
Balance with BCCI, London 120,000 120,000
London Representative Office 1,708,494 1,708,494
Myanmar Representative Office 1,112,430 1,112,430
Others 157,561,076 96,661,076
228,235,215 167,335,215
Provision against other assets was made as per BRPD Circular # 14 dated 25 June 2001 issued by Bangladesh Bank.
13.6 Provision for off balance sheet items
Balance at 01 January 280,000,000 80,000,000
Add: Provision made during the year 100,000,000 200,000,000
Less: Adjustment during the year - -
Balance at 31 December 380,000,000 280,000,000
13.7 Provision against investments
Balance at 01 January 142,553,000 25,400,000
Add: Provision made during the year - 117,153,000
Less: Adjustment during the year - -
Balance at 31 December 142,553,000 142,553,000
13(a) Consolidated Other liabilities
AB Bank Limited 7,613,498,999 5,577,289,877
AB International Finance Limited 39,808,479 43,963,068
7,653,307,477 5,621,252,945
14. Share Capital 2,564,253,200 2,229,785,400
14.1 Authorised Capital
60,000,000 ordinary shares of Taka 100 each 6,000,000,000 3,000,000,000
14.2 Issued, Subscribed and Paid-up Capital
1,500,000 ordinary shares of Taka 100 each issued for cash 150,000,000 150,000,000
2,414,253,200 2,079,785,400
2,564,253,200 2,229,785,400
14.3 Percentage of shareholding
No. of shares % No. of shares %
Sponsors and public 25,495,545 99.43 22,169,889 99.43
Government 146,987 0.57 127,965 0.57
25,642,532 100.00 22,297,854 100.00
As at 31 December 2008Particulars
As at 31 December 2009
24,142,532 ordinary shares of Taka 100 each issued as bonus shares
14.4 Classification of shareholders by holding
2009 2008 2009 2008
53,803 63,332 95.93 97.08
1,980 1,730 3.53 2.65
123 65 0.22 0.10
68 33 0.12 0.05
28 19 0.05 0.03
21 9 0.04 0.01
10 9 0.02 0.01
22 13 0.04 0.02
25 22 0.04 0.03
3 2 0.01 0.00
56,083 65,234 100.00 100.00
14.5 Names of the Directors and their shareholding as at 31 December 2009
As at 31 Dec 2009 As at 31 Dec 2008
5,550 4,827
605,687 526,686
532,050 462,654
161 140
115 100
115 100
115 100
115 100
Mr. Md. Mesbahul Hoque 115 100
115 100
100 -
- -
Mrs. Runa Zakia Shahrood Khan - -
- -
14.6 Capital adequacy ratio
31.12.2009 31.12.2008
Taka Taka
14.6.1 Core capital (Tier I)
Paid-up capital 2,564,253,200 2,229,785,400
Non-repayable share premium account - -
Statutory reserve 3,101,206,092 2,066,121,258
General and other reserve 42,199,200 42,199,200
Retained earnings 3,541,969,135 1,789,769,440
Non-cumulative irredeemable preference share - -
Dividend equalisation account - -
9,249,627,627 6,127,875,298
% of total holding
Mr. Mishaal Kabir
Mr. Syed Afzal Hasan Uddin, Barrister - at -Law
Mr. Md. Anwar Jamil Siddiqui Director
40,001 to 50,000
Mr. Salim Ahmed
Director
Mr. Kaiser A. Chowdhury Ex-officio
Director
Director
Depositor Director
Independent Director
Director
Mr. B. B. Saha Roy
Dr. M. Imtiaz Hossain
501 to 5,000
5,001 to 10,000
10,001 to 20,000
Over 1,000,000
Mr. M. Wahidul Haque
Depositor Director
30,001 to 40,000
100,001 to 1,000,000
Director
Director
Director
Status
Chairman
Mr. Shishir Ranjan Bose, FCA
Mr. Faheemul Huq, Barrister - at -Law
Mr. M. A. Awal
No of Shareholding
Holding
Upto 500
Mr. Feroz Ahmed
Vice-Chairman
No. of holders
20,001 to 30,000
Name of the Director
50,001 to 100,000
In terms of section 13(2) of Banking Companies Act 1991 and Bangladesh Bank BRPD Circulars no. 01, 14, 10, 07, 01, 05
and 03 dated 08 January 1996, 16 November 1996, 25 November 2002, 28 August 2006, 19 February 2007, 14 May 2007
and 12 March 2008 respectively, required capital of the Bank at the close of business on 31 December 2009 is Taka
7,833,137,517 as against available core capital of Taka 9,249,627,627 and supplementary capital of Taka 1,540,639,432
that is, a total of Taka 10,790,267,058 thereby showing surplus capital/equity of Taka 2,957,129,541 at that date. Details
are shown below:
31.12.2009 31.12.2008
Taka Taka
14.6.2 Supplementary capital (Tier II)
General provision maintained against unclassified loans 825,596,013 691,000,119
General provision maintained against off-balance sheet items 380,000,000 280,000,000
Assets revaluation reserves 284,062,876 292,505,905
All other preference shares - -
Perpetual subordinated debts - -
Exchange equalisation account 47,966,966 47,966,966
3,013,577 447,865
1,540,639,432 1,311,920,855
A. Total Eligible Capital 10,790,267,058 7,439,796,153
Total assets including off-Balance Sheet items 135,907,882,900 110,127,943,568
Total risk-weighted assets (Annexure E) 78,331,375,173 57,954,363,343
B. Required capital (10% of risk-weighted assets) 7,833,137,517 5,795,436,334
Actual capital maintained
Core capital, Tier-I 9,249,627,627 6,127,875,298
Supplementary capital, Tier II 1,540,639,432 1,311,920,855
10,790,267,059 7,439,796,153
Capital Surplus / (Shortfall) [A-B] 2,957,129,541 1,644,359,819
Capital adequacy ratio 13.78% 12.84%
14.7 Capital requirement
Required Holding Required Holding
Core capital 5.00% 11.81% 5.00% 10.57%
Supplementary capital 1.97% 2.27%
Total Capital 10.00% 13.78% 10.00% 12.84%
14.8 Capital Adequacy Ratio - As per BASEL II
Core capital (Tier I)
Fully Paid-up Capital/Capital Deposited with BB 2,564,253,200
Statutory Reserve 3,101,206,092
Non-repayable share premium account -
General Reserve 42,199,200
Retained earnings 3,541,969,135
Minority interest in Subsidiaries -
Non-Cumulative irredeemable Preferences shares -
Dividend Equalization Account -
9,249,627,627
Deductions from Tier-1 (Core Capital ) :
Book value of Goodwill -
-
Deficit on account of revaluation of investment in AFS category -
Any investment in TFCs of other banks exceeding the prescribed limit -
Other if any -
-
Total Eligible Tier-I Capital 9,249,627,627
As at 31 Dec 2008
Revaluation reserves of HTM Securities (Upto 50% of the revaluation
reserves)
As at 31 Dec 2009
Shortfall in provisions required against classified assets irrespective of any
relaxation allowed
In terms of Bangladesh Bank BRPD Circular no. 09 of 31 December 2008, required capital of the Bank at the close of
business on 31 December 2009 is Taka 9,845,963,770 as against available core capital of Taka 9,249,627,627 and
supplementary capital of Taka 1,668,218,503 that is, a total of Taka 10,917,846,130 thereby showing surplus capital/equity
of Taka 1,071,882,360 at that date. Details are shown below:
Supplementary capital (Tier II)
1,205,596,013
Assets revaluation reserves 284,062,876
All other preference shares
Perpetual subordinated debts
Exchange equalisation account 47,966,966
Revaluation reserves of Securities (Upto 50% of the revaluation reserves) 130,592,648
1,668,218,503
Capital eligible for market risk (Tier-III)
Short-term subordinated debt -
A. Total Eligible Capital 10,917,846,130
Total assets including off-Balance Sheet items 135,907,882,900
Total risk-weighted assets (RWA) 98,459,637,700
B. Total required capital (10% of Total RWA) 9,845,963,770
Capital Surplus / (Shortfall) [A-B] 1,071,882,360
Capital adequacy ratio 11.09%
14.8.1 Market Discipline Disclosures
Quantitative Disclosure
1. Assets
A. Banking Book
1 Cash in hand & Balance with BB 6,285,636,533
2 Money at call 600,000,000
3 Investment (HTM) 6,856,998,552
a. Government 6,667,299,934
b. Qualifying 30,000,000
c. Others 159,698,618
4 Loan & Advances 70,879,933,446
5 a. Classified (SMA, SS, DF and BL) 2,086,168,676
i) SMA 136,999,863
ii) SS 649,062,813
iii) DF 521,036,000
iv) BL 779,070,000
b. Unclassified 68,793,564,769
6 Rated Assets 106,912,312,383
a. Rated Assets 975,600,000
b. Unrated Assets 105,936,712,383
7 Other Assets (including Fixed Assets) 10,214,075,989
Total Banking Book Assets (1+2+3+4+7) 94,836,644,520
Under Pillar-III of the framework, Bank’s “Basel-II Disclosures” as on 31.12.2009 are as under:
General Provision for Unclassified loans & off Balance Sheet (Limited to
1.25% of RWA)
As per Bangladesh Bank guidelines, the Bank has migrated to Basel-II framework as on 31.03.2009 parallel to existing
BRPD Circular No. 10, dated November 25, 2002. From January 01, 2010 Basel II regime will be started and the guidelines
on RBCA (Risk Based Capital Adequacy) will fully come into force with its subsequent supplements/revisions.
