Unformatted text preview: Annual Report 2017 Sustainable growth
Shared prosperity DISCLAIMER: Islami Bank Bangladesh Limited: This e-mail including any attachment with it may contain privileged, proprietary & confidential
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omission or interception. Islami Bank Bangladesh Limited
Report Annual Report 2017 Sustainable growth
Shared prosperity Sustainable Growth
Sustainable Development-We mean to meet the needs of the present
without compromising the ability of future generations to meet their own
needs. Keeping in view, we strive to ensure Economic Development,
Social Development as well as Environmental Protection driven by digital
To this extent, we pay attention to our society and environment instead of
mere growth. To its end in view, we focus on strategic partnership with all
our stakeholders for building shared prosperity. Islami Bank Bangladesh Limited
Report Registered Office:
Islami Bank Bangladesh Limited, Islami Bank Tower, 40, Dilkusha Commercial Area, Dhaka-1000, Bangladesh, GPO Box No.233;
Phone: PABX (88-02) 9563040, 9560099, 9567161, 9567162; Mobile: 88-01711 435638, 88-01711-435639
FAX: 88-02-9564532, 9568634; SWIFT: IBBLBDDH, e-mail: [email protected]; Website: 2 Islami Bank Bangladesh Limited
Report THE MESSAGE FROM THE HOLY QUR’AN (8-9 ) And they (pious men) feed, for the love of Allah, the poor, the
orphan and the captive. (Saying),"We feed you for the
satisfaction of Allah; no reward do we desire from you, nor
thanks. (Surah Ad-Dahr: 8-9) (245: ) Who is he that will lend to Allah a goodly loan so that He may
multiply it to him many times? And it is Allah Who decreases
or increases (your livelihood), and unto Him you shall return.
(Surah Al Baqarah: 245) (261: ) The likeness of those who spend their wealth in the Way of
Allah, is as the likeness of a grain (of corn); it grows seven
ears, and each ear has a hundred grains. Allah gives manifold
increase to whom He pleases. And Allah is All-Sufficient (for
His creatures' needs), All-Knower. (Surah Al Baqarah: 261) 3 Islami Bank Bangladesh Limited
Report GUIDANCE FROM THE HADITH Narrated Sa`d bin Abu Waqqas (R), The Prophet (SAW) came visiting
me while I was (sick) in Mecca. I said, "O Allah's Messenger (SAW)!
May I will all my property (in charity)?" He said, "No." I said, "Then
'One-half?" He said, "No". I said, "One third?" He said: "Yes, one
third, yet even one third is too much. It is better for you to leave your
inheritors wealthy than to leave them poor begging others.
(Sahih Al Bukhari and Sunan An-Nasa'i). Narrated from Abu Hurayrah (R), He said that the Messenger
of Allah (Peace be upon him) said, "Allah is in the help of a
person, till the person is in the help of his brother (i.e. other person).
(Sahih Muslim) 4 Islami Bank Bangladesh Limited
Report Letter of Transmittal
All Honourable Members/Shareholders,
Registrar of Joint Stock Companies and Firms,
Bangladesh Securities and Exchange Commission,
Dhaka Stock Exchange Limited and
Chittagong Stock Exchange Limited
Subject: ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31, 2017
Please find an enclosed copy of the Annual Report along with the audited Financial
Statements including consolidated and separate Balance Sheet as at December 31,
2017 and Profit & Loss Account, Cash Flow Statements and Statement of Changes
in Equity for the year ended December 31, 2017 along with the notes thereon of
Islami Bank Bangladesh Limited and its subsidiaries (Islami Bank Securities Limited
and Islami Bank Capital Management Limited) for your kind perusal and record. Thank you.
