Standard Chartered Bank
Bangladesh Branches
Financial Statements 2015
Independent Auditor's Report
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement including the assessment of the risks of
material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we
consider internal controls relevant to the entity’s preparation of financial statements that give a true and fair view in order
to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion
on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Bank as at 31 December
2015, and of its financial performance and its cash flows for the year then ended in accordance with Bangladesh
Financial Reporting Standards as explained in note 3.2.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, the Bank Company Act, 1991 and the rules and regulations issued by
Bangladesh Bank, we also report the following:
(a) we have obtained all the information and explanation which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(b) to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s
Responsibility section in forming the above opinion on the financial statements of the Bank and considering
the reports of the management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and
forgeries as stated under the Management’s Responsibility for the Financial Statements and Internal Controls
section:
i) internal audit, internal control and risk management arrangements of the Bank as disclosed in note 30.2
to the financial statements appeared to be materially adequate; and
ii) nothing has come to our attention regarding material instances of forgery or irregularity or administrative
error and exception or anything detrimental committed by employees of the Bank.
(c) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appeared
from our examination of those books;
(d) the balance sheet and the profit and loss account dealt with by the report are in agreement with the books of
account;
(e) the financial statements of the Bank have been drawn up in conformity with prevailing rules, regulations and
accounting standards as well as with related guidance issued by Bangladesh Bank;
(f) adequate provisions have been made for advances which are, in our opinion, doubtful of recovery;
(g) the records and statements submitted by the branches have been properly maintained and consolidated in
the financial statements;
(h) the information and explanation required by us have been received and found satisfactory; and
(i) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 2,000 person
hours for the audit of the books and accounts of the Bank.
19
20
13,666,780,012
3,785,529,594
9,881,250,418
15,571,836,947
6,221,277,393
9,350,559,554
Income from investments
Commission, exchange and brokerage income
Other operating income
21
22
23
6,005,472,934
5,960,740,620
23,153,213
11,989,366,767
6,888,356,351
6,128,284,771
971,317,496
13,987,958,618
21,870,617,185
23,338,518,172
3,708,743,027
551,170,116
56,221,063
242,960,094
1,150,000
250,969,389
20,765,094
558,877,713
1,273,432,403
6,664,288,899
2,534,834,104
578,849,176
41,666,999
216,191,453
1,150,000
244,443,785
13,526,214
649,486,213
1,213,728,202
5,493,876,146
15,206,328,286
17,844,642,026
16.1
643,779,513
14,562,548,773
627,216,861
17,217,425,165
16.4
13.3
5,319,784,954
(60,541,912)
5,259,243,042
9,303,305,731
5,969,881,102
(523,018,147)
5,446,862,955
11,770,562,210
Total operating income
Salaries and allowances
Rent, taxes, insurance, lighting, etc.
Legal expenses
Postage, stamps, telephone, telex, etc.
Auditors' fee
Printing, stationery and advertisement
Chief executive officer's salary
Repair, maintenance and depreciation
Other expenses
Total operating expenses
Profit before provision
Provision for loans and advances and off-balance sheet exposures
Total profit before income tax
Provision for income tax
Current tax
Deferred tax
Net profit after tax
The accompanying notes 1 to 30 form an integral part of these financial statements.
Abrar A. Anwar
Chief Executive Officer, Bangladesh
Dhaka, 28 April 2016
Standard Chartered Bank
Bangladesh Branches
Cash Flow Statement
for the year ended 31 December 2015
Balance Sheet
as at 31 December 2015
8
Money at call and short notice
Investments
Government securities
Other investments
2014
Taka
2,193,451,568
13,977,702,007
39,996,165
16,211,149,740
2,572,999,553
13,166,105,596
35,296,726
15,774,401,875
60,253,787
21,927,082,553
21,987,336,340
44,048,634
18,621,142,489
18,665,191,123
-
-
60,194,665,155
18,000,000
60,212,665,155
57,939,355,438
18,000,000
57,957,355,438
99,481,012,603
14,959,279,110
114,440,291,713
98,402,884,673
12,275,182,362
110,678,067,035
10
11
Fixed assets including premises, furniture and fixtures
12
692,232,603
1,036,790,794
Other assets
13
8,812,154,232
9,626,603,058
-
-
222,355,829,783
213,738,409,323
Non banking assets
Total assets
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents 14
Deposits and other accounts
15
Current and other accounts
Bills payable
Savings deposits
Term deposits
Short term deposits
Other deposits
Other liabilities
9,388,573,236
12,941,306,899
38,488,266,318
1,349,446,891
48,132,356,047
40,733,064,549
16,511,221,536
10,708,816,060
155,923,171,401
36,042,742,107
1,434,544,164
42,863,248,887
41,365,955,413
18,189,937,859
9,346,052,544
149,242,480,974
22,019,277,346
24,851,567,145
187,331,021,983
187,035,355,018
2,219,501,566
249,443,397
32,555,862,837
35,024,807,800
2,207,278,944
502,518,255
23,993,257,106
26,703,054,305
222,355,829,783
213,738,409,323
16
Total liabilities
Equity
Fund deposited with Bangladesh Bank
Other reserves
Profit and loss account balance
Total equity
5.1
17
18
Total liabilities and equity
OFF-BALANCE SHEET ITEMS
Contingent liabilities
Acceptances and endorsements
Letters of guarantee
Irrevocable letters of credit
Bills for collection
27
42,082,974,984
28,860,028,579
30,197,533,049
11,844,709,170
112,985,245,782
50,750,185,710
27,656,280,400
29,488,493,006
10,955,588,876
118,850,547,992
13,549,272,480
13,549,272,480
17,022,759,090
17,022,759,090
126,534,518,262
135,873,307,082
Other commitments
Forward contracts
Total off-balance sheet items
The accompanying notes 1 to 30 form an integral part of these financial statements.
Abrar A. Anwar
Chief Executive Officer, Bangladesh
Dhaka, 28 April 2016
B)
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
As per our report of same date.
Rahman Rahman Huq
Chartered Accountants
C)
2014
Taka
13,995,182,318
(4,341,623,092)
5,810,015,874
(4,084,822,491)
(3,156,914,692)
(6,602,834,244)
1,619,003,673
16,213,789,280
(7,472,755,322)
22,500,000
6,079,027,526
(2,659,633,536)
(1,096,860,705)
(5,907,474,535)
5,178,592,708
Net cash receipt from operating activities
(4,148,228,526)
164,247,182
6,680,690,427
1,064,266,335
202,831,755
3,963,807,173
5,582,810,846
8,846,451,082
(746,922,302)
(20,309,222,218)
(2,327,139,756)
(528,563,959)
(15,065,397,153)
(9,886,804,445)
Cash flows from investing activities
Income from investments
Net investment in treasury securities
Proceeds from disposal of fixed assets
Purchase of fixed assets
Other income
Net cash used in investing activities
5,916,506,162
(2,255,309,716)
49,397,584
(204,976,236)
15,941,819
3,521,559,613
5,374,129,385
(12,854,633,200)
1,148,193,431
(672,898,585)
29,490,012
(6,975,718,957)
Cash flows from financing activities
Profit remitted to head office
Repo with Bangladesh Bank
Net cash used in financing activities
(740,700,000)
(4,617,000,000)
(5,357,700,000)
(8,128,894,118)
4,617,000,000
(3,511,894,118)
3,746,670,459
(20,374,417,520)
Increase / (decrease) in operating assets and liabilities
Money at call and short notice
Loans and advances to customers
Other assets
Customer deposits
Borrowing from other banks and financial institutions
Other liabilities
9
Loans and advances
Loans, cash credit, overdrafts, etc.
Bills purchased and discounted
Rahman Rahman Huq
Chartered Accountants
Cash flows from operating activities
Interest received
Interest paid
Dividend income
Commission, exchange and brokerage income received
Cash paid to employees
Cash paid to suppliers
Income tax paid
Operating cash flows before changes in operating assets and liabilities
D)
Net increase / (decrease) in cash and cash equivalents (A+B+C)
E)
Effects of exchange rate changes on cash and cash equivalents
F)
F)
12,222,623
4,222,360
Opening cash and cash equivalents
34,439,592,998
54,809,788,158
Closing cash and cash equivalents (D+E+F) (Note - 26)
38,198,486,080
34,439,592,998
Statement of Changes in Equity
Standard Chartered Bank
Bangladesh Branches
Statement of Changes in Equity
for the year ended 31 December 2015
Particulars
Fund deposited with
Bangladesh Bank
Taka
Other
reserve
Taka
Profit and Loss
account balance
Taka
Total
Taka
2,203,056,583
1,412,654,908
20,351,589,014
23,967,300,505
4,222,360
-
-
4,222,360
Actuarial gain net of deferred tax
-
(174,782,488)
-
(174,782,488)
Equity reserve - amortised discount
on Held to Maturity (HTM) securities
-
(515,998,273)
-
(515,998,273)
Balance as at 1 January 2014
Revaluation of foreign currency held
as capital during the year 2014
Background
Standard Chartered Bank (SCB), Bangladesh Branches ("the Bank") commenced its banking operations
in Bangladesh in 1948 after obtaining licence from the Central Bank. Standard Chartered Bank is
incorporated in England by Royal Charter 1853. The liability of its stockholders is limited.
2
Nature of business
The principal activities of the Bank are to provide a comprehensive range of financial services,
commercial banking, trade services, cash management, treasury and securities and custodial services.
Offshore Banking Unit (OBU) of the Bank commenced its banking operations in Bangladesh on 16 August
1994 after obtaining banking licence from Bangladesh Bank on 20 December 1993.
On 18 November 2003, the Bank received permission from Bangladesh Bank to provide Islamic banking
services. The Bank commenced providing such services from 26 February 2004 on Islamic Shariah
principles based banking which is governed by the SCB Shariah Supervisory Committee based in Dubai.
3
Basis of preparation
3.1 Reporting period
These financial statements cover one calendar year from 1 January 2015 to 31 December 2015. These
financial statements are authorised for issue by management of the Bank on 28 April 2016.
3.2 Statement of compliance
The Financial Reporting Act 2015 (FRA) has been enacted during the year. Under the FRA, the Financial
Reporting Council (FRC) is to be formed and it is to issue financial reporting standards for public interest
entities such as banks. The Bank Companies Act 1991 has been amended to require banks to prepare
their financial statements under such financial reporting standards.
The FRC is yet to be formed and as such no financial reporting standards have been issued as per the
provisions of the FRA. Hence, the financial statements of the Bank continue to be prepared in
accordance with Bangladesh Financial Reporting Standards (BFRS) and the requirements of the Bank
Companies Act 1991, the rules and regulations issued by Bangladesh Bank and the Companies Act
1994. In case any requirement of the Bank Companies Act 1991, and provisions and circulars issued by
Bangladesh Bank differ with those of BFRS, the requirements of the Bank Companies Act 1991, and
provisions and circulars issued by Bangladesh Bank shall prevail. Material deviations from the
requirements of BFRS are as follows:
i) Investment in shares and securities
BFRS: As per requirements of Bangladesh Accounting Standards (BAS) 39 Financial Instruments:
Recognition and Measurement, investment in shares and securities generally falls either under at Fair
Value Through Profit and Loss (FVTPL) or under Available For Sale (AFS) where any change in the fair
value (as measured in accordance with BFRS 13 Fair Value Measurement) at the year end is taken to
profit and loss account or revaluation reserve, respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares
and unquoted shares are revalued at the year end at market price and as per book value of last
audited balance sheet, respectively. Provision should be made for any loss arising from diminution in
value of investment.
ii) Revaluation gains / losses on Government securities
BFRS: As per requirement of BAS 39, where securities fall under the category of Held for Trading
(HFT), any change in the fair value of held for trading securities is recognised through profit and loss
account. Securities designated as Held to Maturity (HTM) are measured at amortised cost method
and interest income is recognised in the profit and loss account.
Bangladesh Bank: As per DOS circular no. 05 dated 26 May 2008 and DOS circular no. 05 dated 28
January 2009, HFT securities are revalued on the basis of marking to market and at year end any
gains on revaluation of securities which have not matured as at the balance sheet date are recognised
in other reserves as a part of equity and any losses on revaluation of securities as at the balance sheet
date are charged in the profit and loss account. Interest on HFT securities including amortisation of
discount is recognised in the profit and loss account. HTM securities which have not matured as at
the balance sheet date are amortised at the year end and changes in amortisation are recognised in
other reserves as a part of equity.
Cash Flow Statement
Bangladesh Branches
Balance with other banks and financial institutions
Inside Bangladesh
Outside Bangladesh
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
As per our report of same date.
Standard Chartered Bank
6
24
25
1
2014
Taka
Interest income
Interest expense on deposits and borrowings
Net interest income
A)
Cash
Cash in hand (including foreign currencies)
Balances with Bangladesh Bank (including foreign currencies)
Sonali Bank as an agent of Bangladesh Bank (local currency)
2015
Taka
Notes
2015
Taka
Balance Sheet
2015
Taka
Notes to the Financial Statements
as at and for the year ended 31 December 2015
Profit and Loss Account
for the year ended 31 December 2015
Rahman Rahman Huq
Chartered Accountants
Notes
Bangladesh Branches
Bangladesh Branches
Management’s Responsibility for the Financial Statements and Internal Controls
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with
Bangladesh Financial Reporting Standards as explained in note 3.2 and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error. The Bank Company Act, 1991 and Bangladesh Bank regulations require the management
to ensure effective internal audit, internal control and risk management functions of the Bank. The management is also
required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank
on instances of fraud and forgeries.
Dhaka, 28 April 2016
Standard Chartered Bank
Standard Chartered Bank
Report on the Financial Statements
We have audited the accompanying financial statements of Standard Chartered Bank, Bangladesh Branches ("the
Bank") which comprise the balance sheet as at 31 December 2015, the profit and loss account, cash flow statement and
statement of changes in equity for the year then ended and a summary of significant accounting policies and other
explanatory information.
PROPERTY AND ASSETS
Notes to the Financial Statements
Profit and Loss Account
Independent Auditor's Report to the Management of
Standard Chartered Bank
Bangladesh Branches
Net profit for the year
-
-
11,770,562,210
11,770,562,210
Profit remitted to Head Office
Revaluation reserve account- Held for
Trading (HFT) securities
-
(219,355,892)
(8,128,894,118)
-
(8,128,894,118)
(219,355,892)
Balance as at 31 December 2014
2,207,278,943
502,518,255
23,993,257,106
26,703,054,304
Balance as at 1 January 2015
Revaluation of foreign currency held
as capital during the year 2015
Actuarial gain net of deferred tax
Equity reserve - amortised discount
on Held to Maturity (HTM) securities
net of deferred tax
Net profit for the year
2,207,278,943
12,222,623
502,518,255
-
23,993,257,106
-
26,703,054,304
12,222,623
-
(230,061,625)
(392,152,454)
-
(230,061,625)
(392,152,454)
-
-
9,303,305,731
9,303,305,731
Profit remitted to Head Office
-
-
(740,700,000)
(740,700,000)
Revaluation reserve account- Held for
Trading (HFT) securities net of deferred tax
Balance as at 31 December 2015
-
369,139,221
-
369,139,221
2,219,501,566
249,443,397
32,555,862,837
35,024,807,800
iii) Repo and reverse repo transactions
BFRS: As per BAS 39 when an entity sells a financial asset and simultaneously enters into an
agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (repo), the
arrangement is treated as a loan and the underlying asset continues to be recognised in the entity’s
financial statements. The difference between selling price and repurchase price will be treated as
interest expense. Same rule applies to the opposite side of the transaction (reverse repo).
Bangladesh Bank: As per DOS Circular letter no. 06 dated 15 July 2010 and subsequent clarification
in DOS circular no. 02 dated 23 January 2013, when a bank sells a financial asset and simultaneously
enters into an agreement to repurchase the asset (or a similar asset) at a fixed price on a future date
(repo or stock lending), the arrangement is accounted for as a normal sale transaction and the
financial asset is derecognised in the seller’s book and recognised in the buyer’s book.