B. Trading Book Assets
1 FC held in hand 26,842,144
2 FC held in BB and NOSTRO account 2,539,231,746
3 Investment (Trading) 9,509,593,973
a. Government 3,161,717,597
b. HFT 6,347,876,376
c. AFS -
Total Trading Book Assets (1+2+3) 12,075,667,863
Total Assets (A+B) 106,912,312,383
2. Credit Risk on Banking Book
Quantitative Disclosure
Total Exposures of Credit Risk
1. Funded
• Domestic 70,527,446,112
• Overseas 352,487,333
2. Non-Funded
• Domestic 22,915,484,755
• Overseas 852,276,991
3. Distribution of risk exposure by claims
• Claims on sovereigns and central banks 15,720,888,321
• Claims on other official entities 30,000,000
• Claims on banks and securities firms 3,185,128,748
• Claims on corporate 33,242,365,259
• Claims included in the retail portfolio & small enterprises 16,176,098,333
• Claims secured by residential property 4,797,118,559
• Claims secured by commercial real estate 2,984,596,675
• Other Categories:
– Past due loans/NPL 1,376,164,641
– Off-balance sheet items 5,444,555,659
4. Credit Risk Mitigation
• Claims secured by financial collateral 10,892,859,759
• Net exposure after the application of haircuts. (3,884,870,460)
• Claims secured by eligible Guarantee -
3. Market risk on Trading Book
Quantitative Disclosure
The capital requirements for:
• interest rate risk; 30,767,804
• equity position risk; 1,507,379,708
• foreign exchange risk; and 55,954,625
• Commodity risk -
4. Operational risk
Quantitative Disclosure
The capital requirements for Operational Risk 942,964,133
5. Maintenance of Specific Provision
Quantitative Disclosure
a. Gross Non Performing Assets ( NPAs)
Non Performing Assets ( NPAs) to Outstanding Loans and advances 2.94%
b. Movement of Non Performing Assets ( NPAs)
1. Opening balance 1,884,174,736
2. Additions 1,357,600,000
3. Reductions 1,194,983,138
4. Closing balance 2,046,791,598
Add: Mumbai Branch 39,377,078
2,086,168,676
C) Movement of specific provisions for NPAs
1. Opening balance 654,359,957
2. Provisions made during the period 298,996,156
3. Write-off (538,341,663)
4. Write-back of excess provisions -
5. Closing balance 415,014,450
Add: Mumbai Branch 11,896,000
426,910,450
6. Maintenance of Regulatory Capital
Quantitative Disclosure
Core capital (Tier I)
Fully Paid-up Capital 2,564,253,200
Statutory Reserve 3,101,206,092
Non-repayable share premium account -
General Reserve 42,199,200
Retained earnings 3,405,361,181
Minority interest in Subsidiaries -
Non-Cumulative irredeemable Preferences shares -
Dividend Equalization Account -
9,113,019,673
Deductions from Tier-1 (Core Capital ) :
Book value of Goodwill -
-
Deficit on account of revaluation of investment in AFS category -
Any investment in TFCs of other banks exceeding the prescribed limit -
Other if any -
-
Total Eligible Tier-I Capital 9,113,019,673
Shortfall in provisions required against classified assets irrespective of
any relaxation allowed
Supplementary capital (Tier II)
1,205,596,013
Assets revaluation reserves 284,062,876
All other preference shares -
Perpetual subordinated debts -
Exchange equalisation account 47,966,966
130,592,648
1,668,218,503
Capital eligible for market risk (Tier-III)
Short-term subordinated debt -
A. Total Eligible Capital 10,781,238,176
7. Capital Adequacy
Quantitative Disclosure
A) Amount of Regulatory Capital to meet unforeseen loss
o Amount to meet Credit Risk 7,308,897,500
o Amount to meet Market Risk 1,594,102,137
o Amount to meet Operational Risk 942,964,133
9,845,963,770
B) Additional capital over MCR maintained by the banks 935,274,406
31.12.2009 31.12.2008
15. Statutory reserve Taka Taka
In Bangladesh
Opening balance 1,971,945,858 1,251,821,530
Add: Addition during the year (20% of pre-tax profit) 1,015,481,388 720,124,328
Closing balance 2,987,427,246 1,971,945,858
Outside Bangladesh - ABBL, Mumbai Branch
Opening balance 94,175,400 105,083,920
Add: Addition during the year 15,636,846 7,990,640
Adjustment for Foreign Exchange Rate Fluctuation 3,966,600 (18,899,160)
Closing balance 113,778,846 94,175,400
3,101,206,092 2,066,121,258
16. Other reserve
General reserve (Note: 16.1) 42,199,200 42,199,200
Assets revaluation reserve (Note: 16.2) 568,125,753 585,011,810
Investment revaluation reserve (Note: 16.3) 268,769,552 9,618,239
879,094,505 636,829,248
16.1 General reserve
Opening balance 42,199,200 42,199,200
Add : Addition during the year - -
42,199,200 42,199,200
Revaluation reserves of Securities (Upto 50% of the revaluation
reserves)
General Provision for Unclassified loans & off Balance Sheet (Limited to
1.25% of RWA)
31.12.2009 31.12.2008
16.2 Assets revaluation reserve Taka Taka
Opening balance 585,011,810 598,054,760
Add : Addition during the year - -
Less : Adjustment during the year 16,886,057 13,042,950
568,125,753 585,011,810
16.3 Investment revaluation reserve ( Treasury Bills & Treasury Bonds)
In Bangladesh
Revaluation Reserve for:
Held to Maturity (HTM) (Note: 16.3.1) 6,027,153 895,731
Held for Trading (HFT) (Note: 16.3.2) 255,158,143 1,444,784
261,185,296 2,340,515
Outside Bangladesh
ABBL, Mumbai branch 7,584,256 7,277,724
268,769,552 9,618,239
16.3.1 Revaluation Reserve for Held to Maturity (HTM)
Opening balance 895,731 66,498,696
Add: Addition during the year 6,027,153 895,731
6,922,884 67,394,427
Less: Adjustment during the year 895,731 66,498,696
6,027,153 895,731
16.3.2 Revaluation Reserve for Held for Trading (HFT)
Opening balance 1,444,784 -
Add: Addition during the year 255,158,143 32,862,095
256,602,927 32,862,095
Less: Adjustment during the year 1,444,784 31,417,311
255,158,143 1,444,784
16(a) Consolidated Other reserve
AB Bank Limited 879,094,505 636,829,248
AB International Finance Limited 36,699,556 36,699,560
915,794,061 673,528,809
17. Retained earnings
Opening balance 1,789,769,440 1,695,795,728
Add: Post-tax profit for the year 3,362,556,000 2,300,621,640
Less: Transfer to statutory reserve 1,031,118,234 720,124,328
Cash dividend 334,467,810
Bonus shares issued 334,467,800 1,486,523,600
3,452,271,596 1,789,769,440
Add: Mumbai Branch 89,697,538 -
3,541,969,135 1,789,769,440
Interest income of HTM and HFT securities transferred to Revaluation Reserve Account as per Bangladesh Bank DOS
Circular No. 05 dated 26 May 2008 of which 50% of revaluation reserve for HTM will be treated as Supplementary Capital.