Yours faithfully, (J Q M Habibullah, FCS)
DMD & Company Secretary 5 Islami Bank Bangladesh Limited
01 Company Ethos
02 Corporate Structure
03 Corporate Governance
04 Directors’ Report
05 Risk Management Company Ethos
Letter of Transmittal
Notice of 35th AGM
Core Values & Commitments
Code of Conduct and Ethical Principles
Awards & Recognitions
Forward Looking Statement
Future Outlook: Priorities for 2018
Managing Director’s Review
Sponsors & Placement Holders 5
34-35 Corporate Structure
Board and its Committees
Shari’ah Supervisory Committee
Management Committee (MANCOM)
Directors’ Profile 36-37
46-59 Corporate Governance
Corporate Governance Report
CEO and CFO’s Declaration to the Board
Certificate on Compliance of Corporate
Compliance Status of BSEC Guidelines
Global Reporting Initiatives Disclosure Indes
- Corporate Profile
- Financial Review
- Business Model
- Business Review
Integrated Reporting 60-84
140 Risk Management
Report of Risk Management Committee
Risk Management Report
Disclosure on Risked Based Capital (Basel III)
Non-Performing Investment Management
Stakeholder and materiality
Sustainability Report 6 141-143
203-208 Islami Bank Bangladesh Limited
Management Report & Commentary 06 Management Report & Commentary
07 Financial Statements
08 Consolidated Financial Statements
09 Financial Statements-IBBL Management Report and Analysis
Report on Financial Inclusion
Products and Services
Alternative Delivery Services
Communication and Business Promotion
Horizontal & Vertical Analysis
Profitability, Dividends, Performance and
Statement of Value Added
Five Years Performance
Report of the Shari’ah Supervisory
Audit Committee Report 209-213
267-270 Financial Statements
Independent Auditors’ Report 271-273 Consolidated Financial Statements
Consolidated Balance Sheet
Consolidated Profit and Loss Account
Consolidated Cash Flow Statement
Consolidated Statement of Changes in Equity 276-277
280-281 Financial Statements-IBBL
Profit and Loss Account
Cash Flow Statement
Statement of Changes in Equity
Notes to the Consolidated Financial
Standard Disclosure Index
IBBL ATM & IDM Location
Glossary of Terms
Proxy Form & Attendance Slip 282-283
395 7 Islami Bank Bangladesh Limited
Report Bmjvgx e¨vsK evsjv‡`k wjwg‡UW
Islami Bank Bangladesh Limited
Head Office, Islami Bank Tower
40, Dilkusha Commercial Area, Dhaka. NOTICE OF THE 35TH ANNUAL GENERAL MEETING
Notice is hereby given that the 35th Annual General Meeting of Islami Bank Bangladesh Limited will be held on Monday,
the 25th June 2018 at 10.00 AM at Kurmitola Golf Club, Dhaka Cantonment, Dhaka for transacting the following business: AGENDA
01. To receive, consider and adopt the Audited Financial Statements for the year ended 31st December
2017 and Reports of the Directors and Auditors thereon.
02. To approve Dividend for the year ended 31st December 2017.
03. To appoint Auditor(s) and to fix up their remunerations for the year 2018.
04. To elect/re-elect Directors.
All Members are requested to kindly make it convenient to attend the Meeting in time.
By order of the Board of Directors
25th April, 2018 (J Q M Habibullah, FCS)
DMD & Company Secretary
a) Record date is 21.05.2018 i.e. the honorable shareholders whose names will appear in the CDS (Central
Depository System)/Company’s Register on 21.05.2018 will be entitled to get dividend for the Year 2017 against
b) A member eligible for attending and voting at the Annual General Meeting may appoint a proxy on his/her behalf.
c) Power of Attorney / Proxy Form must be submitted to the Registered Office or Share & Bond Division (63 Dilkusha
C/A, 5th Floor, Dhaka) of the Company at least 48 (Forty Eight) hours before the Meeting i.e. 10.00 AM on Saturday,
the 23rd June, 2018. Revenue Stamp of Tk.20/- (Taka Twenty) only shall have to be affixed on the Proxy Form.
d) Annual Report, Attendance Slip and Proxy Form along with the Notice will be sent to the honourable shareholders
by post/courier. The honourable shareholders may also collect Proxy Form from the Share & Bond Division of the Company.
e) Directors’ Report and Audited Financial Statements of the Bank for the year ended 31st December 2017 along
with the Auditors’ Report thereon shall be available on Bank’s website: .
f) Election of Directors will be dealt in terms of Articles of Association of the Company and relevant
rules/laws/circulars in force.
g) Entry is reserved only for members and Proxies / Attorneys. Attendance slip (duly signed) must be submitted to the
Registration Counter at the time of entrance. Registration Counter shall remain open till 11:00 AM. 8 Islami Bank Bangladesh Limited
Our vision is to always strive to achieve superior financial
performance, be considered a leading Islami Bank by reputation
Our goal is to establish and maintain modern banking
techniques, to ensure soundness and development of the
financial system based on Islamic Principles and to become a
strong and efficient organization with highly motivated
professionals, working for the benefit of people, based on
accountability, transparency and integrity to ensure stability of
the financial systems.