However, as per DMD circular letter no. 07 dated 29 July 2012, non primary dealer banks are eligible
to participate in the Assured Liquidity Support (ALS) programme, whereby such banks may enter
collateralised repo arrangements with Bangladesh Bank. Here the selling bank accounts for the
arrangement as a loan, thereby continuing to recognise the asset.
iv) Provision on loans and advances
BFRS: As per BAS 39, an entity should start the impairment assessment by considering whether
objective evidence of impairment exists for financial assets that are individually significant. For
financial assets that are not individually significant, the assessment can be performed on an individual
or collective (portfolio) basis.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19
dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013 and BRPD circular no. 16 dated
18 November 2014, a general provision at 0.25% to 5% under different categories of unclassified
loans (standard/SMA loans) has to be maintained regardless of objective evidence of impairment.
Also provision for sub-standard loans, doubtful loans and bad/losses loans has to be provided at 5%
to 20%, 5% to 50% and 100%, respectively for loans and advances depending on the duration of
overdue. Again as per BRPD circular no. 14 dated 23 September 2012, a general provision at 1% is
required to be provided for all off-balance sheet exposures. Such provision policies are not
specifically in line with those prescribed by BAS 39.
v) Recognition of interest in suspense
BFRS: Loans and advances to customers are generally classified as 'loans and receivables' as per
BAS 39 and interest income is recognised through effective interest method over the term of the loan.
Once a loan is impaired, interest income is recognised in profit and loss account on the same basis
based on revised carrying amount.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified,
interest on such loans are not allowed to be recognised as income, rather the corresponding amount
needs to be credited to an interest in suspense account, which is presented as liability in the balance
sheet.
vi) Other comprehensive income
BFRS: As per BAS 1 Presentation of Financial Statements Other Comprehensive Income (OCI) is a
component of financial statements or the elements of OCI are to be included in a single Other
Comprehensive Income Statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which are to be
followed by all banks. The templates for financial statements issued by Bangladesh Bank do not
include OCI nor are the elements of OCI allowed to be included in a single other comprehensive
income statement. As such the Bank does not prepare the other comprehensive income statement.
However, elements of OCI, if any, are shown in the statements of changes in equity.
vii) Financial instruments – presentation and disclosure
Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments
differently from those prescribed in BAS 32 Financial Instruments: Presentation, BAS 39 and BFRS 7
Financial Instruments: Disclosures. As such full disclosure and presentation requirements of BFRS 7
and BAS 32 are not made in the financial statements.
viii) Financial guarantees
BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make specified
payments to reimburse the holder for a loss it incurs because a specified debtor fails to make
payment when due in accordance with the terms of a debt instrument. Financial guarantees are
recognised initially at fair value, and the initial fair value is amortised over the life of the financial
guarantee. The financial guarantees is subsequently carried at the higher of this amortised amount
and the present value of any expected payment when a payment under the guarantee has become
probable.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, financial guarantees such as
letter of credit, letter of guarantee etc. are reported as off-balance sheet items.
ix) Cash flow statement
BFRS: As per BAS 7 Statement of Cash Flows, the cash flow statement can be prepared using either
the direct method or the indirect method. The presentation is selected to present these cash flows in
a manner that is most appropriate for the business or industry. The method selected is applied
consistently.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, cash flow is the mixture of direct
and indirect methods.
x) Off-balance sheet items
BFRS: As per BFRS there is no requirement for disclosure of off-balance sheet items on the face of
the balance sheet.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, off-balance sheet items (e.g.
letter of credit, letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
xi) Loans and advances net of provision
BFRS: Loans and advances shall be recognised net of impairment loss as per BAS 39.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, provision on loans and
advances is presented separately as liability and cannot be netted off against loans and advances.
Notes to the Financial Statements
Notes to the Financial Statements
3.3 Basis of measurement
The financial statements of the Bank have been prepared on historical cost basis except for the following:
- Government treasury bills and bonds designated as HFT and subsequently measured at fair value using
marking to market concept with gains credited to revaluation reserve as per DOS circular 05 dated 26
May 2008 and DOS circular 05 dated 28 January 2009; and
- Government treasury bills and bonds designated as HTM and subsequently measured using
amortisation concept as DOS circular 05 dated 26 May 2008 and DOS circular 05 dated 28 January
2009.
- Net defined benefit (asset) liability in respect of defined benefit plan recognised as the present value of
defined benefit obligation less fair value of plan assets as per BAS 19 Employee Benefits.
3.4 Functional and reporting currency
The financial statements of the Bank are presented in Bangladeshi Taka (Taka/Tk/BDT) which is the Bank’s
functional and reporting currency.
3.5 Use of estimates and judgements
The preparation of financial statements requires management to make judgements, 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 to accounting estimates
are recognised in the periods in which the estimate is revised and in any future periods affected.
In particular, information about significant areas of estimation, uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amounts recognised in the financial
statements are described below:
(a) Provisions for loans and advances
The Bank assesses its loans and advances for objective evidence of impairment on a regular basis and
particularly at year end. While the primary criteria set out in BRPD circular no. 14 dated 23 September 2012
for determining whether a loan is impaired are objective, based on borrower's ability to make timely
repayments, loans and advances may also be classified based on qualitative judgement. This involves
making assessments regarding the economic environment in which borrowers operate in addition to making
judgements about a borrower's financial condition and net realisable value of any underlying collateral.
(b) Taxation
The estimation of current tax provision involves making judgements regarding admissibility of certain
expenses as well as estimating the amount of other expenses for tax purposes.
In addition, the recognition of deferred tax assets requires the Bank to estimate the extent to which it is
probable that future taxable profits will be available against which the deferred tax assets may be utilised.
(c) Net defined benefit (asset) liability under defined benefit plan
The determination of the Bank's net defined benefit (asset) liability in respect of defined benefit plan involves
the use of estimates regarding demographic variables such as employee turnover and mortality and financial
variables such as discount rate, future increases in salaries and medical costs that will influence the cost of
the benefit.
3.6 Cash flow statement
The cash flow statement has been prepared in accordance with the BAS 7 considering the requirements
specified in the BRPD circular no. 14 dated 25 June 2003.
3.7 Liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on the basis of
residual maturity term which has been given in the statement.
3.8 Consolidation
All balances of all branches (including Islamic branch) are included in these financial statements except
those of Offshore Banking Unit (OBU) branch.
4
4.1 Foreign currencies
According to BAS 21 The Effects of Changes in Foreign Exchange Rates, tansactions in foreign currencies
are translated into the respective functional currency of the operation at the spot exchange rate at the date
of the transaction.
Monetary assets, liabilities and fund deposited with Bangladesh Bank as capital denominated in foreign
currencies at the reporting date are translated into the functional currency at the spot exchange rate at that
date. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair value
are retranslated into the functional currency at the spot exchange rate at the date that the fair value was
determined. Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign
currency are translated using the exchange rate at the date of the transaction.
Foreign currency differences arising on translation are recognised in the profit and loss account except for
exchange rate differences on funds deposited with Bangladesh Bank as capital, which is recognised directly
in equity.
4.2 Revenue recognition
Interest income on conventional banking
Interest income are recognised in the profit and loss account using the effective interest method.
The effective interest rate is the rate that exactly discounts the estimated future receipts through the
expected life of the financial asset or liability (or, where appropriate, a shorter period) to the carrying amount
of the financial asset or liability.
Interest is accrued on a daily basis and applied to customer accounts every month, quarter and at maturity
depending on the product offerings.
In accordance with BRPD circular no. 14 dated 23 September 2012, interest accrued on sub-standard loans
and doubtful loans are credited to Interest Suspense Account which is included within Other liabilities.
Interest from loans and advances ceases to be accrued when they are classified as bad / loss.
Profit on Saadiq investments
Profit on investments is recognised, on an accrual basis, over the lifetime of the investments so as to reflect
a constant rate of return on their carrying amounts. Overdue / late payment charge on investment is
transferred to charity suspense account instead of income account.
Interest income from investment
Interest on investment securities other than the amount of amortisation of premium and discount on
securities classified as HTM which is recognised directly in equity in accordance with DOS circular no. 05
dated 26 May 2008, is recorded in the profit and loss account.
Commission and fee income
The Bank earns commission and fee income from a diverse range of services (e.g. LC operations, accounts
maintenance, custodial services, credit card renewal etc.) provided to its customers. Commission and fee
income is accounted for as follows:
-
income earned on the execution of a significant act is recognised as revenue when the act is
completed,
income earned from services provided is recognised as revenue as the services are provided.
4.3.1 Provisions on loans and advances
At each balance sheet date and periodically throughout the year, the Bank reviews loans and advances to
assess whether objective evidence that impairment of a loan or portfolio of loans has arisen supporting a
change in the classification of loans and advances, which may result in a change in the provision required in
accordance with BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated 27 December
2012, BRPD circular no. 05 dated 29 May 2013 and BRPD circular no. 16 dated 18 November 2014. The
guidance in the circulars follow a formulaic approach whereby specified rates are applied to the various
categories of loans as defined in the circular. The provisioning rates are as follows:
2015
2014
0.25%
0.25%
Unclassified loans under housing finance (HF) and on loans for professionals (LP)
2.00%
2.00%
Unclassified loans under consumer financing (CF) other than housing finance (HF) and
5.00%
5.00%
Unclassified loans to brokerage houses (BH), merchant banks (MB), stock dealers (SD)
2.00%
2.00%
All unclassified loans except under SMEF, HF, LP, CF, BH, MB, SD and short-term
1.00%
1.00%
Unclassified loans under short-term agricultural and micro-credit scheme
2.50%
5.00%
Off-balance sheet exposures
1.00%
1.00%
loans for professionals (LP)
In accordance with BRPD circular no. 05 dated 29 May 2013, the rate of provision on the outstanding
amount of loans kept in the 'Special Mention Account' will be the same as the rates stated above depending
on the types of loans and advances.
Substandard loans and advances
Doubtful loans and advances
Bad / loss loans and advances
2015
2014
20%
20%
50%
50%
100%
100%
Short-term agricultural and micro-credits:
Substandard and Doubtful loans and advances
Bad / loss loans and advances
(a)
Subsequent costs
The cost of replacing part of an item of fixed assets is recognised in the carrying amount of the item if it is
probable that the future economic benefits embodied within the part will flow to the Bank and its cost can
be measured reliably. The cost of day-to-day servicing of fixed assets are expensed when incurred.
(b)
Estimated useful life
Rate of depreciation
50 years
2%
Fixed equipments
3 to 15 years
7% - 33%
Computer and office equipments
5 years
20%
Furniture and fittings
5 years
20%
Motor Vehicle
5 years
20%
5%
5%
100%
100%
The above rates are the minimum prescribed rates. BRPD circular no. 14 dated 23 September 2012
provides scope for further provisioning based on qualitative judgements. If the specific provisions assessed
under the qualitative methodology are higher than the specific provisions assessed under the formulaic
approach above, the higher of the two is recognised.
4.3.2 Loan write-off
Loans are normally written off when there is no realistic prospect of recovery of these amounts and in
accordance with BRPD circular no. 02 dated 13 January 2003 and BRPD circular no. 13 dated 7
November 2013.
BFRS 15 Revenue from Contracts with Customers
BFRS 15 establishes a comprehensive framework for determining whether, how much and when
revenue is recognised. It replaces existing recognition guidance, including BAS 18 Revenue, BAS
11 Construction Contracts and BFRI 13 Customer Loyalty Programmes. BFRS 15 is effective for
annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. The
Bank is yet to assess the potential impact of BFRS 15 on its financial statements.
5
Capital
The Bank's approach to capital management is driven by a desire to maintain a strong capital base
to support the development of its business, to meet regulatory capital requirements at all times and
to maintain good credit ratings.
Depreciation
Depreciation on premises other than freehold land, and other fixed assets, is recognised in profit or loss on
a straight line basis over the expected useful life of the assets based on cost. The estimated useful lives and
the rate of depreciation for the current and comparative periods are as follows:
Freehold premises
BFRS 9 Financial lnstruments
BFRS 9 published in July 2014, replaces the existing guidance in BAS 39 Financial lnstruments:
Recognition and Measurement. BFRS 9 includes revised guidance on the classification and
measurement of the financial instruments, a new expected credit loss model for calculating
impairment of financial assets, and the new general hedge accounting requirements. It also
carries forward the guidance on recognition and derecognition of financial instruments from BAS
39. BFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with
early adoption permitted. The Bank is yet to assess the potential impact of BFRS 9 on its financial
statements.
4.7 Fixed assets including premises, furniture and fixtures
Items of fixed assets, other than land, are measured at cost less accumulated depreciation and impairment
losses, as per BAS 16 Property, Plant and Equipment. Cost includes expenditures that are directly
attributable to the acquisition of the asset. Land is carried at cost.
Compliance with capital adequacy regulations
Capital requirements for the Bank at a local level are set and monitored by Bangladesh Bank. The
capital that the Bank is required to hold is determined considering its balance sheet and
off-balance sheet positions in accordance with guidelines on risk based capital adequacy.
The Bank's capital structure consists of Tier I and Tier II capital which is aligned with regulatory
capital structure. Tier I capital is further categorized as Common Equity Tier 1 (CET1) and
Additional Tier 1 capital. The computation of the amount of Common Equity Tier I, Additional Tier
I and Tier II capital shall be subject to the following conditions:
•
The Bank has to maintain at least 4.50% of total Risk Weighted Assets (RWA) as Common Equity
Tier I capital.
•
Tier I capital will be at least 5.50% of the total RWA.
•
Minimum Capital to Risk-weighted Asset Ratio (CRAR) will be 10% of the total RWA.
•
Additional Tier I capital can be maximum up to 1.5% of the total RWA or 33.33% of CET 1,
whichever is higher.
Retirement and disposals
•
An asset is derecognised on disposal or when no future economic benefits are expected from its use. Gains
or losses arising from the retirement or disposal of an asset is determined as the difference between the net
disposal proceeds and the carrying amount of the asset which is recognised as gain or loss from disposal of
asset under other operating income.
Tier II capital can be maximum up to 4% of the total RWA or 88.89% of CET1, whichever is
higher.
•
In addition to minimum CRAR, Capital Conservation Buffer (CCB) @ 2.5% of the total RWA will be
maintained in the form of CET1 in a phased manner from 2016 to 2019.
Depreciation on additions to fixed assets is charged from the month in which such assets are capitalised,
and adjustments to accumulated depreciation for disposals / write offs are made up to the month in which
the relevant assets are disposed / written off.
4.8 Leases
When the Bank is a lessee under finance leases, the leased assets are capitalised and included in fixed
assets and the corresponding liability to the lessor is included in other liabilities. A finance lease and its
corresponding liability are recognised initially at the fair value of the asset or, if lower, the present value of
the minimum lease payments. Finance charges payable are recognised as interest expense over the period
of the lease based on the interest rate implicit in the lease so as to give a constant rate of interest on the
remaining balance of the liability.
5.1 As per section 13 (1), subsequent revision and amendments to the Bank Company Act 1991 and
BRPD circular no. 18 dated 21 December 2014 and BRPD circular no. 11 dated 14 August 2008,
the required amount of the capital and reserves of the bank at the close of the business on 31
December 2015 is Tk. 4,000,000,000 or 10% of risk weighted assets whichever is higher.
Accordingly, the required amount of the capital and reserves of the Bank at the close of the
business on 31 December 2015 was Tk 19,898,868,302 (2014: Tk 20,939,445,861). The Bank's
capital was greater than the amount required as above. The details of the capital as on 31
December are as follows:
2015
Taka
All other leases are classified as operating leases. When the Bank is the lessee under an operating lease,
leased assets are not recognised in the balance sheet. Rentals payable and paid in advance under operating
leases are accounted for on a straight-line basis over the period of the lease, unless another systematic
basis is more representative of the time pattern of the user’s benefit, and are included in rent expenses.