31.12.2009 31.12.2008
17(a) Consolidated Retained earnings Taka Taka
AB Bank Limited 3,541,969,135 1,789,769,440
AB International Finance Limited 97,349,416 58,100,684
3,639,318,550 1,847,870,125
Add: Foreign currency translation gain 211,816 -
3,639,530,366 1,847,870,125
18. Contingent liabilities 28,995,570,517 26,074,330,983
18.1 Letters of guarantee
Directors - -
Government - -
Banks and other financial institutions - -
Others 5,592,203,569 4,783,891,967
5,592,203,569 4,783,891,967
Money for which the Bank is in contingently liable in respect of guarantees
issued favouring:
2009 2008
Taka Taka
19. Profit and loss account
Income:
Interest, discount and similar income 9,989,268,472 7,967,919,523
Dividend income 122,671,920 140,634,046
Fee, commission and brokerage 1,781,781,511 1,386,225,802
Gains less losses arising from investment securities 1,774,426,855 1,374,818,145
Gains less losses arising from dealing in foreign currencies 484,343,634 372,793,369
Other operating income 170,873,499 206,424,306
Gains less losses arising from dealing securities 84,339,185 36,363,961
Income from non-banking assets - -
Profit less losses on interest rate changes - -
14,407,705,076 11,485,179,152
Expenses:
Interest, fee and commission 6,139,114,501 5,332,444,075
Administrative expenses 1,694,996,341 1,344,683,494
Other operating expenses 612,306,896 379,420,244
Depreciation on banking assets 158,891,082 130,243,184
Losses on loans and advances - -
8,605,308,820 7,186,790,997
5,802,396,256 4,298,388,155
20. Interest income
Interest on loans and advances:
Loans and advances 8,761,019,838 6,920,212,197
Bills purchased and discounted 76,617,850 32,522,057
8,837,637,688 6,952,734,253
Interest on:
Calls and placements 189,352,034 206,181,361
Balance with foreign banks 9,464,660 30,601,369
Reverse Repo 9,066,040 161,448,573
Balance with Bangladesh Bank 1,648,786 15,881,657
209,531,520 414,112,960
Profit/(Loss) due to change in interest rate - -
9,047,169,208 7,366,847,213
20(a). Consolidated Interest income
AB Bank Limited 9,047,169,208 7,366,847,213
AB International Finance Limited 64,205,688 1,617,322
9,111,374,896 7,368,464,534
21. Interest paid on deposits, borrowings, etc
Interest on deposits:
Fixed deposits 4,376,449,610 4,011,611,328
Savings deposits 475,581,926 427,619,944
Short-term deposits 529,402,992 240,612,758
Other deposits 511,047,233 321,941,782
5,892,481,762 5,001,785,812
Interest on borrowings:
Local banks, financial institutions including Bangladesh Bank 246,632,739 330,658,262
6,139,114,501 5,332,444,075
2009 2008
Taka Taka
21(a). Consolidated Interest paid on deposits, borrowings, etc
AB Bank Limited 6,139,114,501 5,332,444,075
AB International Finance Limited 7,893,206 15,410,306
6,147,007,707 5,347,854,381
22. Investment income
Capital gain on sale of shares 1,774,426,855 1,374,818,145
Interest on treasury bills 176,030,690 211,671,593
Dividend on shares 122,671,920 140,634,046
Interest on debentures 2,165,625 3,609,375
Interest on treasury bonds 763,846,054 383,472,730
Gain on treasury bills and treasury bonds 84,339,185 36,363,961
Interest on other bonds 56,897 2,318,613
2,923,537,225 2,152,888,463
22(a). Consolidated Investment income
AB Bank Limited 2,923,537,225 2,152,888,463
AB International Finance Limited - -
2,923,537,225 2,152,888,463
23. Commission, exchange and brokerage
Other fees, commission and service charges 1,241,544,525 959,379,390
Commission on letters of credit 438,774,597 348,065,477
Commission on letters of guarantee 101,462,389 78,780,934
Exchange gains less losses arising from dealings in foreign currencies 484,343,634 372,793,369
2,266,125,144 1,759,019,171
23(a). Consolidated Commission, exchange and brokerage
AB Bank Limited 2,266,125,144 1,759,019,171
AB International Finance Limited 16,607,333 60,990,992
2,282,732,477 1,820,010,163
24. Other income
Locker rent, insurance claim and others 10,661,893 11,952,566
Recoveries on loans previously written off 43,203,720 63,229,802
Profit remitted by ABBL, Mumbai Branch - 26,988,675
Recoveries on telex, telephone, fax, etc 41,580,158 19,596,732
Recoveries on courier, postage, stamp, etc 26,710,359 23,739,965
Finance charge from ABBF 48,283,709 50,751,234
Non-operating income (*) 433,660 10,165,333
170,873,499 206,424,306
(*) Non-operating income includes sale of vehicles, old tyres, tubes, newspapers, furniture, fixtures, etc.
24(a). Consolidated Other income
AB Bank Limited 170,873,499 206,424,306
AB International Finance Limited 32,766,651 17,656,339
203,640,150 224,080,645
2009 200825. Salary and allowances Taka Taka
Basic salary, provident fund contribution and all other allowances 1,052,374,231 908,621,180
Festival and incentive bonus 146,857,358 100,054,332
1,199,231,589 1,008,675,512
25(a). Consolidated Salary and allowances
AB Bank Limited 1,199,231,589 1,008,675,512
AB International Finance Limited 19,136,478 20,183,875
1,218,368,066 1,028,859,386
26. Rent, taxes, insurance, electricity, etc
Rent, rates and taxes 145,689,190 107,292,259
Electricity, gas, water, etc 36,790,772 27,101,686
Insurance 47,433,496 39,512,422
229,913,457 173,906,367
26(a). Consolidated Rent, taxes, insurance, electricity, etc
AB Bank Limited 229,913,457 173,906,367
AB International Finance Limited 10,831,815 4,638,042
240,745,272 178,544,409
27. Legal expenses
Legal expenses 3,960,205 4,409,340
27(a). Consolidated Legal expenses
AB Bank Limited 3,960,205 4,409,340
AB International Finance Limited 89,287 188,206
4,049,492 4,597,546
28. Postage, stamp, telecommunication, etc
Telex, fax, internet, wireless link, SWIFT, etc 54,398,476 36,794,710
Telephone 13,586,559 11,131,416
Postage, stamp and shipping 16,392,493 9,178,947
84,377,528 57,105,073
28(a). Consolidated Postage, stamp, telecommunication, etc
AB Bank Limited 84,377,528 57,105,073
AB International Finance Limited 5,639,731 5,304,459
90,017,259 62,409,532
29. Stationery, printing, advertisements, etc
Printing and stationery 68,088,481 44,345,443
Publicity, advertisement, etc 52,474,898 20,643,780
120,563,379 64,989,223
29(a). Consolidated Stationery, printing, advertisements, etc
AB Bank Limited 120,563,379 64,989,223
AB International Finance Limited 313,874 266,715
120,877,254 65,255,938
2009 2008
Taka Taka
30. Directors' fees
Directors' fees 1,031,588 1,499,600
Meeting expenses 1,342,904 879,349
2,374,492 2,378,949
30(a). Consolidated Directors' fees
AB Bank Limited 2,374,492 2,378,949
AB International Finance Limited - -
2,374,492 2,378,949
31. Auditors' fees
Statutory 706,000 365,750
Merchant Banking Wing 419,800 70,000
Others 1,084,162 1,126,350
2,209,962 1,562,100
31(a). Consolidated Auditors' fees
AB Bank Limited 2,209,962 1,562,100
AB International Finance Limited 186,850 177,846
2,396,811 1,739,946
32. Depreciation and repairs of Bank's assets
Depreciation:
Electrical appliances 85,698,934 66,792,722
Leasehold assets 565,427 6,540,914
Furniture and fixtures 9,974,847 8,137,273
Office appliances 3,698,923 2,076,089
Building 5,366,039 5,687,292
Motor vehicles 53,586,912 41,008,895
158,891,082 130,243,184
Repairs:
Motor vehicles 12,351,236 8,132,210
Electrical appliances 16,253,216 7,533,522
Office premises and others 11,274,327 5,784,188
Furniture and fixtures 1,001,898 562,523
Office appliances 3,000,092 2,303,035
43,880,769 24,315,479
202,771,852 154,558,663
32(a). Consolidated Depreciation and repairs of Bank's assets
AB Bank Limited 202,771,852 154,558,663
AB International Finance Limited 657,520 1,076,201
203,429,372 155,634,865
Directors' fees includes fees for attending the meeting of the Board, Executive Committee, Audit Committee and Shariah
Council. Each director was remunerated @ Tk.4,000 per meeting.