We will try to encourage savings in the form of direct investment.
We will also try to encourage investment particularly in projects,
which are more likely to lead to higher employment. 9 Islami Bank Bangladesh Limited
To establish Islamic Banking through introduction of
a welfare oriented banking system and also ensure
equity and justice in all economic activities, achieve
and equitable development
through diversified investment operations particularly
in the priority sectors and less developed areas of
To encourage the socio-economic development and
financial services to the low-income community
particularly in the rural areas. 10 Islami Bank Bangladesh Limited
Report Strategic Objectives
The general strategic objectives of IBBL is to consider balanced scorecard methodology and continually adhere the
same through annual reviewing while some specific objectives are mentioned below:
To achieve sustainable growth in all key financial indicators;
To increase bottom line through maximization of income and efficient management of expenditure. Customer Focus
Develop strategic partnership by addressing their existing and dynamic needs of product and services;
Endeavor to attract customer through delivering need based financial services;
Continuous improvement of product and services for adopting changing need of customer base to retain market share. Operational Excellence
Increase community outreach through innovation of various marketing channels;
Increase efficiencies through use of virtual technologies for moving towards financial excellence;
Improve internal and external communications through social communication network;
Develop and implement a promotional plan to expedite financial inclusion;
To include unbanked people into banking with Over the Counter banking services. Human Development
Employ professionals who create success for customers;
To develop the leadership abilities and potential of our team;
To align incentives and staff rewards with performance;
To continually learn and adopt global updated best practices. 11 Core Values & Commitments
Adherence with Islamic Shari’ah
Superiority of Islamic Financial System is the centre of our strength.
All deposit and investment products as well as operational ethics are guided by the principles of
Islamic Banking and Shariah.
Ensure equity & justice in all economic activities.
Achieve balanced growth and equitable development.
Banking unbanked population through financial inclusion.
Socially Responsible Banking
No investment in socially and environmentally undesirable project.
Expanding investment on need based retail and priority sectors of the country.
Act what we believe in.
Respect every relationship.
Strict compliance to regulatory requirement.
Care for all stakeholders.
Believe in continuous improvement. 12 Islami Bank Bangladesh Limited
Report Code of Conduct and
Shari’ah foundation of ethics
Avoidance of interest (Riba) in all transactions
Ensuring justice and fairness to all the stakeholders
Righteousness in dealing with the day to day affairs
Ensuring transparency & avoidance of obscurity (Gharar) Principles of personnel ethics
Trustworthiness in discharging the assigned duties
Dedication in abiding by the rules and regulations
Commitment in making one’s work perfect
Adherence to truth and avoidance of falsehood
Maintaining highest level of honesty and integrity Rules of ethical conduct
General Code of Conduct of the Bank
Guidelines of National Integrity Strategy
Disciplinary procedures regarding the commission of misconduct Conduct towards shareholders, managers and fellow employees
Preserving the benefits and interest of the shareholders
Maximizing company profit and manage the same ethically
Providing fair and equal employment opportunity
Ensuring logistic support for employee satisfaction
Providing opportunities for professional development
Adherence to good corporate governance practices
Refraining from any sort of favoritism and biasness
Appreciating the value of individual & team contribution Rules of conduct towards those who deal with the institution
and related parties
Ensuring prompt & responsive approach to the customer need
Treating the customers fairly and without any prejudice
Ensuring privacy/secrecy of customers/stakeholders information
Updating customer regarding suspicious transaction in his account
Informing the customers regarding all banking product & services
Recognizing the norms, customs, values of the community/society
Treating the external counter-parties professionally and impartially
Avoiding conflict of interest while negotiating with the counter-parties
13 Islami Bank Bangladesh Limited
Report Awards & Recognitions
South Asian Federation of Accountants (SAFA)
SAFA awarded IBBL the 1st Position in SAARC Anniversary Award for Corporate Governance Disclosures for the
year 2016 and 2012. We were also awarded the 1st position under Private Sector Banks (including Co-operative
Banks) in the Best Presented Annual Reports for the year 2012. Institute of Chartered Accountants of Bangladesh (ICAB)
ICAB conferred IBBL the 2nd position for good Corporate Governance for the year 2016, 3rd position under Private
Sector Banks (including Co-operative Banks) in the Best Presented Annual Reports for the year 2014. ICAB also
conferred IBBL the 1st position both under Private Sector Banks (including Co-operative Banks) in the Best
Presented Annual Reports and SAARC Anniversary Award for Corporate Governance Disclosures for the year 2012. Institute of Cost and Management Accountants of Bangladesh (ICMAB)
ICMAB glorified IBBL with 1st Position amongst the Private Commercial Banks in Islamic Operation in ICMAB
National Best Corporate Award – 2016, 2015, 2014, 2013, 2012, 2011, 2010. The Banker
IBBL, being only Bank in Bangladesh, entered into the World’s Top 1,000 Banks list in 2012. IBBL has made
Bangladesh proud of being among the best 1000 banks in the world, ranked by 'The Banker’. This prestigious
ranking is a clear testimony to IBBL’s stability and strength and its leadership in financial sector of Bangladesh.