Total risk weighted assets
10% of risk weighted assets
2014
Taka
198,988,683,018
209,394,458,614
19,898,868,302
20,939,445,861
4.9 Borrowings from other banks, financial institutions and agents
Borrowings from other banks, financial institutions and agents include both interest-bearing borrowings
against securities from Bangladesh Bank and other banks, vostro accounts balances and call borrowing
from other banks. These items are brought to financial statements at the gross value of the outstanding
balance.
Total capital held:
Common Equity Tier I
Fund Deposited with Bangladesh Bank
Retained earnings
4.10 Deposits by customers and banks
Actuarial gain/(loss)
Deposits are the Bank’s principal source of debt funding. Deposits are initially measured at fair value and
subsequently measured at amortised cost.
per Bangladesh Bank Guidelines
Interest expense for all deposits are recognised in the profit and loss account using the effective interest
method.
Total Tier I Capital
A provision is recognised if, as a result of a past event, the Bank has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.
General Provision
Revaluation Reserve for Securities
22,630,212
(1,160,742,557)
(669,248,065)
33,407,190,432
25,553,918,194
-
-
33,407,190,432
25,553,918,194
2,032,164,606
2,112,020,797
191,660,856
239,576,070
2,223,825,462
S2,351,596,867
Total regulatory capital
35,631,015,894
27,905,515,061
Total capital required
19,898,868,302
20,939,445,861
Surplus capital
15,732,147,592
6,966,069,200
Total Tier II Capital
4.12 Offsetting financial assets and financial liabilities
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet when
there is a legally enforceable right to offset the recognised amounts and there is an intention to settle on a
net basis, or realise the asset and settle the liability simultaneously.
4.13 Cash and cash equivalents
For the purpose of the cash flow statement, cash and cash equivalents include notes and coins on hand and
balances held with other banks and financial institutions and highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of change in value.
Capital Adequacy Ratio
17.91%
13.33%
Tier I Capital Adequacy Ratio
16.79%
12.20%
1.12%
1.12%
Tier II Capital Ratio
4.14 Employee benefits
Short term benefits
Refer to Annexure - F for Disclosures on Risk Based Capital (Basel III) Pillar III.
6
Cash
In hand (including foreign currencies)
Local currency
Foreign currencies
The Bank contributes to a locally registered provident fund scheme which is approved by the National Board
of Revenue (NBR) for employees of the Bank eligible to be members of the fund in accordance with the rules
of the provident fund constituted under an irrevocable trust. Obligations for contributions to the provident
fund are recognised as an expense in profit or loss when they are due.
2015
Taka
2014
Taka
2,013,847,532
1,980,845,587
179,604,036
592,153,966
2,193,451,568
2,572,999,553
11,363,027,175
10,515,083,211
2,614,674,832
2,651,022,385
Balance with Bangladesh Bank (including foreign currencies)
Local currency
Foreign currencies
Defined benefit plans - Gratuity fund
Foreign currency capital (restricted)
The Bank operates a funded gratuity scheme which is of the nature of a defined benefit scheme for its
permanent employees. The fund has been formed under an irrevocable trust deed and is approved by the NBR.
It is managed by a Board of Trustees comprising of employees of the Bank. Gratuity is payable at the rate of
one month's salary last drawn for each completed year of service or any part thereof in excess of six months.
Actuarial gains or losses that arise are recognised in equity and presented in the statement of changes in
equity in the period they arise. Past service costs are recognised in the period in which the plan amendment
or curtailment occurs.
(207,431,414)
Tier II
Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility of an
outflow of resources embodying economic benefits is reliably estimated.
The net interest expense / (income) on the net defined benefit liability / (asset) for the period is determined
by applying discount rate used to measure the defined benefit obligation at the beginning of the annual
period to the then net defined benefit liability / (asset), taking into account any changes in the net defined
benefit liability / (asset) during the period as a result of contributions and benefit payments. Consequently,
the net interest on the net defined benefit liability / (asset) comprises interest cost on defined benefit
obligation, interest income on plan assets, and interest on the effect on the asset ceiling.
2,207,278,944
23,993,257,103
Additional Tier I
4.11 Provisions for liabilities and charges
In accordance with the requirements of BAS 19 Employee Benefits, the Bank’s net obligation in respect of
its gratuity fund is calculated by estimating the amount of future benefit that employees have earned in return
for their service in the current and prior periods; discounting the benefit to determine its present value; and
deducting the fair value of any plan assets. The calculation is performed by a qualified actuary using the
Projected Unit Credit method.
2,219,501,566
32,555,862,837
Less: Regulatory adjustment for deferred tax assets as
Interest expense on deposits
4.15 Taxation
agricultural and micro-credit scheme
Specific provision on:
A number of new standards and amendments to standards are effective for annual periods
beginning after 1 January 2018 and earlier application is permitted. However, the Bank has not
early applied the following new standards in preparing these financial statements:
Defined contribution plans - Provident fund
4.3 Loans and advances to customers
Loans and advances are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and that the Bank does not intend to sell immediately or in the near term.
Loans and advances are initially measured at fair value, and subsequently measured at amortised cost.
These are stated gross with accumulated specific and general provisions for loans and advances being
shown under other liabilities.
Unclassified loans under small and medium enterprise financing (SMEF)
The Bank has consistently applied the accounting policies as set out in Note 4 to all periods
presented in these financial statements. The various amendments to standards, including any
consequential amendments to other standards, with the date of initial application of 1 January
2015 have been considered. However, these amendments have no material impact on the financial
statements of the Bank.
4.6 Provisions on nostro accounts
Unsettled debit transactions (as per Bank's book and nostro statements) for more than three months on
nostro accounts are reviewed at each balance sheet date by management and provisions are kept in
accordance with Bangladesh Bank Foreign Exchange Policy Department, circular no. FEPD
(FEMO)/01/2005-677 dated 13 September 2005.
A provision is recognised for the amount expected to be paid under performance bonus plans if the Bank
has a present constructive obligation to pay this amount as a result of past service provided by the employee
and the obligation can be estimated reliably.
Dividend income
Dividend income is recognised when it is received.
4.16 New accounting standards not yet adopted
4.5 Provisions for other assets
BRPD circular no. 14 dated 25 June 2001 requires a provision of 100% on other assets which are
outstanding for one year and above. The Bank maintains provisions in line with this circular unless it
assesses there is no doubt of recovery on items of other assets in which case no provision is kept.
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided.
Exchange income
Exchange income includes all gains and losses from foreign currency transactions.
General provision on:
4.4 Investments
Investments in treasury bills and Government bonds are accounted for in accordance with DOS Circular
Letter No. 05 dated 26 May 2008 subsequently amended by DOS circular letter no. 05 dated 28 January
2009, which allow banks to use both HTM and HFT securities for fulfilment of Statutory Liquidity Reserve
(SLR) requirements.
In accordance with the requirements of the aforementioned circulars, amortised discount or premium on
HTM securities is recognised directly in equity. However, coupon interests are recognised in profit or loss.
Gains arising from revaluation of HFT securities on 'Marking to Market' basis are recognised in revaluation
reserve account while losses from revaluation of the same securities are recognised in profit or loss.
Bank's investments in shares (unquoted) are recorded at cost and income thereon is accounted for when
cash is received.
In accordance with BAS 17 Leases, leases in terms of which the Bank assumes substantially all the risks and
rewards of ownership are classified as finance leases.
Significant accounting policies
-
Notes to the Financial Statements
Balance with Sonali Bank as agent of Bangladesh Bank
7
-
-
13,977,702,007
13,166,105,596
39,996,165
35,296,726
14,017,698,172
13,201,402,322
16,211,149,740
15,774,401,875
Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are calculated and maintained in
accordance with section 33 of the Bank Company Act, 1991 and instructions contained in MPD
circular no. 01 dated 23 June 2014 issued by Bangladesh Bank.
The CRR on the Bank's average time and demand liabilities at the rate of 6.5% (bi-weekly basis) and
6% (daily basis) has been calculated and maintained with Bangladesh Bank in current account and
13% SLR, including CRR, on the same liabilities has also been maintained in the form of cash in hand,
balance with Bangladesh Bank and Government securities. Both reserves maintained by the Bank as
at 31 December, are shown below:
Cash Reserve Ratio ( CRR )
Daily 6% (2014: 6%) of average demand and time liabilities:
2015
Taka
2014
Taka
Required reserve
10,158,982,560
9,936,492,880
Actual reserve held
11,905,082,703
10,799,737,000
1,746,100,143
863,244,120
Income tax expense comprises current and deferred tax. Income tax expense is recognised in the profit &
loss account except to the extent that it relates to items recognised directly in equity, in which case it is
recognised in equity.
Surplus
Current tax
Bi-weekly 6.5% (2014: 6.5%) of average demand and time liabilities:
Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of prior years.
Required reserve
11,005,564,440
10,764,533,950
Actual reserve held
11,905,082,703
10,799,737,000
899,518,263
35,203,050
Provision for taxation for the year ended 31 December 2015 has been made on the basis of the provisions
of the Income Tax Ordinance 1984 and the Finance Act 2015. Currently the tax rate applicable for banks is
42.5%. Additionally, banks may have to pay excess profit tax at 15% on so much of their profits as exceed
fifty percent of the aggregate of their capital and reserves as defined in section - 16C of Income Tax
Ordinance 1984.
Deferred tax assets / (liabilities)
As per BAS 12 Income Taxes, deferred tax assets / (liabilities) are calculated using the balance sheet
method, providing for temporary differences between the carrying amount of assets and liabilities and their
tax bases. The tax base of assets is the amount that will be deductible for tax purposes against any taxable
economic benefits that will flow to an entity (in this case, the Bank) when it recovers the carrying amount of
the assets. The tax base of liabilities is their carrying amount, less any amount that will be deductible for tax
purposes in respect of the liabilities in future periods. Deferred tax is measured at the tax rates that are
expected to be applied to temporary differences when they reverse, based on laws that have been enacted
or substantively enacted by the reporting date. Deferred tax is calculated using the tax rates as prescribed
in the Income Tax Ordinance (ITO) 1984 and relevant Statutory Regulatory Orders (SRO) and BRPD circular
no. 11 dated 12 December 2011.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be
available against which the asset can be utilised. Deferred tax assets are reviewed at each reporting date
and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Surplus
Statutory Liquidity Ratio ( SLR )
13% (2014: 13%) of Average demand and time liabilities:
Required reserve
21,507,238,048
21,055,297,850
Actual reserve held with Bangladesh Bank
63,327,622,986
55,721,064,579
Surplus
41,820,384,938
34,665,766,729
2,193,451,568
2,572,999,553
7.1 Actual reserve held for SLR
Cash in hand
Balance with agent bank (Sonali Bank Ltd.)
Excess reserve
Other eligible securities
39,988,000
35,291,000
899,518,263
35,203,026
1,024,000
665,000
Treasury Bills
16,976,025,299
14,903,964,403
Bangladesh Government Treasury Bonds
43,217,615,856
38,172,941,597
63,327,622,986
55,721,064,579
Notes to the Financial Statements
8
Balance with other banks and financial institutions
Inside Bangladesh
Outside Bangladesh
Notes to the Financial Statements
2015
Taka
2014
Taka
9.3
Notes to the Financial Statements
2015
Taka
Residual maturity grouping of Treasury Bills, Bangladesh
Bank Bills and Government Bonds
60,253,787
44,048,634
21,927,082,553
18,621,142,489
On demand
21,987,336,340
18,665,191,123
Up to 1 month
Current account:
Sonali Bank Ltd
IFIC Bank Ltd
78,847
48,504
3,000,000
3,000,000
Prime Bank Ltd
3,000,020
-
Islami Bank Bangladesh Ltd
Total inside Bangladesh
9,746,740
-
60,253,787
44,048,634
9.4
8,011,206,703
Over 3 months but not more than 1 year
24,169,984,047
10,461,133,222
Transport and communications
Over 1 year but not more than 5 years
22,902,935,347
35,761,165,500
Community, social and personal services
1,424,766,248
2,884,558,832
Financing, insurance and business service
60,193,641,155
57,938,690,438
Face value of Treasury Bill (including Bangladesh Bank Bills)
Royal Bank of Canada, Toronto - CAD
9,757,128
7,580,457
107,972
744,704
Svenska Handelsbanken - SEK
7,522,450
2,663,192
18,723,541
117,215,958
SCB Hong Kong - HKD
SCB Nepal - USD
25,829
1,028,918
377,671,533
179,831,514
10,743,970
8,253,920
SCB London - GBP
-
259,714,662
SCB London - USD
37,663,374
34,176,414
SCB Bombay ACU - EUR
2,296,260
4,691,874
SCB Karachi ACU - USD
94,500,833
100,385,664
SCB Colombo ACU - USD
27,969,760
58,332,960
SCB Frankfurt - EUR
-
154,243,618
SCB Singapore - SGD
-
6,256,765
47,453
2,360,222
550,919,012
809,276,531
SCB Tokyo - JPY
Short term deposit account with:
SCB Dhaka OBU - USD
SCB London - USD
Total outside Bangladesh
13,505,440,000
17,694,650,000
7,852,000,000
-
21,357,440,000
17,694,650,000
21,927,082,553
18,621,142,489
Refer to Annexure - B for currency wise balances.
(321,491,727)
21,987,336,340
18,665,191,123
-
-
Over three months but not more than one year
-
-
Over one year but not more than five years
-
-
Over five years
-
-
21,987,336,340
18,665,191,123
94,474,289,121
93,450,096,991
Chittagong
17,472,084,701
14,819,406,670
Narayangonj
581,297,714
489,610,259
Khulna
300,788,873
308,491,025
589,754,728
114,440,291,713
110,678,067,035
41,447,300,000
42,481,000,000
Unamortised amount of Government Bonds
801,623,638
356,888,937
MTM gain / (loss) from Government Bonds - HFT
968,692,218
196,837,098
Market value
43,217,615,856
43,034,726,035
108,273,628,404
103,850,220,359
Total
60,193,641,155
57,938,690,438
10.4 Loans and advances - unclassified and classified classification
Unclassified
Standard
Special Mention Account (SMA)
Secured cash credits
Term loans
1,404,972,068
886,276,127
109,678,600,472
104,736,496,486
Substandard
834,915,490
831,045,169
Doubtful
217,440,445
234,930,532
3,709,335,306
4,875,594,848
Classified
Loans, cash credit, overdrafts, etc.