2009 2008
Taka Taka
33. Other expenses
Contractual service 86,598,628 69,296,501
Amortization of deferred revenue expenses 76,508,006 58,370,228
Petrol, oil and lubricant 43,916,167 35,470,405
Software expenses 60,356,716 9,556,585
Entertainment 29,365,468 21,082,223
Travelling 23,192,091 35,874,132
Subscription, membership and sponsorship 15,495,988 27,943,497
Training, seminar and workshop 8,590,967 5,223,600
Local conveyance 5,367,946 4,735,828
Professional charges 17,204,663 4,272,120
Books, newspapers and periodicals 1,781,071 882,999
Branch opening expenses 988,551 393,937
Bank Charges 7,681,136 3,709,200
Sundry expenses (*) 235,259,497 102,608,988
612,306,896 379,420,244
(*)
33(a). Consolidated Other expenses
AB Bank Limited 612,306,896 379,420,244
AB International Finance Limited 1,601,553 1,300,294
613,908,448 380,720,539
34. Provision against loans and advances
On un-classified loans 145,600,000 189,856,015
On classified loans 291,000,000 91,410,500
436,600,000 281,266,515
34(a). Consolidated Provision against loans and advances
AB Bank Limited 436,600,000 281,266,515
AB International Finance Limited - -
436,600,000 281,266,515
35. Provisions for diminution in value of investments
In quoted shares - 117,153,000
35(a). Consolidated Provisions for diminution in value of investments
AB Bank Limited - 117,153,000
AB International Finance Limited - -
- 117,153,000
36. Other provision
Provision for off balance sheet items 100,000,000 200,000,000
Provision for Outstanding debit entries in NOSTRO accounts - 200,000
Provision for Other assets 60,900,000 99,147,000
160,900,000 299,347,000
Provision for prepaid legal expenses and protested bills has been made as per Bangladesh Bank BRPD Circular # 14
dated 25 June 2001.
Sundry expenses includes corporate expenses, business promotion, expenses on managers' conferences and annual
general meeting, loss on sale of assets, non-operating expenses and other miscellaneous expenses.
2009 2008
36(a). Consolidated Other provision Taka Taka
AB Bank Limited 160,900,000 299,347,000
AB International Finance Limited 1,519,861 -
162,419,861 299,347,000
37. Appropriations
Retained earnings - brought forward 1,789,769,440 1,695,795,728
Less: Adjustment for prior year - -
Add: Post-tax profit for the year 3,362,556,000 2,300,621,640
5,152,325,440 3,996,417,368
Less: Bonus - 2008
Cash dividend 334,467,810 -
Bonus shares issued 334,467,800 1,486,523,600
Profit available for distribution 4,483,389,830 2,509,893,768
Transferred to:
Statutory reserve 1,031,118,234 720,124,328
Retained earnings 3,452,271,596 1,789,769,440
38. Earnings per share
Profit after taxation 3,362,556,000 2,300,621,640 Number of ordinary shares outstanding 25,642,532 25,642,532 Earnings per share 131.13 89.72
38(a). Consolidated Earnings per share
Consolidated Profit after taxation 3,417,185,111 2,332,340,348 Number of ordinary shares outstanding 25,642,532 25,642,532 Earnings per share 133.26 90.96
39. Receipts from other operating activities
Interest on treasury bills, bonds, debenture and others 2,800,865,305 2,012,254,416
Exchange earnings 484,343,634 372,793,369
Recoveries on telex, telephone, fax, etc. 41,580,158 19,596,732
Recoveries on courier, postage, stamp, etc. 26,710,359 23,739,965
Finance charge from ABBF 48,283,709 50,751,234
Non-operating income 433,660 10,165,333
Rent from Bank's property
Others 10,661,893 11,952,566
3,412,878,717 2,501,253,614
39(a). Consolidated Receipts from other operating activities
AB Bank Limited 3,412,878,717 2,501,253,614
AB International Finance Limited 32,766,651 17,656,339
3,445,645,368 2,518,909,953
Earnings per share (EPS) and Consolidated EPS has been computed by dividing the basic earnings by the number of
ordinary shares outstanding as of 31 December 2009 in terms of Bangladesh Accounting Standard (BAS)-33. Accordingly
to BAS-33, EPS for the year 2008 was restated for the issues of bonus share in 2009.