Position in terms of key indicators in 2017:
81st in Performance (Profits on Capital)
346th in Return on Asset (ROA)
765th in Size (Assets base)
846th in Soundness (Capital to Assets Ratio) and
941st in Strength of Tier 1 capital.
IBBL won “Bank of the Year Award-2016” conferred by ‘The Banker’, UK’s premier financial magazine of
Financial Times Group, London. The award is regarded as the Oscar in banking industry. The Banker has awarded
this highly recognized global recognition upon Islami Bank Bangladesh Limited after a vigorous analysis of the
performances over the years. IBBL is the only Bangladeshi Bank awarded ever by the The Banker. Global Finance
The Global Finance, a reputed USA-based Financial Magazine, adjudged IBBL as the best Islamic Financial
Institution of Bangladesh for the years 2008, 2009, 2010, 2011 & 2013. Bangladesh Bank and SME Foundation
Bangladesh Bank and SME Foundation jointly conferred IBBL the prestigious award - the best ‘Small Entrepreneur
Friendly Bank of the Year’ in 2014 to IBBL considering its contribution to SME financing. 14 Islami Bank Bangladesh Limited
Report Awards The Strongest
Islamic Retail Bank
in South Asia 2017 NRB Remittance
Award 2017 (Gold) Bangladesh Bank
Award 2016 The Strongest
Islamic Retail Bank
in Bangladesh 2017 Highest Taxpayer in the
Banking Sector Award 2017 ICMAB Best
Award 2016 SAARC Anniversary Award for
Corporate Governance 2017 Arabian Banker
Award 2017 The Banker
Award 2016 Best Islamic Bank
in Banladesh Large Taxpayer
Unit Award 2017 Remittance Gold
Award 2016 15 Islami Bank Bangladesh Limited
Report Other Recognitions
Islami Bank Bangladesh Limited achieved ‘Islamic Retail Banking Awards (IRBA) 2017’ as Strongest Islamic
Retail Bank in South Asian Region conferred by UK-based Financial Intelligence House Cambridge IF Analytica.
IBBL was awarded as the highest taxpayer in the banking sector in 2016-2017 tax year by the Large Taxpayer
Unit (LTU) of the National Board of Revenue.
Islami Bank Bangladesh Limited has been awarded Bangladesh Bank Remittance Award for collecting highest
remittance in the year 2016.
IBBL is the only Bank among top 20 (twenty) VAT payers in Bangladesh in the year 2016.
IBBL received the Asian Banker CEO Leadership Achievement Award-2016 and was recognised as the ‘Best
Managed Bank’ in Bangladesh. The award was given at the Asian Banker Summit held at the JW Marriott Hanoi,
Gold Medal for outstanding contribution to the foreign remittance services of Bangladesh by Centre for
Non-Resident Bangladeshi in 2016.
IBBL was awarded the ‘Sardar Patel Award’ 2016 for outstanding contribution in Sustainable Economic
Gold medal as ‘Branding Bangladesh Award’ for its outstanding performance in remittance services last year by
Centre for Non-Resident Bangladeshi in 2014.
Financial Branding Award by Centre for Non Resident Bangladeshis for its outstanding contribu...
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- Fall '16
- James Bakul Sarkar
- Islami Bank Bangladesh Limited
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