535,404,842
720,254,243
22,508,414,030
21,870,513,719
2,575,036,304
1,835,067,108
35,110,778,208
37,472,091,036
Revolving loans
9,031,844,769
3,820,920,270
Loans against trust receipts
5,238,693,783
7,890,851,248
520,401,209
465,149,137
House building loans
6,322,294,763
6,790,878,481
Credit cards
5,904,698,076
5,654,295,202
Overdraft
3,654,482,363
3,947,984,547
Staff loans
2,227,929,206
2,137,074,328
Auto loans
Islamic - Credit cards
630,410,196
700,098,721
Islamic - Instalment finance (Murabaha)
202,502,941
322,983,194
Islamic - Auto finance
359,728,227
381,070,648
Islamic - Mortgage finance
3,164,185,795
3,064,598,510
Islamic - Finance against property
245,298,739
242,872,073
Islamic - Corporate Short Term Finance
500,000,000
385,000,000
Islamic - Import invoice financing
748,909,152
701,182,208
99,481,012,603
98,402,884,673
Bad / loss
5,987,622,235
14,804,304,893
99,659,510
Bangladesh Government Treasury Bonds
43,217,615,856
42,674,726,035
Bangladesh Government Islamic Bonds
Prize Bonds
Other investments*
Total
-
360,000,000
1,024,000
665,000
60,194,665,155
57,939,355,438
18,000,000
18,000,000
60,212,665,155
57,957,355,438
*Represent investments in 9,000,000 shares of Central Depository Bangladesh Limited (CDBL) of Taka
10 each which is inclusive of 7,200,000 bonus shares. As per last audited financial statement of CDBL,
book value per share is higher than the cost price of the investment.
i)
ii)
4,245,373,441
6,078,060,496
Bangladesh Bank Bills
-
-
Bangladesh Government Islamic Bonds
-
360,000,000
19,056,132,987
18,204,125,377
23,301,506,428
24,642,185,873
Bangladesh Government Treasury Bonds
Held for Trading (HFT)
Treasury Bills
Bangladesh Bank Bills
Bangladesh Government Islamic Bonds
Bangladesh Government Treasury Bonds
1,742,248,794
8,726,244,397
10,988,403,064
99,659,510
-
-
24,161,482,869
24,470,600,658
36,892,134,727
33,296,504,565
60,193,641,155
57,938,690,438
14,484,924,197
28,738,698,886
26,676,563,582
Loans considered good against which the Bank holds
no security other than the debtor's personal guarantee;
iii)
Loans considered good secured by the personal
undertakings of one or more parties in addition to the
personal guarantee of the debtor
iv)
Loans adversely classified; provision not maintained there against;
v)
Loans taken by directors or officers of the Bank or any
of these either separately or jointly with any other persons;
vi)
-
-
703,859
49,499,933
2,298,350,835
2,137,074,329
-
-
2,298,350,835
2,137,074,329
Loans due from companies or firms in which the directors
of the Bank have interests as directors, partners or managing
agents or in case of private companies as members;
advance made at any time during the year to directors
or managers or officers of the Bank or any of them either
99,481,012,603
98,402,884,673
-
-
99,481,012,603
98,402,884,673
Repayable on demand
14,711,805,538
11,623,449,731
Less than three months
35,668,092,260
37,806,196,070
More than three months but less than 1 year
20,020,043,167
18,191,498,075
More than 1 year but less than 5 years
22,617,348,711
23,827,684,351
separately or jointly with any other person;
viii) Maximum total amount of advances, including temporary advances
granted during the year to the companies or firms in which
the directors of the Bank have interest as directors, partners
10.2 Loans, cash credit, overdrafts, etc.- residual maturity grouping
6,463,722,927
6,954,056,446
99,481,012,603
98,402,884,673
-
-
2,227,929,206
2,137,074,328
2,227,929,206
2,137,074,328
or managing agents or in case of private companies as members;
-
-
ix)
Due from banking companies;
-
-
x)
Classified loans for which interest has not been charged:
(1,056,694,941)
357,462,446
1,673,693,193
286,165,947
291,829,880
264,288,550
3,006,943,856
4,046,200,096
226,023,654
476,754,518
Cumulative amount of written off loans
4,145,590,730
2,240,697,849
Amount written off during the current year
1,673,693,193
286,165,947
Amount of written off loan for which lawsuit has been filed
1,652,583,381
231,674,531
14,919,647,688
12,141,730,708
a) Increase / (decrease) of provision (specific)
Amount of loans written off
Amount realised against the loan previously written off
b) Amount of provision kept against the amount classified
as bad / loss as at the Balance Sheet date
(c) Amount of interest charged in suspense account
xi)
10.3.1 Details of large loans
Loans written off:
Total number of customers having facilities of more than 10% of
the Bank's capital:
Number of the clients
Amount of outstanding loans and advances (BDT)
Amount of classified loans and advances (BDT)
2015
11
2014
66
63
39,075,169,704
32,079,841,228
-
-
Bills purchased and discounted
i)
Inside and outside Bangladesh
Inside Bangladesh
Outside Bangladesh
ii)
10.3.2 Customers' group wise classification of loans
39,631,422
133,451,654
14,959,279,110
12,275,182,362
Classification on residual maturity basis
Payable within one month
11,871,401,833
1,591,302,620
Consumer loans and advances
32,575,139,634
34,089,812,946
Payable over one month but within three months
2,677,664,080
7,939,601,422
Loans and advances to small and medium enterprises
12,050,952,700
10,866,450,387
Payable over three months but within six months
394,133,197
2,744,278,320
2,438,397,796
2,092,762,998
67,375,801,583
63,629,040,704
114,440,291,713
110,678,067,035
5,873,322,569
5,654,295,202
and advances
Loans and advances to large enterprises
9.1 Classification of Treasury Bills and Government Treasury Bonds
Treasury Bills
14,776,736,371
Loans considered good in respect of which the Bank is
fully secured (unclassified loans and advances);
outside Bangladesh
Loans and advances to corporate customers
Held to Maturity (HTM)
5,941,570,549
110,678,067,035
vii) Maximum total amount of advance including temporary
Advances to chief executive, other senior executives and staff
10,988,403,064
4,761,691,241
114,440,291,713
10.5 Particulars of loans and advances
10.1 Loans, cash credit, overdrafts, etc.- inside and
Advances to allied concerns of Directors
Bangladesh Bank Bills
1,474,806,362
63,629,040,704
Dhaka
10.3 Loans and advances- significant concentration
Treasury Bills
1,603,100,047
67,375,801,583
1,020,707,362
Investments
Government securities
5,795,414,112
524,657,097
More than 5 years
9
6,834,376,764
6,363,179,763
1,087,174,207
Outside Bangladesh
Over one month but not more than three months
4,539,550,539
11,050,244,958
Sylhet
Inside Bangladesh
8.1 Residual maturity analysis of balance with other banks and financial institutions
Not more than one month
15,243,300,000
(252,320,124)
Loans against property
Current account with:
1,417,226,265
Bogra
Personal credit
Group Nostro
SCB Bombay ACU - USD
10
374,150,810
6,010,517,357
(17,843,870)
Face value of Government Bond
104,768,044
3,675,833,029
39,891,833,633
14,903,964,403
Government bonds:
1,335,987
6,695,136,690
35,279,471,958
15,145,423
Current account with:
Credit Suisse, Zurich - CHF
2014
Taka
16,976,025,299
Non Group Nostro
Westpac Banking Corporation - AUD
17,213,200,000
Unamortised amount of Treasury Bills
Market value
1,459,561
Commerce
2015
Taka
10.3.4 Loans and advances - geographical location wise classification
Face value and market value of Treasury Bills, Bangladesh Bank Bills and Government Bonds
MTM gain / (loss) from Treasury Bills - HFT
4
Electricity, gas and water
820,626,181
707,552,449
Treasury Bills and Bangladesh Bank Bills:
Outside Bangladesh
Nordea Bank Norge, OSLO- NOK
Manufacturing
-
10,988,403,064
41,000,130
National Bank Ltd
(Corporate customers only)
Agriculture, hunting, forestry and fishing
Over 5 years
44,428,180
10.3.3 Loans and advances - sector wise classification
-
Over 1 month but not more than 3 months
Inside Bangladesh
2014
Taka
Payable over six months
12
Consumer loans and advances - product wise classification
Credit cards
Overdraft
537,560,892
715,983,927
13,082,591,377
14,269,686,772
7,943,888
13,218,700
522,940,686
465,553,552
Mortgage Loan
6,066,249,872
6,610,210,638
Staff loans
2,298,350,835
2,137,074,329
Personal Loan
Loan to Professional
Auto loans
Revolving Loan
Cheque Purchased
Islamic - Credit Card Issuing
Islamic - Personal Finance
Islamic - Auto Finance
Islamic - Mortgage Finance
9.2 Tenor wise grouping of Treasury Bills, Bangladesh Bank Bills and Government Bonds
40,134
35,688
174,635
635,607
630,410,196
700,098,721
31,640,528
77,350,652
359,728,227
381,070,648
3,164,185,795
3,064,598,510
32,575,139,634
34,089,812,946
-
14,959,279,110
12,275,182,362
Fixed assets including premises, furniture and fixtures
Freehold premises
-
-
Fixed equipments
1,074,936,224
1,079,448,206
Computer and office equipments
1,209,934,864
1,185,316,676
485,020,450
480,557,789
Furniture and fittings
Motor vehicle
Capitalised leased vehicles
Less: Accumulated depreciation
52,162,687
35,491,013
547,061,988
666,195,488
3,369,116,213
3,447,009,172
(2,676,883,610)
(2,410,218,378)
692,232,603
1,036,790,794
Refer to Annexure - A for detailed analysis.
13
Other assets
Stationery and stamps in hand
Interest receivable - Loans and advances
Interest receivable - Central Bank and Government
Interest receivable - SCB Branches
Accrued commission receivable
Small and Medium Enterprises - product wise classification
16,080,000
Security deposits
Treasury Bills and Bangladesh Bank Bills
Business Overdraft
141,568,652
391,911,657
Held to Maturity (HTM) Securities
Loans against property
2,168,937,017
1,433,276,954
Advance rent
Prepaid expenses
3,648,865
3,260,899
533,833,468
1,076,479,000
1,116,461,534
1,280,569,621
215,090
98,304
430,823,641
280,098,897
11,820,660
16,820,660
1,103,655,193
1,199,135,871
30 Day Bangladesh Bank Bills
-
-
Business Instalment Loan
8,758,054,576
7,169,359,035
28 Day Treasury Bills
-
-
Term loans
121,734,460
188,161,982
Items in course of collection-cheques in till
Revolving loans
258,924,980
360,356,368
Suspense account
11,213,590
531,066
Loans against trust receipts
100,524,515
328,869,190
Sundry debtors
28,381,976
37,385,531
1,908,395,186
1,406,350,486
-
159,001,521
91 Day Treasury Bills
-
-
182 Day Treasury Bills
-
148,858,751
1 Year Treasury Bills
4,245,373,441
5,929,201,745
Import Invoice Finance
154,025,700
536,013,346
Intra branch balances with OBU Dhaka
4,245,373,441
6,078,060,496
Islamic - Instalment Finance-Murabah
101,884,061
215,629,782
Guarantee claim awaiting reimbursement
Islamic - Finance Against Property
245,298,739
242,872,073
Project awaiting completion (branch renovation)
-
-
Unrealised gain on forward contracts
-
-
Deferred tax asset
12,050,952,700
10,866,450,387
Islamic - Finance Against Trust Receipt
Held For Trading (HFT) Securities
30 Day Bangladesh Bank Bills
10,988,403,064
99,659,510
28 Day Treasury Bills
-
-
91 Day Treasury Bills
-
3,513,610,648
182 Day Treasury Bills
790,817,331
2,449,628,599
1 Year Treasury Bills
951,431,463
2,763,005,150
Total Treasury Bills and Bangladesh Bank Bills
12,730,651,858
8,825,903,907
16,976,025,299
14,903,964,403
Government Bonds
1 Year Bonds- Islamic
Overdraft
193,991,865
213,793,680
Loans against property
406,099,287
401,790,154
Business Instalment Loan
871,695,476
602,312,999
-
51,374,673
Revolving loans
464,411,091
515,808,766
Loans against trust receipts
139,354,512
35,802,738
Term loans
-
360,000,000
Cross border recharge receivable
Sundry receivable from Bangladesh Bank
Large Enterprises - product wise classification
Import Invoice Finance
Held to Maturity (HTM) Securities
6 Month Bonds- Islamic
Islamic - Import Invoice Financing
362,845,565
271,879,988
2,438,397,796
2,092,762,998
Others
Stationery and stamps in hand
Accrued commission receivable
3,923,210,347
5 Year Bonds
10,594,466,179
13,900,181,341
10 Year Bonds
5,270,518,038
246,291,220
15 Year Bonds
79,606,604
79,597,896
Cheque Purchased
146,487,129
313,551,163
20 Year Bonds
54,848,174
54,844,573
Credit Bill Negotiation
2,215,972,724
2,195,174,395
19,056,132,987
18,564,125,377
Interest receivable - SCB Branches
Export Invoice Finance
4,738,707,402
1,608,196,044
Sundry debtors
Import Invoice Finance
7,341,065,955
7,337,561,710
-
-
Import Loan
6,138,466,895
2,444,724,513
Loan Against Trust Receipt
4,998,814,753
7,526,179,320
Suspense account
Preshipment Finance
2,170,000,000
500,000,000
1 Year Bonds- Islamic
-
-
16,636,511,171
17,938,665,426
5 Year Bonds
5,985,164,961
4,028,110,088
10 Year Bonds
743,119,684
1,891,372,438
15 Year Bonds
390,906,961
303,100,642
20 Year Bonds
405,780,092
309,352,064
24,161,482,869
24,470,600,658
43,217,615,856
43,034,726,035
Total Government Bonds
Loans and advances to corporate customers -
Security deposits
product wise classification
Advance rent
Overdraft
3,318,921,846
3,342,279,210
Prepaid expenses
Term Loan
3,776,677,562
5,284,037,987
Interest receivable - loans and advances
Outward Bill
Interest receivable - Central Bank and Government
1,175,543,963
1,014,702,439
26,503,321
19,915,631
882,772,638
728,455,352
-
13,926
8,812,154,232
9,626,603,058
3,648,865
3,260,899
430,823,641
280,098,897
11,820,660
16,820,660
1,103,655,193
1,199,135,871
1,307,760
-
533,833,468
1,076,479,000
1,116,461,534
1,280,569,621
98,304
28,381,976
37,385,531
Intra branch balances with OBU Dhaka
1,908,395,186
1,406,350,486
Items in course of collection - cheques in till
1,514,311,625
2,318,207,977
Guarantee claim awaiting reimbursement
-
12,170,109
31,948,511,331
Islamic Import Invoice Finance
748,909,152
701,182,208
Deferred tax asset
Islamic Short Term Loan
500,000,000
385,000,000
Cross border recharge receivable
69,410,309
30,472,714
67,375,801,583
63,629,040,704
Islamic Term Loan
77,224,912
215,090
31,212,367,856
Short Term Loan
8,350,965
56,243,121
(non interest bearing)
-
2 Year Bonds
7,022,601
13.1 Other assets which are not capable of earning income
3,056,693,992
6 Month Bonds- Islamic
2,318,207,977
Other assets have been assessed by management and are not doubtful of recovery and hence no
provision is required.
2 Year Bonds
Held For Trading (HFT) Securities
1,307,760
1,514,311,625
Project awaiting completion (branch renovation)
Unrealised gain on forward contracts
Others
11,213,590
531,066
-
159,001,521
7,022,601
8,350,965
56,243,121
77,224,912
1,175,543,963
1,014,702,439
26,503,321
19,915,631
-
13,926
7,929,381,594
8,898,147,706
Notes to the Financial Statements
13.2 Deferred tax
Deferred Tax Assets (Taka)
2015
Fixed assets
2015
Taka
Deferred Tax Liabilities (Taka)
2014
2015
2014
150,208,398
110,552,940
-
-
-
-
(474,496,152)
(544,241,689)
Accrued interest on
DFCC Vardhana Bank LTD.
Bank Muamalat Malaysia Berhad
Government securities
UAE Exchange Center LLC
Gratuity provision
321,711,446
10,577,238
-
Indusind Bank LTD.
-
Operating lease rent adjustment
108,363,404
95,137,139
-
-
Actuarial loss during the year
299,232,606
129,187,057
-
-
Specific provision
296,028,109
669,248,065
-
-
Bank AlBilad
Hatton National Bank LTD.
Sampath Bank Ltd, Colombo
Equity and revaluation reserve
-
-
(337,145,748)
UCO Bank Treasury Branch, Mumbai
RHB Islamic Bank Berhed
National Development Bank PLC.
-
MCB Bank Ltd. Colombo
HTM and HFT securities
Meezan Bank Limited
1,175,543,963
1,014,702,439
(811,641,900)
(544,241,689)
Deferred tax assets / (liabilities) are calculated using the tax rate expected to apply in the periods in which
the assets will be realised or the liabilities settled, based on tax rates and laws enacted by the balance
sheet date. Following are the descriptions for individual items of the deferred tax asset / (liabilities) that
are recognised by the bank as temporary difference with expected realisation / (settlement).