2009 2008
Taka Taka
40. Payments for other operating activities
Other expenses 612,306,896 379,420,244
Rent, taxes, insurance, electricity, etc 229,913,457 173,906,367
Postage, stamps, telecommunication, etc 84,377,528 57,105,073
Repairs of Bank's assets 43,880,769 24,315,479
Legal expenses 3,960,205 4,409,340
Directors' fees 2,374,492 2,378,949
976,813,347 641,535,452
40(a). Consolidated Receipts from other operating activities
AB Bank Limited 976,813,347 641,535,452
AB International Finance Limited 1,601,553 1,300,294
978,414,900 642,835,747
41. Increase/decrease in other assets
Inter-branch adjustment 92,423,134 651,672,022
Arab Bangladesh Bank Foundation 300,051,122 300,051,122
Advance corporate income tax 3,158,776,307 1,828,324,016
Preliminary, formation, organizational, renovation,
development and prepaid expenses 1,804,905,746 1,121,352,578
Exchange for clearing 870,737,423 471,174,214
Accounts receivable 998,581,954 1,028,589,408
Interest accrued on investment but not collected,
commission and brokerage receivable on shares
and debentures, and other income receivables 367,047,393 365,974,878
Security deposits 65,935,812 66,190,426
Advance rent and advertisement 69,971,185 50,198,408
Stationery, stamps, printing materials, etc 39,479,313 28,787,425
Investment in AB International Finance Ltd., Hong Kong 5,203,944 5,203,944
7,773,113,332 5,917,518,443
Less : Payment of corporate income tax 1,330,452,291 896,758,330
Adjustments for advances - 45,897,223
1,330,452,291 942,655,552
6,442,661,042 4,974,862,891
Net Increase 1,467,798,151 500,714,319
41(a). Consolidated Increase/decrease in other assets
AB Bank Limited 1,467,798,151 500,714,319
AB International Finance Limited 7,221,309 7,128,389
1,475,019,460 507,842,708
Less: Inter-company transaction 5,203,944 5,203,944
Net Increase 1,469,815,516 502,638,763
2009 2008
42. Increase/decrease in other liabilities Taka Taka
Accumulated provision against loans and advances 1,252,506,463 1,349,205,714
Provision for current tax 4,254,236,613 2,556,729,929
Deferred tax liabilities 129,739,689 1,616,023
Interest suspense account 301,688,854 326,528,758
Exchange fluctuation adjustment account -ABBL, Mumbai Branch 71,116,886 48,890,548
Retained revenue - ABBL, Mumbai Branch - 87,621,563
Accounts payable - Bangladesh Bank 233,310,356 68,171,456
Exchange equalization account 47,966,966 47,966,966
Provision against other assets 228,235,215 167,335,215
Obligation under finance lease - 565,427
Accrued expenses 36,789,076 11,454,975
Provision against investments 142,553,000 142,553,000
Provision against off balance sheet items 380,000,000 280,000,000
Accrued profit on investment - Islami Banking Branch 133,345,887 74,364,030
Provision for outstanding debit entries in NOSTRO accounts 200,000 200,000
Others 401,809,992 414,086,274
7,613,498,999 5,577,289,877
Less: Adjustment for provision & Others 5,769,086,729 4,543,399,212
1,844,412,269 1,033,890,664
Net Increase/(decrease) 810,521,605 20,621,206
42(a). Consolidated Increase/decrease in other liabilities
AB Bank Limited 810,521,605 276,197,066
AB International Finance Limited 39,808,479 44,146,264
Net Increase 850,330,083 320,343,330
43. Highlights of the overall activities of the Bank
2009 2008
Taka Taka
1 Paid-up capital 2,564,253,200 2,229,785,400 15.00
2 Total capital 10,790,267,058 7,439,796,153 45.03
3 Capital surplus 2,957,129,541 1,644,359,819 79.83
4 Total assets 106,912,312,383 84,053,612,585 27.20
5 Total deposits 83,087,129,113 68,560,474,323 21.19
6 Total loans and advances 70,879,933,446 56,708,771,906 24.99
7 Total contingent liabilities and commitments 28,995,570,517 26,074,330,983 11.20
8 Credit-deposit ratio 85.31 82.71 2.59
9 Ratio of classified loans against total loans and advances 2.75 2.99 (0.24)
10 Profit after tax and provision 3,362,556,000 2,300,621,640 46.16
11 Loans classified during the year 1,358,700,000 506,000,000 168.52
12 Provision kept against classified loans 426,910,450 658,205,595 (35.14)
13 Provision surplus/ (deficit) 88,906,463 81,600,219 8.95
14 Cost of fund 10.31% 11.09% -0.78%
15 Interest earning assets 87,068,323,061 68,580,491,857 26.96
16 Non-interest earning assets 19,843,989,322 15,473,120,728 28.25
17 Return on investments (ROI) 21.06% 23.89% -2.83%
18 Return on assets (ROA) 3.52% 3.17% 0.36%
19 Income from investments 2,923,537,225 2,152,888,463 35.80
20 Earnings per share 131.13 89.72 46.16
21 Net income per share 131.13 89.72 46.16
22 Price-earnings ratio (Times) 8.97 9.16 (0.19)
44.
Currency Equivalent BDT
British Pound Sterling GBP 1.00 110.1133
European Currency EURO 1.00 99.3700
Indian Rupee INR 1.00 01.4870
Japanese Yen JPY 1.00 00.7525
US Dollar USD 1.00 69.2667
Sl # Particulars
29 April 2010
Dhaka,
Change in %
Abbreviation and unit
Assets and liabilities as at 31 December 2009 denominated in foreign currencies have been converted to local
currency Bangladesh Taka (BDT) at the following exchange rates:
AB Bank Limited
Balance with Banks outside Bangladesh
Amounts in
foreign
currency
Conver-
sion
rate
Equivalent
amounts in
Taka
Amounts in
foreign currency
Conversion
rate
Equivalent
amounts in
Taka
The Bank of Tokyo Mitsubishi Ltd. Tokyo YEN 35,433,518 0.753 26,663,723 6,619,629 0.761 5,034,227
HSBC Plc London UKP 186,723 110.113 20,560,658 - 99.638 -
Lloyds TSB Bank Plc London UKP 34,814 110.113 3,833,487 50,726 99.638 5,054,192
HSBC Mumbai ACUD 173,006 69.267 11,983,527 3,006 68.920 207,145
JP Morgan Chase Bank New York USD 242,984 69.267 16,830,732 - 68.920 -
Sonali Bank Kolkata ACUD 100,592 69.267 6,967,668 36,276 68.920 2,500,113
Myanmar Economic Bank Yangon USD 410 69.267 28,399 410 68.920 28,256
Citibank NA New York USD 4,812,268 69.267 333,329,929 365,553 68.920 25,193,940
Hatton National Bank Ltd. Colombo ACUD 23,771 69.267 1,646,518 327 68.920 22,533
Commerz Bank AG Frankfurt USD 19,962 69.267 1,382,670 191,413 68.920 13,192,163
State Bank of India Kolkata ACUD 15,725 69.267 1,089,241 15,725 68.920 1,083,788
NIB Bank Ltd. Karachi ACUD 149,723 69.267 10,370,802 37,429 68.920 2,579,592
Lloyds TSB Bank Plc London USD 25,198 69.267 1,745,377 62,354 68.920 4,297,465
Mashreq Bank Psc New York USD 148,982 69.267 10,319,507 171,304 68.920 11,806,292
Nepal Bangladesh Bank Ltd. Katmandu ACUD 62,772 69.267 4,347,992 27,077 68.920 1,866,129
Bank of Bhutan Phuentsholing ACUD 69,275 69.267 4,798,433 45,042 68.920 3,104,276
HSBC Plc London USD 5,143 69.267 356,239 - 68.920 -
BCCI London USD 1,696 69.267 117,452 1,696 68.920 116,864
Wachovia Bank New York USD 451,811 69.267 31,295,435 14,603 68.920 1,006,416
American Express Bank Ltd. New York USD 69.267 - - 68.920 -
Habib American Bank New York USD 231,911 69.267 16,063,722 319,354 68.920 22,009,910
Commerz Bank AG Frankfurt EURO 447,473 99.370 44,465,379 314,042 96.295 30,240,693
Hypovereins Bank Humburgh EURO 91,500 99.370 9,092,336 33,776 96.295 3,252,465