1,444,575
11,558,494
42,473,530
23,000,635
-
-
6,843,259
5,758,896
9,344,525
13,243,664
24,214,725
26,410,488
1,710,601
2,320,120
53,388,613
36,006,567
1,441,043
975,872
80,245,805
88,011,996
General provision
On off-balance sheet exposures at 1%
126,534,518,262
1,265,345,183
1,243,804,672
108,273,628,403
1,879,343,569
1,884,811,390
On standard loans (excluding SMA)
at various rates
On special mention accounts (SMA)
at various rates
1,404,972,068
40,609,942
29,771,052
236,213,118,733
3,185,298,694
3,158,387,114
On sub-standard loans and advances
373,723,193
74,744,639
76,414,030
On doubtful loans and advances
152,669,059
76,334,531
87,891,980
3,006,943,856
3,006,943,856
4,046,200,096
3,533,336,108
3,158,023,026
4,210,506,106
Specific provision
On bad / loss loans and advances
Total provision required to be maintained
6,343,321,720
7,368,893,220
-
-
Total provision maintained
6,598,020,319
7,627,803,680
Nordea Bank Norge, Oslo
3
4
Excess / (deficit) provision at 31 December
254,698,599
258,910,460
Sonali Bank, NBR tax collection
-
66
2015
Taka
2014
Taka
Opening balance
651,341,216
567,366,071
Addition during the year
226,023,654
476,754,518
(209,067,191)
(378,284,675)
3,566,793
479,129
14,489,853
11,892,142
16.2 Interest suspense account
2,126,794
780,500
NMB Bank Ltd
21,914,934
1,881,210
Kotak Mahindra Bank Limited
11,617,281
40,580,553
464,757
2,802,817
Waived during the year
1,847,659
4,095,604
Written off during the year
Nations Trust Bank
Total Non Group Vostro
-
4,468,586
7,943,288
7,944,288
Amount of recovery during the year
(71,548)
(1,982,083)
(231,128,140)
(12,512,615)
437,097,991
651,341,216
16.3 Net defined benefit (asset) liability
9,277,474
-
789,754,895
720,989,457
816,482,561
1,179,954,062
Fair value of plan assets (Note - 16.3.1)
816,482,561
1,179,954,062
Net defined benefit (asset) / liability
Latest actuarial valuation of the gratuity scheme was performed by an actuary as at 31 December 2015.
The valuation reported a funding deficit of Taka 1,157 million.
Present value of defined benefit obligation (Note - 16.3.1)
Overdrawn Nostro Account Balances
SCB New York - USD
D.
51,268
2014
Taka
Svenska Handelsbanken
IBBL NCS
The Bank recognises deferred tax assets / (liabilities) on the temporary difference for gratuity provision
and actual payment to the recognised gratuity fund. The temporary differences would eventually be
eliminated on the payment of such provision to the fund.
313,725
2015
Taka
1,225,161
Bank AlJazira
C.
23,429,530
20,729,378
Citizens Bank International Limited
Gratuity provision
9,460,044
Base for provision
2015 only
Taka
4,679,253
Bank of Kathmandu Ltd
As per tax law, interest income on Government securities are taxed on cash basis whereas interest
income from Government securities have been accounted for on accrual basis in these financial
statements. This difference of interest income recognition has created temporary difference on which the
Bank recognises deferred taxes. This is an ongoing item and the outstanding deferred tax will be adjusted
upon maturity of the respective Government securities.
required to be maintained
1,066,635
Bank Islam Malaysia Berhad
Accrued interest on Government securities
2014
Taka
Bank of America Merrill Lynch
Druk PNB Bank Limited, Bhutan
As per tax rules, accounting depreciation is not tax allowable. However, tax authorities allow the tax
depreciation. Therefore temporary differences arise on such different depreciation methodology. The Bank
recognises deferred tax assets / (liabilities) on such differences. This is an ongoing item and there is a
difference between tax depreciation and accounting depreciation rate. However the outstanding amount
of deferred tax will be automatically released with the expiry of the economic useful life of the assets.
16.1.1 Adequacy of provision vis a vis provision
Agrani Bank Ltd.
Samba Bank limited
Fixed assets
2,466,680,282
1,239,152,000
(1,309,605,000)
(910,294,837)
1,157,075,282
328,857,163
16.3.1 Movement in net defined benefit (asset) liability
Margin Deposit from Banks
Operating lease rent adjustment
SCB London
46,694
-
Changes in the present value of defined benefit obligations
The Bank recognises deferred tax assets / (liabilities) on the temporary differences for actual contractual
liability on long-term premises lease rent as opposed to straight line expense recognition over the period of
lease term (BAS 17.25). This temporary difference will be settled or adjusted on the expiry of lease agreement.
Bank of China
626,315
-
Opening balance
1,239,152,000
874,797,000
KBC Bank NV, Belgium
288,662
-
Current service cost
134,401,000
91,952,000
961,671
-
Interest cost
127,333,282
97,678,000
Past service costs
719,087,000
-
Remeasurement losses / (gain)
445,936,000
303,326,000
Specific provisions on loans and advances
As per tax law, provisions for loans and advances are not allowable. As a result, provision charged to
profit or loss is added back while computing taxable income. However, for loans that are written off with
cases being filed the tax authority allows the amount of such loans as deductions from taxable income.
E.
Equity and revaluation reserve - HTM and HFT securities
2015
Taka
13.3 Movement of deferred tax assets / (liabilities)
Net deferred tax assets / (liabilities) as at 1 January
(Charged) / Credit to Profit and Loss account
Inside Bangladesh
5,074,669,922
8,715,357,590
Outside Bangladesh
4,313,903,313
4,225,949,309
9,388,573,236
12,941,306,899
470,460,750
(181,744,454)
60,541,912
523,018,147
129,187,057
363,902,063
470,460,750
(400,107,174)
Equity and revaluation reserve - HTM and HFT securities
(303,969,545)
793,285,054
-
393,177,880
(303,969,545)
(167,100,599)
129,187,057
226,077,281
(174,782,488)
Transfers to reserve
5,073,603,287
8,709,663,776
Unsecured
4,314,969,948
4,231,643,123
9,388,573,235
12,941,306,899
-
4,617,000,000
Foreign currency borrowing from Bangladesh Bank (EDF)
5,073,603,287
4,092,663,777
Others (Note 14.1)
4,314,969,948
4,231,643,122
9,388,573,236
12,941,306,899
Contribution received
Remeasurement (losses) / gain
Benefit paid
Closing balance
5,969,881,102
Payable within 1 to 3 months
1,946,865,850
1,982,813,373
Amount paid during the year
(6,602,834,244)
(5,907,474,535)
Payable within 3 to 12 months
2,464,935,813
1,476,442,036
Closing balance
3,457,048,475
4,740,097,765
-
-
914,977
-
9,388,573,235
12,941,306,899
17
Other reserves
General reserve
Deposits and other accounts
Revaluation reserve account
38,488,266,318
36,042,742,107
1,349,446,891
1,434,544,164
Savings deposits
48,132,356,047
42,863,248,887
Term deposits
40,733,064,549
41,365,955,413
Short term deposits
16,511,221,536
18,189,937,859
Other deposits (payable on demand)*
10,708,816,060
9,346,052,544
155,923,171,401
149,242,480,974
Equity reserve - amortisation on HTM securities
18
Opening balance
Profit remitted to Head Office
*Other deposits include BDT 40,096,905 which had remained unclaimed for more than 10 years. The
entire amount was subsequently deposited to Bangladesh Bank on 8 February 2016.
19
Secured cash credits
90,216,884,999
Personal Credit
Loans against property
Term loans
71,811,471
8,575,036
Payable within 6 to 12 months
8,425,043,804
11,655,227,562
54,002,008
28,836,933
Payable within 1 to 5 years
3,049,418,859
686,475,828
111,612,244
31,973,230
Payable within 5 to 10 years
283,678,293
78,047,438
SCB New York - BDT
1,046,600
2,778,206
155,923,171,401
149,242,480,974
SCB Singapore - BDT
15,467,776
13,338,485
SCB Singapore - SGD
21,835
-
838,956
278,895
13,230,947
16,840,180
98,988
99,108
SCB London - GBP
20,843,924
-
SCB Frankfurt - EUR
49,786,328
-
340,479,589
104,426,544
712,173,271
1,268,266,768
Specific provision for loans and advances (Note 16.1)
3,412,721,625
4,469,416,566
General provisions (Note 16.1)
3,185,298,694
3,158,387,114
437,097,991
651,341,216
Interest suspense account (Note - 16.2)
Net defined benefit (asset) liability (Note - 16.3)
1,157,075,282
328,857,163
Provision for income tax (Note - 16.4)
3,457,048,475
4,740,097,765
Accruals for performance bonus
439,348,120
411,702,579
Other provisions
204,497,890
140,819,109
Accrued expenditure
416,157,495
317,113,088
Suspense account
994,674,307
1,623,236,995
Non Group Vostro:
Sundry creditors
118,794,251
86,288,658
Current Deposit
Deferred tax liability (Note - 13.2)
811,641,900
544,241,689
Fixed Deposit
SCB Dhaka OBU - USD
2,367,291,232
2,367,291,232
2,226,273,059
Total Group Vostro
2,707,770,821
2,330,699,603
People's Bank Colombo, Sri Lanka
Seylan Bank Plc
The Standard Bank, South Africa
Bank of New Zealand
UAE Exchange Centre Llc
2,226,273,059
10,857,943
31,402,034
VAT payable
7,876,371
13,646,224
Tax deducted at source
24,619,000
24,624,000
Disputed tax on profit remittance
161,250
161,600
3,612,235
7,384,261
Askari Bank Ltd
61,486,149
38,995,385
Faysal Bank
68,960,915
58,716,568
Habib Metropolitan Bank
52,013,956
41,903,077
Soneri Bank ltd
17,234,391
11,794,533
Allahabad bank
-
1,120,654
Allied Bank Ltd-Karachi
13,130,451
10,202,764
United Bank Ltd-Karachi
83,577,205
62,442,279
-
1,497,000
1,677,455
1,722,053
753,642
564,642
4,581,897
5,943,044
59,258,288
52,517,462
922,446
923,446
Royal Bank of Scotland plc- London
Oman & UAE exchange centre & Co. Llc
Nordea bank Plc, Finland
Cimb Bank Berhad
Punjab National bank - ACU
Alliance Bank Malaysia Berhad
National Australia Bank Ltd
22,458,636
7,075,042
Public Bank - Berhad
1,741,880
445,264
RHB Bank Berhad Malaysia - BDT
2,156,597
1,077,070
OCBC Bank Malaysia - BDT
1,232,065
718,905
Hong Leong Bank Malaysia - BDT
2,041,431
1,283,440
Affin Bank
7,416,850
3,151,880
United Overseas Bank (Malaysia) BHD - BDT
Gulf Bank KSC Kuwait - BDT
Ahli United Bank K.S.C.
Kuwait Finance House
Emirates NBD Bank PJSC
Ahli United Bank BSC
Nordea Bank Norge ASA
Barclays Bank PLC, London
Credit Agricole Corporate & Investment Bank
22,185
22,535
244,098
1,434,914
739,966
809,664
1,958,580
1,959,580
23,034,023
4,318,177
1,078,857
195,115
30,511
267,040
5,000,453
5,001,453
-
21,384
20,351,589,014
(740,700,000)
(8,128,894,118)
9,303,305,731
11,770,562,210
32,555,862,837
23,993,257,106
62,111,471
141,012,837
3,529,598,281
3,812,287,925
Revolving loans
490,714,524
366,836,745
Loans against trust receipts
457,017,339
696,082,156
66,714,771
93,090,194
948,737,455
1,108,893,957
1,286,638,268
1,281,922,127
428,508,714
615,519,275
Islamic auto finance
56,376,253
72,313,031
Islamic personal finance
37,433,468
80,132,899
406,718,623
399,739,899
House building loan
Overdraft
Islamic mortgage
Islamic SME finance against property
34,477,949
42,121,305
266,941
17,485,306
Islamic import invoice financing
42,550,373
43,304,605
Islamic corporate short term finance
51,684,375
3,352,709
1,435,524,617
1,373,356,584
Islamic finance against trust receipt
Bills discounted and purchased
Money market loan
7,000,556
109,032,556
22,713,441
29,335,768
Nostro account balances
3,032,047
7,248,413
Bangladesh Bank - FCY
5,681,180
4,077,202
115,952,701
103,324,201
13,666,780,012
15,571,836,947
2,162,987,075
4,124,670,009
Bank placement
Reverse repo
88,166,937
124,904,938
5,274,817,522
5,163,712,522
-
159,001,521
Fixed deposit
Unamortised fees
10,948,320
176,119,522
Call deposit
Unrealised loss on forward contracts
53,821,716
28,456,037
20
23,993,257,106
268,775,441
87,978,530
Accrued bonus points
502,518,255
4,902,591,812
182,753,383
Guarantee claim awaiting reimbursement
278,102,853
249,443,397
330,056,894
Credit cards
Interest payable
201,049,286
3,847,269,771
Auto loans
Other liabilities
344,496,960
570,188,507
(114,049,601)
Interest income
101,308,268,100
186,653,248
735,905
22,630,211
Movement in profit and loss account balance has been detailed in statement of changes in equity.
Net profit for the year
Obligation under finance lease
735,905
(207,431,414)
Appropriation of net income
20,544,350,262
SCB Dubai (International Financial Center) - BDT
4,677,691,198
5,319,784,954
26,061,494,885
SCB Dubai - BDT
910,294,837
4,740,097,765
18,719,377,768
SCB Kuala Lumpur - BDT
1,309,605,000
Provision made during the year
Bills payable
16
(650,163)
(128,601,000)
Opening balance
24,137,384,577
SCB London - BDT
45,829,000
(199,229,000)
2,859,168,245
Payable within 1 to 6 months
SCB Pakistan - USD
113,152,000
3,029,139,550
Payable within 1 month
SCB Colombo - ACU USD
97,949,000
454,757,000
16.4 Provision for income tax
1,706,471
1,718,512
828,445,000
97,947,000
Payable within 1 month
Payable on demand
SCB Bombay - ACU USD
910,301,000
6,622,883,245
Current and other accounts
Current Deposit
B.
Opening balance
Actuarial gain
Group Vostro:
(128,601,000)
1,239,152,000
1,946,717,045
Payable over 5 years
15
(199,229,000)
2,466,680,282
Changes in the fair value of plan assets
15.1 Residual maturity grouping of deposits and other accounts (other than bank deposit)
14.1 Others
A.
Closing balance
Payable on demand
Payable within 1 to 5 years
Borrowings from other banks, financial institutions and agents
Repo (Annex G)
Benefit paid
Expected returns on plan assets
Secured
13.3.1 Deferred tax recognised in equity
Deferred tax @ 42.5 %
4,231,643,122
14.4 Borrowings from other banks, financial institutions and agents - residual maturity grouping
2014
Taka
(167,100,599)
Net balance as at 31 December
Actuarial gain / (loss) for gratuity
4,314,969,948
14.3 Borrowings from other banks, financial institutions and agents - secured and unsecured
Deferred tax relating to amortised discount on Held to Maturity (HTM) securities and the revaluation of
Held for Trading (HFT) securities is recognized directly in other reserves as a part of equity and is
subsequently recognized in the profit and loss account on the maturity of the securities. The deferred tax
recognized against this will be fully reversed at the maturity of all related securities.
Recognised in equity (Note- 13.3.1)
Total Vostro (A+B+C+D)
14.2 Borrowings from other banks, financial institutions and agents - inside and outside Bangladesh
As per the provision of BAS 12, the Bank recognises a deferred tax asset on specific provision relating to loan
customers other than retail and small enterprise customers for the deductible temporary difference to the
extent it is probable that taxable profit will be available against which such temporary difference can be utilised.
14
Notes to the Financial Statements
Notes to the Financial Statements
Interest expense on deposits and borrowings
Savings account
376,483,332
602,637,371
1,108,690,445
1,303,198,968
34,168,184
131,557,277
Money market deposit
14,369,756
45,765,385
Funds held from clients
401,589,279
625,104,016
Repo
12,411,789
20,217,966
Rental payable
254,972,716
223,852,092
Nostro account balances
5,570,509
257,130
Adjustment due to use of Bangladesh Bank conversion rate
Others
179,474,638
46,169,483
22,019,277,346
24,851,567,145
Deposit insurance premium
Others
21
16.1 Provision for loans and advances and
Gain / (loss) arising from disposal of government securities
General provision
Opening balance
Provision charged / (released) during the year
3,158,387,114
3,174,753,626
5,371,070
(207,182,153)
Provision on off-balance sheet exposures charged / (released)
21,540,510
190,815,641
Charge in profit and loss account
26,911,580
(16,366,512)
3,185,298,694
3,158,387,114
Total general provision (a)
Dividend from CDBL shares
22
Specific provision
Opening balance
4,469,416,566
4,111,954,121
Add: Provision made during the year
1,209,130,223
1,179,560,541
(592,262,290)
(535,977,168)
616,867,933
643,583,373
Less: Release / Recoveries during the year
Charge in profit and loss account
Less : Written-Off during the year
Add : Transfer from other provisions Translation increase (decrease)
(1,673,693,193)
212,594
98,691,561
107,118,563
11,654,203
17,456,537
3,785,529,594
6,221,277,393
5,247,052,154
5,576,757,043
758,420,780
1,289,099,308
Income from investments
Interest from Government Bonds and Treasury Bills
off-balance sheet exposures
241,433
-
22,500,000
6,005,472,934
6,888,356,351
Commission, exchange and brokerage income
Commission income**
3,652,542,946
3,384,909,146
Exchange income
2,308,197,674
2,743,375,625
5,960,740,620
6,128,284,771
**Commission Includes export income BDT 452,933,544 (2014: BDT 532,663,118) and custodial service
income for stock exchange BDT 113,480,722 (2014: BDT 117,414,384).
23
Other operating income
Gain on sale of fixed assets
Miscellaneous income
7,211,417
941,827,462
15,941,796
29,490,034
23,153,213
971,317,496
263,852,829
(286,165,947)
24
Repair, maintenance and depreciation
130,319
45,019
Total specific provisions (b)
3,412,721,625
4,469,416,566
Repair and maintenance
209,373,166
Total provisions (a+b)
6,598,020,319
7,627,803,680
Depreciation (Annexure - A)
349,504,547
385,633,384
558,877,713
649,486,213
Notes to the Financial Statements
Notes to the Financial Statements
2015
Taka
25
Other expenses
Non lending losses
49,644,158
5,586,773
Travelling and transportation
86,085,001
90,621,150
242,680,725
257,232,644
Support services
26
Subscription
6,454,773
3,842,440
Entertainment
76,863,193
76,742,129
Security services
54,829,485
66,851,470
Computer expenses
74,259,080
18,672,053
Interest on leases
41,822,456
66,590,045
Sundry expenses
640,793,532
627,589,498
1,273,432,403
1,213,728,202
2,193,451,568
2,572,999,553
Balance with Bangladesh Bank
14,017,698,172
13,201,402,322
Balance with other banks and financial institutions
21,987,336,340
18,665,191,123
38,198,486,080
34,439,592,998
Acceptances and endorsements
42,082,974,984
50,750,185,710
Letters of guarantee (Note 27.1)
28,860,028,579
27,656,280,400
Irrevocable letters of credit
30,197,533,049
29,488,493,006
Bills for collection
11,844,709,170
10,955,588,876
Cash and cash equivalents
Cash in hand (including foreign currencies)
27
2014
Taka
Contingent liabilities and commitments
Other commitments
Forward contracts
13,549,272,480
17,022,759,090
126,534,518,262
135,873,307,082
27.1 Claims against the Bank not acknowledged as loan for which the Bank is contingently liable in respect of
guarantee issued favouring:
Directors
-
Government
-
-
24,348,940,268
21,968,191,234
Bank and financial institution
28
-
Others
4,511,088,311
5,688,089,166
Total
28,860,028,579
27,656,280,400
Tax provision on head office allocated expenses
The Bank claims full amount of Head Office Allocated Expenses (HOAE) as deductible expense for tax
purposes in line with provisions of the Double Taxation Avoidance Agreement between the Government of
Bangladesh and United Kingdom. The claim has been disallowed by the NBR. The matter was pending
with the High Court division of the Supreme Court of Bangladesh for a number of years.
"On 10 January 2013 High Court division of the Supreme Court ruled (on Income Tax reference application
no. 190 of 2009 and Income Tax reference application no. 345 of 2008 and 190 of 2009) in favour of SCB
that full claim is deductible for tax purposes.
29
Related party transactions
29.1 Related parties
The related parties of the Bank include Standard Chartered (SC) Plc, other group entities, key management
personnel of SC Plc and the Bank as well as their close family members and its post-employment benefit
plans.
The Bank, not being incorporated in Bangladesh, operates in Bangladesh under the banking licence issued
by Bangladesh Bank and therefore the key management personnel of the Bank for the purpose of BAS 24
are defined as those persons having authority and responsibility for planning, directing, controlling the
Bank, being members of the Country Management Team (CMT) of the Bank, and close members of their
families and companies they control, or significantly influence, or for which significant voting power is held.
29.2 Transactions with group entities
The Bank provides and receives certain banking and financial services to / from entities within the Group.
As at the year end the balances with these entities are disclosed in Note - 8 under Group Nostro and in
Note - 14.2 under Group Vostro and Overdrawn Nostro Account Balances.
The disclosure of the year end balance is considered to be the most meaningful information to represent
transactions during the year. The outstanding balances include deposits kept with or by the Bank and arise
in the ordinary course of business and are on substantially the same terms as for comparable transactions
with third parties.
29.3 Transactions with key management personnel of the Bank and of its parent (SC Plc)
During the year, transactions with the key management
personnel of the Bank include the following:
2015
Taka
2014
Taka
Salaries and other short-term employee benefits
151,174,144
149,518,614
Bonuses paid or payable
59,530,106
75,989,807
Post employment benefits - provident fund and gratuity fund
14,979,801
10,799,450
225,684,051
236,307,872
Loans to senior management (CMT) of the Bank amounted to Tk. 172,933,912 as at 31 December 2015
(2014: Tk. 125,126,971) and were at rates applicable to employees of the Bank. No impairment losses have
been recorded against balances outstanding during the period with key management personnel, and no
specific allowance has been made for impairment losses on balances with key management personnel and
their immediate relatives at the period end.
29.4 Transactions with post employment benefit plans
The Bank has two post employment benefit plans, a provident fund which is of the nature of a defined
contribution scheme and a funded gratuity scheme which is of the nature of a defined benefit plan as
described in Note 4.14 Employee benefits. The Bank contributes to the provident fund in accordance with
the requirements of the Trust Deed of the fund while its contributions to the gratuity scheme are
determined by a professional actuary.
The responsibility for management and administration of these plans resides with the Trustees of these
schemes. The Trustees are selected from among employees of the Bank. The Bank does not charge these
schemes any fees for management or administrative purposes.
In 2015, the Bank contributed BDT 454,757,000 to the gratuity fund and BDT 113,195,705 to the provident
fund. As at 31 December 2015, the provident fund had a balance of BDT 77,765,647 (2014: BDT
51,804,831) and the gratuity fund had a balance of BDT 405,326,140 (2014: BDT 7,491,718) deposited with
the Bank. The Bank pays interest at the rate of 5% on these deposits. Interest expense incurred by the
Bank on deposit maintained with it in 2015 by the provident fund amounted to BDT 2,456,900 (2014: BDT
2,924,989) and on deposit maintained with it in 2015 by the gratuity fund amounted to BDT 3,051,035
(2014: BDT 2,517,888).
29.5 Transactions with the off-shore banking unit
The off-shore banking unit (OBU) operates under a separate licence issued by Bangladesh Bank.
Transactions with the off-shore banking unit comprise of inter-unit fund transfers in the normal course of
business as well as the payment of certain expenses by the Bank on behalf of the OBU. These include
income taxes paid by the Bank on behalf of OBU as well as expenses incurred for administrative purposes.
The balance of the OBU with the Bank at the year end is disclosed in Note 13 Other Assets. The year end
balances of transactions with OBU are disclosed in Notes - 8, 13 and 14.
30
General
30.1 Reconciliation of books of accounts
There were no unidentified balances in the inter-branch accounts (inside and outside Bangladesh) as at 31
December 2015. Of these the total number of unadjusted entries were 16 amounting to a total of EUR
257.56 and JPY 2,086. Entries up to 31 December 2015 are yet to be adjusted.
The Group credit risk policy framework
•
Governance and authorities
•
Risk appetite and evaluation of facilities
•
Key lending constraints, higher risk sectors and sustainability risk
•
Risk rating systems
•
Facility structures
•
Lending to banks and non-banks
•
Personal lending
•
Corporate and commercial lending
•
Portfolio management and stress testing
•
Monitoring, control and the management of problem exposures
•
Impairments and allowances
At the heart of these processes is a robust framework of accountability. The Bank operates a system of
personal credit authorities, rather than credit committee structures. However, the Bank has set up a
Country Risk Committee (CRC) comprising most of the members of the Asset and Liability Management
Committee (ALCO) and other risk related function Heads to manage various risks within the bank including
credit risk. Relationship managers are held accountable for both the profitability and growth of their loan
portfolios as well as the losses that may arise within them.
30.2.2 Internal control and compliance
Standard Chartered Bank Group intranet (iConnect) is the host of relevant policies and procedures, laws,
regulations, Group code of conduct and Group requirements applicable to its banking activities across the
globe. Group policies are to be read in conjunction with Country Addendum which covers any country
specific requirements. The Group Operational Risk Manual recognises compliance risks under its risk
management framework and has implemented necessary policies and procedures to promote good
compliance culture, practices and standards which are outlined in the Group Code of Conduct.
The Bank has a robust Business Continuity and Disaster Recovery Plan in place to ensure smooth
business in case of any major disaster. This plan is reviewed and tested as per yearly schedule.
Technology team also facilitates information security awareness and takes necessary measures to prevent
data leakage. There are different global teams supporting country technology. Software development /
enhancement and production system supports are provided by these teams.
30.2.7 Audit committee
According to BRPD circular no. 12 dated 23 December 2002, all banks are advised to constitute an audit
committee comprising members of the Board. The audit committee will assist the Board in fulfilling its
oversight responsibilities including implementation of the objectives, strategies and overall business plans set
by the Board for effective functioning of the Bank. The committee will review the financial reporting process,
the system of internal control and management of financial risks, the internal audit process, and the Bank's
process for monitoring compliance with laws and regulations and its own code of business conduct.
Being a branch of a foreign bank, the Bank does not have a local Board of Directors from whom to select
an audit committee. However, the Bank has received a dispensation from Bangladesh Bank on 24 March
2011 with regards to this requirement. At the country level, the Bank has the Country Management Group,
Business Operations Risk and Country Operations Risk Forums which are responsible and empowered to
oversee the overall control issues of the bank. These committees review / monitor the business risks and
control issues and provide necessary directives in this regard as well as escalate significant issues to the
Group Audit and Risk Committee through the relevant regional committees. The Bank has an internal audit
department. In addition to this, the Bank is subject to audit by the internal auditors of the Group.
30.2.3 Foreign exchange risk
The Bank has developed strategies based on Bangladesh Bank regulations and its internal policies to
manage foreign exchange risk from dealings in foreign exchange products such as spot, forward and
derivatives with clients. Foreign exchange risk is defined as the potential change in earnings arising due to
change in market price and the position in foreign currencies. Foreign exchange risk is managed through
various risk limits which are monitored and reported daily to management and through several regulatory
reports. The proper escalation of any management directive is also tracked and any action plans are
monitored by the Bank’s risk management structure. Changes in policy, limits and regulations are
escalated and adhered to timely. Settlement of foreign exchange trades and management of nostro
accounts are also subject to limits set by management. These are also tracked and escalated as part of the
overall foreign exchange risk management process.
30.2.4 Asset liability management risk
For better management of asset and liability risk, the Bank has an established Asset & Liability Committee
(ALCO) which meets at least once in a month. The role of ALCO is to maintain a strong balance sheet
(Capital & Liquidity) which supports business objectives and to comply with regulatory requirements and
Group policy. The members of ALCO as at year end were as follows:
• Chief Executive Officer (Chairman)
• Chief Financial Officer (Secretary)
• Country Chief Risk Officer
• Head of International Corporates
• Head of Financial Markets
• Head of Financial Institutions
• Head of Retail Banking
• Head of Commercial Banking
• Chief Information Officer
The ALCO's primary function is to ensure the efficient implementation of balance sheet management
policies as directed by Bangladesh Bank, Group ALCO and its sub committees and also to review reports
on liquidity, interest rate risk and capital management and ensure adherence to applicable limits, policies
and regulatory requirements. ALCO regularly reviews the Bank’s overall asset and liability position, forward
looking asset and liability pipeline, overall economic position, the Bank's liquidity position, capital adequacy,
balance sheet risk, interest rate risk and makes necessary changes in its mix as and when required.
The Bank has a Group specified liquidity and funding ratio to be maintained to ensure financial flexibility to
cope with unexpected future cash demands. ALCO monitors the liquidity and funding ratio on an ongoing
basis and ascertains liquidity requirements under various stress situations. In order to ensure liquidity
against all commitments, the Bank reviews the behavioural patterns of liquidity requirements. The Bank has
an approved Liquidity Contingency Plan (LCP) which is reviewed and updated on an annual basis by the
ALCO. All regulatory requirements including CRR, SLR and capital adequacy are reviewed by ALCO.
30.3 The bank has sought external legal opinion, whereby it was stated that there is significant ambiguity
around the inclusion of Banking Institutions within the scope of Chapter XV: Workers’ Profit Participation
Fund (WPPF) under the Bangladesh Labour Act, 2006 (the ‘Act’) and the subsequent amendments thereof.
As per the Act and amendments thereof, an employer is required to pay 5% of its net profit (as defined
under the Act) to the 1) Workers’ Participation Fund 2) Workers’ Welfare Fund and 3) Labour Trust
Foundation Fund for further appropriate disbursement of the funds to all members (i.e., ‘Beneficiaries’, as
defined under the Act) as prescribed under the Act.
As per the external legal opinion sought by the Bank, the inclusion of Banks within the scope of the WPPF
under the Bangladesh Labour Act, 2006 is in contradiction with the relevant provisions under the bank
Companies Act, 1991. These ambiguities are yet to be settled and the Bank is seeking clarifications from
appropriate Authorities. On the basis of the facts currently known and external legal opinions, management
believes that the possibility of a legal obligation for payments out of WPPF is low at the current stage and
hence, no provision has been made for the same.
30.4 Post balance sheet events
There were no material events that occurred after the balance sheet date, which could affect the values
stated in the financial statements or warrant disclosure.
30.5 The net amount of foreign currency exposures/position as at 31 December 2015 was BDT (103,932,901).
30.6 The figures appearing in these financial statements have been rounded off to the nearest BDT.
30.7 Last year's figures have been rearranged, wherever necessary, to conform to current year's presentation.
30.8 The assets and liabilities (except for the items mentioned in Annexure - B) as of 31 December 2015 in
foreign currencies have been converted into Taka at the following rates:
2015
Taka
30.2.5 Prevention of money laundering and terrorist financing
The Bank follows the mandatory Group-wide standards for anti money laundering (AML) and combating
financing of terrorism (CFT) based on the requirements of the UK Financial Conduct Authority and Prudential
Regulation Authority and industry guidance such as the Joint Money Laundering Steering Group (JMLSG). The
Bank has amended these standards to conform to local Money Laundering Prevention Act 2012, Anti-Terrorism
(Amendment) Act 2013 and Bangladesh Bank Guidance Notes / Directives (issued time-to-time).