HSBC Karachi ACUD 69.267 - 10,055 68.920 693,017
National Commercial Bank Ltd Jeddah USD 162,455 69.267 11,252,756 49,985 68.920 3,444,965
Habib Metro Bank Karachi ACUD 9,600 69.267 664,960 - - -
U.B.A.F Banques ACUD 19,975 69.267 1,383,602 - - -
Habib Bank AG Abudabi AED 36,500 18.858 688,310 - - -
Reserve Bank of India Mumbai INR 17,539,626 1.487 26,081,424 15,764,093 1.427 22,493,783
HDFC Bank Mumbai INR 46,207,985 1.487 68,711,274 52,850,311 1.427 75,412,109
Central Bank of India Mumbai INR 186,102 1.487 276,734 187,842 1.427 268,032
Commerz Bank AG (Euro) Mumbai INR 15,968 1.487 23,744 1,779,031 1.427 2,538,499
HSBC (Euro) Mumbai INR 305,533 1.487 454,327 2,220,644 1.427 3,168,637
HSBC (GBP) Mumbai INR 1,266,562 1.487 1,883,378 15,562,460 1.427 22,206,075
HSBC (USD) Mumbai INR 232,903,807 1.487 346,327,961 111,746,984 1.427 159,451,771
JP Morgan Chase Bank Mumbai INR 3,857,227 1.487 5,735,697 24,713,325 1.427 35,263,444
HDFC Bank Mumbai INR 160,000,000 1.487 237,920,000 20,000,000 1.427 28,538,000
AB International Finance Ltd. Hong Kong USD 16,223,000 69.267 1,123,713,674 11,908,000 68.920 820,699,359
2,382,407,068 1,306,774,151
Annexure - A
Name of the bank
As at 31 December 2009 As at 31 December 2008
Name of
currency Location
Annexure - B
Number of
shares
Market price
per share/
Taka
Total market
price/
Taka
Cost per Share Total cost/
Taka
94,236 333.75 31,451,265 314.64 29,650,302 226,703 3,190.00 723,182,570 2,151.22 487,688,713
International Finance Investment and Commerce Bank Ltd. 582,205 920.25 535,773,783 211.87 123,351,866 Prime Life Insurance Company Ltd. 2,400 1,966.50 4,719,600 1,301.07 3,122,560 LankaBangla Finance Limited 84,000 313.80 26,359,200 256.49 21,544,750
8,520 3,703.00 31,549,560 2,962.54 25,240,815 63,250 1,860.25 117,660,813 1,542.49 97,562,794
Green Delta Insurance Company Ltd. 2,000 1,669.75 3,339,500 1,142.53 2,285,067 National Life Insurance Company Ltd. 10,240 3,708.00 37,969,920 3,124.84 31,998,396 Meghna Life Insurance Company Ltd. 3,200 1,953.75 6,252,000 1,529.26 4,893,627 Fareast Islami Life Insurance Company Ltd. 50,000 2,599.50 129,975,000 2,466.65 123,332,703 Delta Life Insurance Company Ltd. 35 14,350.00 502,250 13,310.00 465,850 Sandhani Life Insurance Company Ltd. 1,050 2,036.75 2,138,588 1,797.00 1,886,850
62,850 1,211.00 76,111,350 1,353.18 85,047,538 1,789,900 454.40 813,330,560 445.93 798,168,576
450,000 620.20 279,090,000 493.23 221,954,200 2,000 2,399.25 4,798,500 1,103.77 2,207,535
2,002,000 723.25 1,447,946,500 603.23 1,207,665,683 4,600,000 81.40 374,440,000 76.15 350,304,840 1,146,360 155.80 178,602,888 138.13 158,348,355
45,375 2,876.25 130,509,844 2,765.41 125,480,450 1,145,626 505.00 578,541,130 501.51 574,538,061
23,000 443.60 10,202,800 499.65 11,492,038 77,560 2,583.25 200,356,870 3,495.74 271,129,478 4,385 2,793.00 12,247,305 2,866.37 12,569,044 2,000 946.25 1,892,500 830.25 1,660,500
275,250 1,021.50 281,167,875 657.43 180,957,890 Usmania Glass Sheet Factory Ltd. 3,295 2,355.50 7,761,373 3,510.47 11,567,005
1,250,000 37.90 47,375,000 55.48 69,355,700 2,100,000 686.50 1,441,650,000 624.95 1,312,405,195
7,536,898,542 6,347,876,377
Shares (unquoted)
Number of
shares
Book
Value/Cost/Taka
10 10,000,000
50,000 50,000,000
7,140,000 71,400,000
227,700 10,000,000
141,400,000
44 Industrial and Infrastructure Development Finance Company Ltd.
Particulars Face value/
Taka
1,000,000
1,000
IDLC Finance Limited
Summit Power
Jamuna Oil
Padma Oil
AB Bank Limited
Investment in Shares
As at 31 December 2009
Shares (quoted)
Particulars
Southeast Bank Ltd.
10
United Commercial Bank Ltd.
Powergrid Company Ltd.
Bextex Ltd.
Square Pharmaceuticals Ltd.
Aramit limited
Lafarge Surma Cement Ltd.
ICB
Prime Finance Limited
Beximco Pharma Ltd.
Cash Link Bangladesh Ltd.
Titas Gas
Central Depository Bangladesh Ltd.
Apex Adelchi Footwear Ltd.
Singer BD Ltd
BSRM Steel
S Alam Coll Rolled M.
Grameen M.F-2
Everest Power Co. Ltd.
Annexure - C
Cost
Balance at 01 January 2009 1,900,594,080 178,652,199 48,633,015 595,748,777 265,058,436 8,020,074 2,996,706,581
Addition during the year 10,155,820 39,799,215 7,864,995 138,448,535 52,432,539 - 248,701,104
Less : Disposal /Adjustment during the year** 20,664,455 88,868,717 74,496 141,218,304 1,043,835 - 251,869,807
At 31 December 2009 1,890,085,445 129,582,697 56,423,514 592,979,008 316,447,140 8,020,074 2,993,537,878
Accumulated Depreciation
Balance at 01 January 2009 16,428,942 90,643,789 31,180,484 309,379,989 96,968,496 7,454,647 552,056,347
Charged during the year 5,366,039 9,974,847 3,698,923 85,698,934 53,586,912 565,427 158,891,082
Less : Disposal /Adjustment during the year** 1,063,433 55,758,178 4,461,164 96,168,460 920,975 - 158,372,208
At 31 December 2009 20,731,548 44,860,458 30,418,244 298,910,463 149,634,434 8,020,074 552,575,221
Net Book Value as on 31 December 2009 1,869,353,897 84,722,239 26,005,270 294,068,545 166,812,706 - 2,440,962,657
Net Book Value as on 31 December 2008 1,884,165,138 88,008,410 17,452,531 286,368,788 168,089,940 565,427 2,444,650,234
Office AppliancesElectrical
AppliancesMotor Vehicles Leasehold Assets
** Disposal/Adjustments includes some fixed assets transferred to Deferred Revenue Expenses and Interhead transferred as per Auditor's Certification and actual disposal during the year.
AB Bank Limited
Schedule of Fixed Assets
As on 31 December 2009
(Amount in Taka)
Particulars Land and BuildingFurniture and
FixturesTotal
Annexure - D
Amounts in
foreign
currency
Conversion
rate
Equivalent
amounts in
Taka
Amounts in
foreign
currency
Conversion
rate
Equivalent
amounts in
Taka
HSBC UK UKP - - - 45,517.87 99.64 4,535,291
HSBC UK USD 257,732 69.27 17,852,269 4,553.01 68.92 313,793
HSBC Karachi USD 21,447 69.27 1,485,567 - - -
JP Morgan Chase Bank New York USD - - - 2,362,337 68.92 162,812,278
American Express Bank Ltd. New York USD - - - 630,232.56 68.92 43,435,628
HSBC New York USD - - - 834,187 68.9200 57,492,167
19,337,836 268,589,159
AB Bank Limited
Borrowings from other banks, financial institutions and agents-outside Bangladesh
Name of the bank
As at 31 December 2009 As at 31 December 2008
CurrencyLocation
Annexure E
Cash-in-Hand and at Bank (except banks abroad) 6,282,925,833 -
Money at Call and Short Notice 600,000,000 120,000,000
Foreign Currency Balances Held 2,565,873,890 -
Export and Other Foreign Bills 560,710,117 280,355,059
Foreign Investments 5,203,945 2,601,972
Import and Inland Bills 586,671,134 586,671,134
Advances 63,230,902,890 63,230,902,890
Investments (as per book value) 16,155,350,225 4,660,450,473
Head Office and Inter-Branches adjustments 92,423,134 -
Other Assets including Contingent Assets 22,251,942,207 9,450,393,644
112,332,003,375 78,331,375,173
AB Bank Limited
Particulars
Detail of Risk Weighted Assets
As on 31 December 2009
Amount Risk weight Assets
(Tk.)