The Bank has Country-Addenda and operational procedures, e.g. Departmental Operating Instructions
(DOI), on AML and CFT that address the requirements of local legislation and regulations. These
operational procedures are also revised time-to-time and formally reviewed by respective stake-holders
including compliance team on an annual basis and tabled in Country Operational Risk Committee (CORC)
or Business Operational Risk Forum (BORF) as appropriate to ensure senior management support.
The Bank has robust customer due diligence (CDD), transaction monitoring procedures & automated
systems that are under dual control and continuous surveillance by a dedicated team. Besides this, both
local and global internal audit teams conduct periodic reviews / independent quality assurance to ensure
the Bank is in compliance with the regulatory standards.
It performs risk based due diligence on all new customers, including verification of their identity and, where
appropriate, an assessment of the source of their wealth and funds. It uses sophisticated software systems
to monitor transactions for suspicious behaviour associated with AML and CFT.
The Bank provides training for its employees on its customer due diligence policies and procedures,
including how to detect and report suspicious activity. It also has mandatory on line training modules on
AML and CFT which all staff have to complete with pass marks and annual refresher training needs to be
done by all customer facing and relevant processing staff. There are standard record retention and retrieval
procedures to assist regulatory investigations in this regard.
GBP 1
EUR 1
USD 1
CAD 1
AUD 1
SGD 1
SAR 1
MYR 1
DKK 1
NOK 1
HKD 1
SEK 1
JPY 1
CHF 1
=
=
=
=
=
=
=
=
=
=
=
=
=
=
2014
Taka
116.4234
85.7495
78.5000
56.5562
57.4581
55.5752
20.9110
24.4793
11.4926
8.9198
10.1278
9.3490
0.6521
79.2569
121.0680
94.7853
77.9500
67.0437
63.6774
58.8880
20.7701
24.4793
12.7342
10.4793
10.0492
9.9626
0.6513
78.8050
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
Abrar A. Anwar
Chief Executive Officer, Bangladesh
Dhaka, 28 April 2016
Schedule of fixed assets including premises, furniture and fixtures
Standard Chartered Bank
Annexure - A
Bangladesh Branches
Schedule of fixed assets including premises, furniture and fixtures
as at 31 December 2015
Particulars
Balance as at
1 January 2015
Own assets
Free hold premises
Fixed equipments
Computer and office equipment
Furniture and fittings
Motor vehicle
Sub-total
Leased assets
Capitalised leased vehicles
Sub-total
Total 2015
Additions
during the
year
Cost
Disposals/
adjustments during
the year
Figures in Taka
Depreciation
Balance as at
31 December 2015
Balance as at
1 January 2015
Charge for the
year
Balance as at
31 December
2015
On disposals
/adjustments
Particulars
Own assets
Free hold premises
Fixed equipments
Computer and office equipment
Furniture and fittings
Motor vehicle
Sub-total
Leased assets
Capitalised leased vehicles
Sub-total
Total 2014
Net book value
as at
31 December
2015
1,079,448,206
1,185,316,676
480,557,789
35,491,013
2,780,813,684
1,380,000
24,618,188
4,462,661
16,671,674
47,132,523
(5,891,982)
(5,891,982)
1,074,936,224
1,209,934,864
485,020,450
52,162,687
2,822,054,225
824,056,062
963,019,361
242,750,792
11,257,444
2,041,083,659
87,959,913
80,440,921
67,440,182
8,400,014
244,241,030
(3,994,591)
(3,994,591)
908,021,384
1,043,460,282
310,190,974
19,657,458
2,281,330,098
166,914,840
166,474,582
174,829,476
32,505,229
540,724,127
666,195,488
666,195,488
3,447,009,172
47,132,523
(119,133,500)
(119,133,500)
(125,025,482)
547,061,988
547,061,988
3,369,116,213
369,134,719
369,134,719
2,410,218,378
105,263,517
105,263,517
349,504,547
(78,844,724)
(78,844,724)
(82,839,315)
395,553,512
395,553,512
2,676,883,610
151,508,476
151,508,476
692,232,603
Schedule of fixed assets including premises, furniture and fixtures
as at 31 December 2014
Balance as at
1 January 2014
Additions
during the
year
Cost
Disposals/
adjustments during
the year
Figures in Taka
Depreciation
Balance as at
31 December 2014
Balance as at
1 January 2014
Charge for the
year
Balance as at
31 December
2014
On disposals
/adjustments
Net book value
as at
31 December
2014
170,665,000
982,459,579
982,930,052
289,009,438
14,808,151
2,439,872,220
96,988,627
202,386,624
191,548,351
25,982,862
516,906,464
(170,665,000)
(5,300,000)
(175,965,000)
1,079,448,206
1,185,316,676
480,557,789
35,491,013
2,780,813,684
175,981
734,326,636
858,804,902
187,345,987
5,350,739
1,786,004,245
10,667
89,729,426
104,214,459
55,404,805
6,260,038
255,619,395
(186,648)
(353,333)
(539,981)
824,056,062
963,019,361
242,750,792
11,257,444
2,041,083,659
255,392,144
222,297,315
237,806,997
24,233,569
739,730,025
795,143,488
795,143,488
3,235,015,708
2,050,000
2,050,000
518,956,464
(130,998,000)
(130,998,000)
(306,963,000)
666,195,488
666,195,488
3,447,009,172
339,188,447
339,188,447
2,125,192,692
130,013,989
130,013,989
385,633,384
(100,067,717)
(100,067,717)
(100,607,698)
369,134,719
369,134,719
2,410,218,378
297,060,769
297,060,769
1,036,790,794
Balance with other banks and financial institutions (Outside Bangladesh)
Standard Chartered Bank
Bangladesh Branches
Annexure - B
Balance with other banks and financial institutions (Outside Bangladesh)
as at 31 December 2015
30.2.1 Credit risk
•
30.2.6 Information technology
The Bank has local IT team to provide technology services and support to all the departments of the Bank. IT
team manages Country Data Centre, desktop and server support, application support and network support. It
also manages all technology projects, vendor management, cost and IT risk based on the Bank's standards and
processes. All day to day activities are performed by online problem, change and request management system.
IT team provides monthly reports to local and Group Senior Managements, which cover the following:
•
Major technology projects
•
Major incidents
•
Technology activities and achievements
•
Technology cost
•
Current technology risks
Compliance is recognised as one of the core functions in the Internal Control and Compliance Guideline
under Managing Core Risks Guideline of Bangladesh Bank. The compliance function in the Bank is aligned
with this guideline. The compliance team is adequately resourced and the Head of Compliance reports to
Head of Regional Compliance and Chief Executive Officer. The unit ensures the Bank’s local level activities
are performed in full compliance with local laws and regulations. It is responsible to provide guidance and
clarification relating to regulatory directives. It also supports in staff training on regulatory issues. The team
has necessary independence in terms of interpretation of rules and regulations and can restrict
transactions that are not in line with regulatory directive. The compliance function supports country
management to ensure regulatory compliance in all its activities.
Within the Bank there are three lines of defence in the overall internal control environment. Group Internal Audit
(GIA) operates as the third line of defence in providing independent assurance of the effectiveness of
management’s control of its own business activities (the first line) and of the processes maintained by the Risk
Control Functions (the second line). GIA provides assurance that the overall system of control effectiveness
operates as required within the Risk Management Framework. In addition to its audit planning and execution,
GIA works in a co-ordinated manner with the Group's other control functions to determine the overall
adequacy of controls throughout the Group, placing emphasis on risk identification and design of those
controls. The Group Head of Internal Audit reports to the Group Chief Executive Officer and the Chairman of
the Audit Committee. In the country, there is a Country Head of Audit who reports to regional Head of Audit,
South Asia and locally to the CEO for governance purpose only. This ensures that GIA has the necessary
authority to exercise judgement, express opinions and make recommendations in an impartial manner.
30.2 Core risk management
Being branches of Standard Chartered Plc ("Group"), Standard Chartered Bank (SCB), Bangladesh
Branches ("the Bank") has historically sought to maintain a conservative, yet constructive and competitive
credit risk culture. This has served the Bank well through successive economic cycles and remains valid
today. This culture is determined and underpinned by the disciplined credit risk control environment which
the Bank has put in place to govern and manage credit risk, and is embodied in the formal policies and
procedures adopted by the Bank. These are articulated through SCB credit policies together with
Bangladesh Bank regulations and guidelines. Formal policies and procedures cover all areas of credit
lending and monitoring processes including:
Notes to the Financial Statements
Currency
name
Particulars
Non Group Nostro
Royal Bank of Canada, Toronto
Nordea Bank Norge, OSLO
Credit Suisse Zurich
Svenska Handelsbanken
Westpac Banking Corporation
Al Rajhi Bank
Total
2015
Foreign
currency
CAD
NOK
CHF
SEK
AUD
SAR
Exchange
rate
172,558
1
16,879
11,567
130,977
1
2014
Equivalent
local currency
56.54
8.93
79.15
9.33
57.43
0.66
9,757,128
4
1,335,987
107,972
7,522,450
0
18,723,541
Foreign
currency
112,958.05
139,000.05
1,329,525.97
74,475.21
41,848.83
-
Exchange
rate
67.04
10.48
78.81
9.96
63.68
20.77
Balance with other banks and financial institutions (Outside Bangladesh)
Standard Chartered Bank
Bangladesh Branches
Equivalent local
currency
7,580,457
1,459,561
104,768,044
744,704
2,663,192
117,215,958
Annexure - B
Balance with other banks and financial institutions (Outside Bangladesh)
as at 31 December 2015
Particulars
Group Nostro
SCB HongKong -HKD
SCB Nepal Nostro -USD
SCB London -GBP
SCB Bombay ACU -EUR
SCB Bombay ACU -USD
SCB Karachi ACU -USD
SCB Colombo ACU -USD
SCB Frankfurt -EUR
SCB Dhaka OBU -USD
SCB London -USD
SCB Singapore -SGD
SCB Tokyo -JPY
SCB London -USD
SCB Mauritius -USD
Total
Currency
name
HKD
USD
GBP
EUR
USD
USD
USD
EUR
USD
USD
SGD
JPY
USD
USD
Foreign
currency
2,550
136,831
26,801
4,809,877
1,203,526
356,212
172,000,000
100,000,000
72,730
479,666
-
2015
Exchange
rate
10.13
78.52
116.38
85.68
78.52
78.52
78.52
85.68
78.52
78.52
55.57
0.65
78.52
78.52
Equivalent local
currency
25,829
10,743,970
2,296,260
377,671,533
94,500,833
27,969,760
13,505,440,000
7,852,000,000
47,453
37,663,374
21,908,359,012
Foreign
currency
102,390
105,887
2,143,471
49,491
2,307,011
1,287,821
748,338
1,626,995
227,000,000
106,120
3,615,879
438,440
-
2014
Exchange
rate
10.05
77.95
121.07
94.79
77.95
77.95
77.95
94.79
77.95
77.95
58.89
0.65
77.95
77.95
Equivalent local
currency
1,028,918
8,253,920
259,714,662
4,691,874
179,831,514
100,385,664
58,332,960
154,243,618
17,694,650,000
6,256,765
2,360,222
34,176,414
18,503,926,531
Disclosures on Risk Based Capital (Basel III)
Liquidity Statement
Standard Chartered Bank
Annexure - C
Bangladesh Branches
Qualitative Disclosures:
Liquidity Statement
(Asset and Liability Maturity Analysis)
as at 31 December 2015
Maturity up to
1 month
Particulars
Maturity within
1 to 3 months
Assets
Cash in hand
16,211,149,740
Balance with Bangladesh Bank, agent bank,
other banks and financial institutions
21,987,336,340
Money at call or short notice
Maturity within
3 to 12 months
-
-
C. Capital Adequacy
The Bank's approach to capital management is driven by its desire to maintain a strong capital base
to support the development of its business, to meet regulatory capital requirements at all times and
to maintain good credit ratings.
Maturity within
1 to 5 years
-
Maturity over
5 years
-
Strategic, business and capital plans are drawn up annually covering a three year horizon and are
approved by the Country Management Team (CMT). The capital plan ensures that adequate levels
of capital and an optimum mix of the different components of capital are maintained to support its
strategy.
Total
-
16,211,149,740
21,987,336,340
-
-
-
-
-
-
-
-
The capital plan takes the following into account:
-
•
Regulatory capital requirements
•
Forecast demand for capital to support the credit ratings
Increases in demand for capital due to business growth, market shocks or stresses
Investments
10,988,403,064
707,552,449
24,169,984,045
22,902,935,349
1,443,790,248
60,212,665,155
•
Loans and advances
39,362,899,480
25,566,064,234
20,414,176,360
22,617,348,712
6,479,802,927
114,440,291,713
•
Available supply of capital and capital raising options
•
Internal controls and governance for managing the Bank’s risk, performance and capital
-
692,232,603
692,232,603
-
1,175,543,961
8,812,154,232
9,791,369,739
222,355,829,783
914,978
9,388,573,236
283,678,293
155,923,171,401
Fixed assets including premises,
furniture and fixtures
-
Other assets
-
7,636,610,271
Non-banking assets
Total assets
-
-
-
96,186,398,895
26,273,616,683
44,584,160,405
4,975,856,595
1,946,865,850
2,464,935,813
Deposits and other accounts
125,445,652,677
12,250,794,610
14,893,626,962
3,049,418,859
Provision and other liabilities (including equity)
Total liabilities
Net Liquidity Gap
15,932,817,925
146,354,327,197
(50,167,928,302)
14,197,660,460
12,075,956,223
7,850,000,000
25,208,562,775
19,375,597,630
3,049,418,859
42,470,865,202
Liabilities
Balance with Bangladesh Bank, agent bank,
other banks and financial institutions
45,520,284,061
-
The bank uses a capital model to assess the capital demand for material risks, and support its
internal capital adequacy assessment. Each material risk is assessed, relevant mitigants are
considered, and the appropriate level of capital is determined. The capital modelling process is a key
part of the Bank's management disciplines.
A strong governance and process framework is embedded in the Bank’s capital planning and
assessment methodology. Overall responsibility for the effective management of risks rests with the
Management Committee.
Standardized Approach is followed for computation of capital charge for credit risk, market risk,
while Basic Indictor Approach for operational risk.
Quantitative Disclosures:
57,044,085,146
222,355,829,783
0
33,261,267,221
33,545,860,492
(23,754,490,753)
Details of Risk Weighted Assets as on 31 December:
Risk Weighted Assets
On balance sheet exposures
Financial Highlights 2015
Off-balance sheet exposures
Standard Chartered Bank
Annexure - D
Bangladesh Branches
Market risk
Financial Highlights 2015
Sl. no.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
Particulars
Capital - fund deposited with Bangladesh Bank
Total regulatory capital
Capital surplus / deficit
Total assets
Total deposits
Total loans and advances
Total contingent liabilities and commitments
Advances / deposit ratio
Classified advances as (%) of total advances
Net profit after tax and provisions
Amount of classified loans during current year
Amount of provisions against classified loans
Provision surplus / shortage
Interest expenses
Interest bearing assets
Non-interest bearing assets
Return on investment (ROI)
Return on assets (ROA)
Income from investment
2015
2,219,501,566
35,631,015,894
15,732,147,592
222,355,829,783
155,923,171,401
114,440,291,713
126,534,518,262
73.40%
4.16%
9,303,305,731
1,623,476,201
3,412,721,625
254,698,599
3,785,529,594
176,379,458,436
45,976,371,347
26.56%
4.18%
6,005,472,934
Taka
Taka
Taka
Taka
Taka
Taka
Taka
%
%
Taka
Taka
Taka
Taka
Taka
Taka
Taka
%
%
Taka
Reconciliation between Bangladesh Bank's statement and the Bank's statement
Standard Chartered Bank
Annexure - E
2014
2,207,278,944
27,905,515,061
6,966,069,200
213,738,409,323
149,242,480,974
110,678,067,035
135,873,307,082
74.16%
5.37%
11,770,562,210
1,905,141,789
4,469,416,566
258,910,460
6,221,277,393
165,730,916,888
48,007,492,435
44.08%
5.51%
6,888,356,351
Operational risk
Total Risk Weighted Assets
Capital requirement for Credit risk
Capital requirement for Market risk
Reconciliation between Bangladesh Bank's statement and the Bank's statement
as at 31 December 2015
Disclosures on Risk Based Capital (Basel III)
In order to comply with the CRR and SLR requirements, the Bank considers the actual balances held with
Bangladesh Bank according to their (Bangladesh Bank) books of accounts. However, when preparing the
statutory accounts the Bank considers the actual balances held with Bangladesh Bank according to the Bank's
books of accounts. This results in reconciling differences between the Bank's statutory accounts and CRR and
SLR requirements.