Annexure F- 1/2
31.12.2009 31.12.2008
INR INR
369,822,602 369,822,602
173,484,233 151,421,516
368,222,891 248,862,698
Borrowings - -
17,574,970 7,901,296
929,104,697 778,008,112
19,806,043 18,211,672
446,246,246 250,936,864
Investments 129,060,100 101,447,850
235,940,237 312,308,936
38,606,654 13,144,692
59,445,416 81,958,098
929,104,697 778,008,112
Fixed Assets
Assets
Cash and Balances with RBI
Balance with Banks and Money at call short notice
Advances
Capital
Reserves & Surplus
Deposits
Other Liabilities & Provisions
Capital & Liabilities
Other Assets
Total
AB Bank Limited (Mumbai Branch)
Balance Sheet
As at 31 December 2009
Total
Annexure F- 2/2
2009 2008
INR INR
Income
Interest earned 34,851,915 43,340,340
Other Income 113,495,734 74,672,332
Total 148,347,649 118,012,672
Expenditure
Interest expended 5,692,332 6,625,988
Operating Expenses 56,919,396 40,410,260
Provision & Contingencies 43,673,204 -
Operating Profit 106,284,932 47,036,248
For the year ended 31 December 2009
AB Bank Limited (Mumbai Branch)
Profit and Loss Account
Annexure G 1/2
31.12.2009 31.12.2008
Taka Taka
Fixed Assets - at cost less depreciation 4,397,779 3,797,373
Intangible Assets 969,647 71,904
Current Assets
Loan to clients 6,718,925,072 5,143,846,031
Advances and receivables 1,044,292,807 358,688,502
Bank balances 4,886,952 24,400,630
Total Current Assets 7,768,104,831 5,526,935,163
Less: Current Liabilities and Provisions
Accruals and provisions 306,771,404 191,717,915
Contribution from clients 164,828,062 69,617,048
7,206,824,881 5,191,712,525
- 28,154,298
Total Current Liabilities 7,678,424,347 5,481,201,786
Net Current Assets 89,680,484 45,733,377
Net Assets 95,047,910 49,602,654
Financed by:
Equity Fund 20,000,000 20,000,000
Accumulated Profit 75,047,910 29,602,654
95,047,910 49,602,654
General provision on outstanding loan
AB Bank Limited (Merchant Banking Wing)
Balance Sheet
As at 31 December 2009
AB Bank general account
Annexure G 2/2
2009 2008
Taka Taka
INCOME (A)
Interest income 947,705,351 649,619,236
Management fee 207,996,009 154,463,223
Transaction/Settlement fee 324,305,499 175,197,199
Banker to the issue fees 55,898 1,035,526 Other income 5,231,000 110,000
1,485,293,757 980,425,184
EXPENDITURE (B)
Salary and allowances 7,094,356 5,347,808
Other administrative expenses 50,265,441 22,474,201
Interest expenses 645,753,402 521,529,412
Depreciation 1,448,974 1,287,030
Other expenses 240,052 137,488
704,802,225 550,775,939
Net profit for the year (C=A-B) 780,491,532 429,649,245
Accumulated profit, brought forward 29,602,654 92,802,152
810,094,186 522,451,397
Profit transferred to Head Office (735,046,276) (492,848,743)
Accumulated profit, carried forward to Balance Sheet 75,047,910 29,602,654
AB Bank Limited (Merchant Banking Wing)
Profit and Loss Account
For the year ended 31 December 2009
Annexure H 1/2
As at 31 December 2009
31.12.2009 31.12.2008Taka Taka
63,493,496 4,043,940
3,493,496 4,043,940
60,000,000 -
1,001,599,179 901,243,054
1,001,599,179 901,243,054
- -
-
- -
- -
- -
1,756,564,091 1,083,749,668
1,743,233,328 1,071,507,612
13,330,763 12,242,056
13,250,170 15,359,863
21,310,564 21,879,468
8,060,394 6,519,605
403,282,192 2,215,313,400
- -
3,238,189,128 4,219,709,924
1,007,043,594 904,753,879
2,086,830,927 3,234,826,977
1,590,492,950 2,814,974,663
- -
414,648,813 396,077,102
Al-Wadeeah Current and Other Deposit Accounts 76,249,923 16,760,178
5,439,240 7,015,034
144,314,608 80,129,067
Deffered Tax Liabilities/(Assets)
3,238,189,128 4,219,709,924
- -
- -
- -
- -
- -
- -
3,238,189,128 4,219,709,924
ABBL General Account
Balance Sheet
Islami Banking Branch
AB Bank Limited
Total Liabilities
Capital and Shareholders' Equity:
Paid up Capital
Other Liabilities
Mudaraba Savings Deposits
Mudaraba Term Deposits
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity
Statutory Reserve
Other Reserves
Retained Earnings
Deposits and Other Accounts
Other Mudaraba Deposits
Bills Payable
LIABILITIES AND CAPITAL
Liabilities:
Placement from banks & other financial institutions
Premises and Fixed Assets (Cost)
Non-Banking Assets
Accumulated Depreciation
Other Assets:
Total Assets
Investments
General Investments etc.
Bills Purchased & Discounted
Fixed Assets including Premises
In Bangladesh
Outside Bangladesh
Placement with other Banks & Financial Institutions
Investment in shares & other financial institutions
Government
Others
PROPERTY AND ASSETS
Cash in hand
Cash in Hand (Including foreign currencies)
Balance with Bangladesh Bank and its Agent Banks (Incl. FC)
Balance with Other Banks and Financial Institutions:
Annexure H- 2/2
2009 2008
Taka Taka
OPERATING INCOME
Investment income 592,942,205 489,459,742
Profit paid on deposits (397,909,211) (350,620,368)
Net Investment income 195,032,994 138,839,375
Income from Investments in shares/Securities - -
Commission, exchange and brokerage 17,046,978 8,297,899
Other operating income 1,337,572 759,559
Total operating income 213,417,544 147,896,833
Operating Expenses
Salaries and allowances 13,346,697 10,468,406
Rent, Taxes, Insurance, Electricity etc. 619,668 477,492
Legal expenses - -
Postage, stamps, telecommunication etc. 311,736 282,363
Stationeries, printing and advertisement etc. 439,643 543,979
Directors' Fees & Expenses - -
Shariah Supervisory Committee's Fees & Expenses 111,588 133,527
Auditors Fees - 209,000
Charges on lnvestment Losses - -
Depreciation and repair to bank's assets 2,312,650 2,164,001
Zakat Expenses
Other expenses 3,937,146 3,552,275
Total operating expenses 21,079,126 17,831,043
Profit / (Loss) before provisions 192,338,417 130,065,790
AB Bank Limited
Profit and Loss Account
For the year ended 31 December 2009
Islami Banking Branch
Annexure I
AB Bank Limited
Islami Banking Branch Distribution of Profit under Islami Banking Operation
Profit and loss of Islami Banking Branch is calculated annually as at 31 December in every year. 65% to 70% of investment income is distributed among the different types of Mudaraba depositors according to the weightage and the remaining portion is retained by the Bank to meet administrative expenses and investment loss offsetting reserve. Provisional profit is applied to the different types of depositors at the rates decided by the Bank from time to time taking into consideration of the industry trend and that of the rates of other Islamic banks in the country.
In the year 2009 final profit has been paid to the depositors as per following weightage and rates:
Types of Deposit Weightage Final Rate of Profit (%)
1. Mudaraba Savings Deposits 2. Mudaraba Short Term Deposits 3. Mudaraba Term Deposits
36 Months 24 Months 12 Months 6 Months 3 Months 1 Months
4. Mudaraba Probable Millionaire Scheme 5. Mudaraba Quarterly Profit Paying
Scheme 6. Mudaraba Hajj Savings Scheme 7. Mudaraba Deposit Pension Scheme
0.2500 to 0.5000
0.3334 to 0.4200
1.0000 to 1.0208 0.9167 to 1.0208 0.9583 to 1.0458 0.7917 to 1.0000 0.9167 to 1.0800 0.9600 to 1.0833
1.0000
1.0000
1.0000
1.0000
3.08 to 6.17
4.11 to 5.14
12.34 to 12.59 11.31 to 12.59 8.73 to 12.90 5.14 to 13.08 4.31 to 13.33 6.66 to 12.33
12.34
12.34
12.34
12.34
A competent Shariah Council consisting of Islamic scholars, Ulema, Fukaha and Islamic bankers headed by Mr. Shah Abdul Hannan, a prominent Islamic scholar and former Secretary, Government of Bangladesh guides the Islamic banking operations of the Bank. During the year 2009, Shariah Council met in 3 (three) meetings along with 2 (two) meetings of it’s Standing Committee and reviewed different operational issues. The Council also audited the branch through it’s Muraquib and reviewed the audit report in it’s regular meeting. Shariah Council observed that both the officials and clients of the branch became more cautious about the compliance of Shariah Principles.
Annexure - J
2009 2008
Taka Taka
Operating Revenue
Commission, exchange and brokerage 1,199,202 24,824
Total Operating Revenue 1,199,202 24,824
Salaries and allowances 715,296 486,479
Rent, taxes, insurance, etc.(Licence Renewal) 15,000 10,000
Audit fees 10,450 - Other expenses-CDBL Charges 98,832 6,920
Total operating expenses 839,578 503,399
Net Profit / (Loss) 359,624 (478,575)
AB Bank Limited (Custodian Wing)
Profit and Loss Account
For the year ended 31 December 2009
Annexure K -1/2
31.12.2009 31.12.2008
Taka Taka
I. Sources of Funds
Shareholders funds
Capital 20,000,000 20,000,000
Reserve & Surplus 232,963,742 89,183,785
Total 252,963,742 109,183,785
II. Application of Funds
Fixed Assets less accumulated depreciation 16,694,718 12,725,017
Investments 232,176,920 232,176,920
248,871,638 244,901,937
Current Assets, Loans and Advances:
Cash in hand & Bank 520,302,172 481,334,846
Other current assets 829,731,302 589,621,208
Advances 36,599,191 22,293,379
1,386,632,663 1,093,249,433
Less: Current Liabilities and Provisions:
Liabilities 1,319,960,425 1,183,269,873
Provisions 2,202,354 9,534,481
Provision for Tax 60,377,780 361,163,231
1,382,540,559 1,228,967,585
Net Current Assets 4,092,104 (135,718,152)
Total 252,963,742 109,183,785
As at 31 December 2009
Arab Bangladesh Bank Foundation
Balance Sheet
Annexure K -2/2
2009 2008
Taka Taka
Income 318,874,143 204,375,333
Brokerage Commission Less Howla & Laga charges 211,615,288 125,271,182
Interest Income 82,400,464 72,967,000
Other Operating Income 24,858,391 6,137,151
Less: Operating & Other Expenses 125,062,739 105,969,447
Operating Expenses 41,925,130 29,425,424
Finance Charge 79,930,105 74,332,049
Depreciation on Fixed Assets 3,207,504 2,211,974
Profit before Tax 193,811,404 98,405,886
Provision for Taxation :
Current Tax 49,489,502 24,830,400
Deferred Tax 117,588 198,750
Profit after tax 144,204,314 73,376,736
Arab Bangladesh Bank Foundation
Profit & Loss Account
For the period ended 31 December 2009
Annexure L- 1/4
31.12.2009 31.12.2008
HK$ HK$
NON-CURRENT ASSETS
Property, plant and equipment 8,277 12,453
CURRENT ASSETS
Discounted bills receivable 132,480,583 106,659,329
Deposits, prepayments and other receivable 250,927 256,821
Cash at banks and in hand 625,997 932,288
133,357,507 107,848,438
CURRENT LIABILITIES
Accrued liabilities and other payables 4,652,528 4,397,932
Deferred interest income 1,245,616 1,030,510
Provision for long service payments 391,279 220,462
Due to ultimate holding company 112,049,500 92,287,000
Tax payable 428,544 33,477
118,767,467 97,969,381
NET CURRENT ASSETS 14,590,040 9,879,057
14,598,317 9,891,510
Financed by
SHARE CAPITAL 1,000,000 1,000,000
RESERVES 13,598,317 8,891,510
14,598,317 9,891,510
AB International Finance Limited
Balance Sheet
As at 31 December 2009
Annexure L- 2/4
2009 2008
HK$ HK$
INTEREST INCOME 7,071,963 5,454,028
INTEREST EXPENSES (887,117) (1,779,207)
NET INTEREST INCOME 6,184,846 3,674,821
OTHER OPERATING INCOME 3,977,131 3,279,154
TOTAL OPERATING INCOME 10,161,977 6,953,975
Staff costs (2,150,746) (1,559,655)
Depreciation (6,775) (64,432)
Provision for long service payments (170,817) 46,156
Other operating expenses (2,164,667) (2,124,242)
TOTAL OPERATING EXPENSES (4,493,005) (3,702,173)
PROFIT BEFORE TAXATION 5,668,972 3,251,802
TAXATION (962,165) (508,621)
PROFIT FOR THE YEAR 4,706,807 2,743,181
OTHER COMPREHENSIVE INCOME FOR THE YEAR - -
TOTAL COMPREHENSIVE INCOME FOR THE YEAR 4,706,807 2,743,181
AB International Finance Limited
Comprehensive Income Statement
For the year ended 31 December 2009
Annexure L- 3/4
2009 2008
HK$ HK$
CASH GENERATED FROM OPERATIONS 263,300 1,398,160
Hong Kong profits tax paid (567,098) (630,416)
NET CASH (USED IN)/GENERATED FROM
OPERATING ACTIVITIES (303,798) 767,744
INVESTING ACTIVITIES
Interest received 106 2,448
Purchase of fixed assets (2,599) (18,588)
NET CASH USED IN INVESTING ACTIVITIES (2,493) (16,140)
NET (DECREASE)/INCREASE IN CASH AND CASH
EQUIVALENTS (306,291) 751,604
CASH AND CASH EQUIVALENTS
AT THE BEGINNING OF THE YEAR 932,288 180,684
CASH AND CASH EQUIVALENTS
AT THE END OF THE YEAR 625,997 932,288
ANALYSIS OF THE BALANCES OF CASH AND
CASH EQUIVALENTS
Cash and bank balances 625,997 932,288
AB INTERNATIONAL FINANCE LIMITED
NOTES TO CASH FLOW STATEMENT
FOR THE YEAR ENDED 31ST DECEMBER 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before taxation 5,668,972 3,251,802
Adjustments for :
Depreciation 6,775 64,432
Bank interest income (106) (2,448)
Provision for long service payments 170,817 (46,156)
OPERATING PROFIT BEFORE CHANGES IN
WORKING CAPITAL 5,846,458 3,267,630
Increase in discounted bills receivable (25,821,254) (39,741,784)
Decrease/(Increase) in deposits, prepayments and other receivable 5,894 (6,432)
Increase in accrued liabilities and other payables 254,596 379,490
Increase in deferred interest income 215,106 353,506
Increase in amount due to ultimate holding company 19,762,500 37,145,750
CASH GENERATED FROM OPERATIONS 263,300 1,398,160
AB International Finance Limited
Cash Flow Statement
For the year ended 31 December 2009
Annexure L-4/4
Particulars Share Capital
HK$
Capital
Reserve HK$
Retained
Profits HK$
Total
HK$
Balance at 31 December 2007 1,000,000 4,108,726 2,039,603 7,148,329
Net profit for the year 2008 - - 2,743,181 2 ,743,181
Balance at 31 December 2008 1,000,000 4,108,726 4,782,784 9,891,510
Net profit for the year 2009 - - 4,706,807 4 ,706,807
Balance at 31 December 2009 1,000,000 4,108,726 9,489,591 14,598,317
AB International Finance Limited
Statement of Changes in Equity
For the year ended 31 December 2009
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