The following detailed qualitative and quantitative disclosures are provided in accordance with Guidelines on
Risk Based Capital Adequacy published by Bangladesh Bank. The purpose of these requirements is to
complement minimum capital requirement and Supervisory Review Process. These disclosures are intended
for a more transparent and disciplined financial market where the participants can assess key information
about the Bank's exposure to various risks.
Local currency
10,315,274,213
9,788,168,601
527,105,612
Bangladesh Bank Dhaka
Bangladesh Bank Chittagong
Reconciling
difference
Taka
414,219,042
400,870,062
13,348,980
Bangladesh Bank Sylhet
77,814,829
77,561,364
253,465
Bangladesh Bank Khulna
36,327,531
34,994,809
1,332,721
Bangladesh Bank Bogra
41,447,088
41,432,338
14,750
1,020,000,000
1,020,000,000
-
11,905,082,703
11,363,027,175
542,055,528
Bangladesh Bank Dhaka - Al Wadia C/A- BDT
Credited by the Bank but not debited by Bangladesh Bank
5,375,404,982
Debited by the Bank but not credited by Bangladesh Bank
3,102,781,870
Credited by Bangladesh Bank but not debited by the Bank
1,585,964,314
Debited by Bangladesh Bank but not credited by the Bank
3,316,531,898
542,055,528
Foreign currency
USD clearing account
As per
Bangladesh
Bank statement
USD
39,345,123
USD capital account
As per the Bank's
general ledger
32,308,929 2,536,250,927
39,345,123
Taka
USD
-
7,036,194
5,352,990
Debited by the Bank but not credited by Bangladesh Bank
4,259,388
Credited by Bangladesh Bank but not debited by the Bank
6,504,110
561,518
GBP clearing account
As per the Bank's
general ledger
Taka
GBP
Disclosure Framework
The disclosure requirements are as per the Guidelines on Risk Based Capital Adequacy (RBCA) for
Banks.
B. Capital Structure
Qualitative Disclosures:
Standard Chartered Bank Bangladesh's capital structure consists of Tier I and Tier II capital which is
aligned with regulatory capital structure. Tier I capital is further categorized as Common Equity Tier 1
(CET1) and Additional Tier 1 capital. The computation of the amount of Common Equity Tier I, Additional
Tier I and Tier II capital shall be subject to the following conditions:
Minimum Capital to Risk-weighted Asset Ratio (CRAR) will be 10% of the total RWA.
GBP
• Additional Tier I capital can be maximum up to 1.5% of the total RWA or 33.33% of CET 1,
whichever is higher.
• Tier II capital can be maximum up to 4% of the total RWA or 88.89% of CET1, whichever is higher.
• In addition to minimum CRAR, Capital Conservation Buffer (CCB) @ 2.5% of the total RWA will be
maintained in the form of CET1 in a phased manner from 2016 to 2019.
472,230
472,059
54,958,758
171
-
The Bank debited but Bangladesh Bank had not credited
-
Bangladesh Bank credited but the Bank had not debited
171
Bangladesh Bank debited but the Bank had not credited
171
Reconciling
difference
JPY
566,388
566,388
369,342
-
566,388
566,388
369,342
-
Tier I capital of the Bank includes funds deposited with Bangladesh Bank, actuarial gain/(loss) and
retained earnings. Tier 1 capital is also called ‘Core Capital’ of the Bank. According to BRPD letter ref no.
BRPD (BFIS)661/14B(P)/2015-18014 dated 24 December 2015, 5% of deferred tax recognised on
specific provision shall be allowable as CET 1 capital whilst all other deferred tax assets created on other
items shall be deducted from the retained earnings when calculating the capital adequacy ratio.
Tier II capital consists of general provision and revaluation reserve for Held to Maturity (HTM) and Held
for Trading (HFT) securities. General provision for inclusion in Tier II capital is limited to a maximum
1.25% of Credit RWA calculated under the standardized approach. Revaluation reserve for securities
shown as Tier II capital as on 31 December 2014 is being nullified in a phased manner at the rate of 20%
from 2015 and will be fully adjusted by 2020.
Quantitative Disclosures:
The Bank credited but Bangladesh Bank had not debited
-
The Bank debited but Bangladesh Bank had not credited
-
Bangladesh Bank credited but the Bank had not debited
-
Common Equity Tier I
-
Fund Deposited with Bangladesh Bank
-
Retained earnings
Bangladesh Bank debited but the Bank had not credited
As per
Bangladesh
Bank statement
EUR
EUR clearing account
As per the Bank's
general ledger
Taka
EUR
Reconciling
difference
Bangladesh Bank Guidelines
EUR
269,767
269,340
23,095,805
426
Additional Tier I capital
269,767
269,340
23,095,805
426
Total Tier I capital
The Bank credited but Bangladesh Bank had not debited
426
The Bank debited but Bangladesh Bank had not credited
-
Bangladesh Bank credited but the Bank had not debited
-
Bangladesh Bank debited but the Bank had not credited
426
Total (Taka)
The details of capital structure as at 31 December are provided as under:
Actuarial gain/(loss)
Less: Regulatory Adjustment for Deferred Tax Assets as per
13,977,702,007
62,224,397,460
168,961,663,765
2,861,793,013
6,644,770,628
33,553,721,507
33,788,024,221
198,988,683,018
209,394,458,614
16,257,316,850
16,896,166,377
664,477,063
3,355,372,151
3,378,802,422
Minimum Capital Requirement
19,898,868,302
20,939,445,861
Total Tier I Capital
33,407,190,430
25,553,918,194
Total Tier II Capital
2,223,825,462
2,351,596,867
Total Regulatory Capital
35,631,015,892
27,905,515,061
Surplus Capital
15,732,147,590
6,966,069,200
2015
2014
Capital Adequacy Ratio
17.91%
13.33%
Tier I Capital Adequacy Ratio
16.79%
12.20%
Tier II Capital Adequacy Ratio
1.12%
1.12%
Effective risk management is fundamental to being able to generate profits consistently and
sustainably and is thus a central part of the financial and operational management of the Bank.
Through the risk management framework, the Bank manages enterprise-wide risks with the
objective of maximising risk adjusted returns while remaining within its risk appetite. As part of this
framework, the Bank uses a set of principles that describe the risk management culture it wishes to
sustain:
•
Balancing risk and return: Risk is taken in support of the requirements of the Bank's
stakeholders, in line with its strategy and within its risk appetite
•
Responsibility: It is the responsibility of all employees to ensure that risk-taking is disciplined
and focused. The Bank takes account of its social responsibilities and its commitments to
customers in taking risk to produce a return.
•
Accountability: Risk is taken only within agreed authorities and where there is appropriate
infrastructure and resource. All risk-taking must be transparent, controlled and reported.
•
Anticipation: The Bank seeks to anticipate future risks and ensure awareness of all known
risks.
•
Competitive advantage: The Bank seeks to achieve competitive advantage through efficient
and effective risk management and control.
D. Credit Risk
Qualitative Disclosures:
Credit risk is the potential for loss due to failure of a counterparty to meet its obligations to pay the
Bank in accordance with agreed terms.
Credit risk is managed through a framework which sets out policies and procedures covering the
measurement and management of credit risk. There is a clear segregation of duties between
transaction originators in the business and approvers in the Risk function. All credit exposure limits
are approved within a defined credit approval authority framework.
A comprehensive framework is in place for the management of counterparty credit risk. This
includes a structured process for the delegation of credit approval authority and for monitoring
compliance with credit appetite. Policy and procedures are defined to support credit underwriting
activities at all levels of the Group. These policies are defined at 3 levels-Group, Business and
Country level.
Tier I capital will be at least 5.50% of the total RWA.
171
Taka
Market Discipline to make public disclosure of information on the bank's risk profiles, capital
adequacy and risk management.
• 54,958,758
JPY
•
• The Bank credited but Bangladesh Bank had not debited
JPY clearing account
Supervisory Review Process for assessing overall capital adequacy in relation to a bank's risk profile
and a strategy for maintaining its capital at an adequate level;
Reconciling
difference
472,059
As per the Bank's
general ledger
•
The Bank has to maintain at least 4.50% of total Risk Weighted Assets (RWA) as Common Equity
Tier I capital.
472,230
As per
Bangladesh
Bank statement
JPY
Minimum capital requirements to be maintained by a bank against credit, market and operational
risk;
• 7,036,194
As per
Bangladesh
Bank statement
GBP
•
Bank has no subsidiaries and Basel III is applied at the Bank level only.
7,036,194
Credited by the Bank but not debited by Bangladesh Bank
Debited by Bangladesh Bank but not credited by the Bank
Guidelines on Risk Based Capital Adequacy are structured around the following three aspects or pillars of
Basel III:
Qualitative Disclosures:
USD
-
32,308,929 2,536,250,927
The bank has an approved disclosure policy to observe the disclosure requirements set out by the
Bangladesh Bank and International Financial Reporting Standards (IFRS) and International Accounting
Standards (IAS) as adopted by the Institute of Chartered Accountants of Bangladesh (ICAB) into Bangladesh
Financial Reporting Standards (BFRS) and Bangladesh Accounting Standards (BAS) where relevant to the
bank.
A. Scope of Application
Reconciling
difference
56,985,272,146
162,573,168,498
Risk management
Standard Chartered Bank
Bangladesh Branches
As per
the Bank's
general ledger
Taka
2014 (Taka)
106,737,266,305
286,179,301
Capital requirement for Operational risk
Disclosures on Risk Based Capital (Basel III)
Bangladesh Branches
As per
Bangladesh
Bank statement
Taka
Total Credit risk
2015 (Taka)
105,587,896,352
All credit decisions are subject to underwriting standards which mandate defined processes and
procedures for performing credit checks and detailed due diligence reviews. Systems and controls
are in place to monitor collateral value and loan covenants. Each counterparty is also required to
have an approved limit in place prior to drawdown of funds. Limit excesses are actively managed
and subject to reporting and escalation.
Counterparties are subject to credit rating and these ratings are reviewed on a regular basis. Active
monitoring of account level activity and limit utilization trends help to inform the early alert and risk
trigger mechanisms. Potential problem accounts are investigated, monitored and appropriate action
is taken. Standing Committees dedicated to account and portfolio monitoring supported by portfolio
information reports are a well established discipline. The portfolio is monitored from the point of view
of industry concentrations, risk grade distribution and tenor and security profiles amongst other
parameters.
Credit risk from traded products is managed within the overall credit risk appetite for corporates and
financial institutions. The credit risk exposure from traded products is derived from the positive
mark-to-market value of the underlying instruments, and an additional component to cater for
potential market movements.
Past dues and impaired exposures are defined in accordance with the relevant Bangladesh Bank
regulations. Specific and general provisions are computed periodically in accordance with the
Bangladesh Bank regulations.
Quantitative Disclosures:
Details of Credit Risk as on 31 December:
2015 (Taka)
2014 (Taka)
Funded
185,463,694,904
180,441,904,761
Non-funded
126,534,518,262
135,873,307,082
Total
311,998,213,166
316,315,211,843
Gross Credit risk exposures:
Distribution of risk exposure by claims:
2015 (Taka)
2014 (Taka)
2,219,501,566
2,207,278,944
32,555,862,837
23,993,257,103
(207,431,414)
22,630,212
(1,160,742,557)
(669,248,065)
33,407,190,432
25,553,918,194
-
-
33,407,190,432
25,553,918,194
Cash and cash equivalents
2,193,451,568
2,572,999,553
Claims on Sovereigns and Central Bank
14,017,698,172
13,166,105,596
Claims on banks
21,987,336,340
18,700,487,849
Investments
23,301,506,428
24,642,185,873
Claims on corporate
67,375,801,583
63,629,040,704
Claims on Consumer and SME Loan
47,064,490,132
47,049,026,331
Fixed Assets
692,232,603
1,036,790,794
8,831,178,078
9,645,268,058
Off-balance sheet items
126,534,518,262
135,873,307,082
Total
311,998,213,166
316,315,211,840
1,236,096,931
1,818,474,849
703,360,209
1,094,808,734
-
-
Others assets
Tier II
General Provision
Revaluation Reserve for Securities
Total Tier II capital
Total Capital
2,032,164,606
2,112,020,797
191,660,856
239,576,070
2,223,825,462
2,351,596,867
35,631,015,892
27,905,515,061
Credit risk mitigation:
Claims secured by financial collateral
Net exposures after the application of haircuts
Claims secured by eligible Guarantee
Disclosures on Risk Based Capital (Basel III)
Geographical Distribution of Credit Exposure:
Geographical Distribution of Credit Exposure:
Dhaka
BDT
2015
Chittagong
BDT
Narayangonj
BDT
Khulna
BDT
Sylhet
BDT
Bogra
BDT
1,737,262,184
14,017,698,172
21,987,336,340
23,301,506,428
54,403,477,765
40,070,811,356
686,617,656
5,822,346,542
303,114,176
12,072,323,818
5,399,760,883
3,523,700
2,007,897,531
21,629,566
581,297,714
495,902
567,541,557
64,600,218
300,788,874
280,845
525,354,676
34,205,982
524,657,097
270,367
521,154,815
32,639,442
900,000,000
187,174,208
1,044,133
(613,117,043)
2,193,451,568
14,017,698,172
21,987,336,340
23,301,506,428
67,375,801,583
47,064,490,132
692,232,603
8,831,178,078
Total on-balance sheet Items
162,027,056,443
19,786,620,108
1,170,964,739
891,024,613
1,080,288,261
507,740,740
185,463,694,904
Off-balance Sheet Items
106,577,851,753
19,956,666,509
Total
268,604,908,196
39,743,286,617
Cash and cash equivalents
Claims on Sovereigns and Central Bank
Claims on Banks
Investments
Claims on Corporate
Claims on Consumer and SME Loans
Fixed Assets
Others Assets
Dhaka
BDT
2014
Cash and cash equivalents
Claims on Sovereigns and Central Bank
Claims on Banks
Investments
Claims on Corporate
Claims on Consumer and SME Loans
Fixed Assets
Others Assets
1,170,964,739
Chittagong
BDT
1,959,601,669
13,166,105,596
18,700,487,849
24,642,185,873
55,055,818,030
38,394,278,961
1,023,135,160
(578,314,282)
-
-
891,024,613
Narayangonj
BDT
Khulna
BDT
Bogra
BDT
23,088,001
785,000,000
235,707,362
93,975
(480,328,551)
29,313,799
489,610,259
1,827,553
601,691,951
100,915,827
308,491,025
1,337,849
506,195,816
51,487,183
589,754,728
1,994,659
576,362,359
1,122,443,562
916,940,517
1,219,598,929
Total on-balance sheet Items
152,363,298,856
24,256,062,107
Off-balance Sheet Items
104,154,287,536
31,719,019,546
Total
256,517,586,392
55,975,081,653
-
-
1,122,443,562
507,740,740
Sylhet
BDT
408,593,074
7,788,222,674
7,031,183,996
8,401,598
9,019,660,765
563,560,787
1,219,598,929
311,998,213,166
2,572,999,553
13,166,105,596
18,700,487,849
24,642,185,873
63,629,040,704
47,049,026,331
1,036,790,794
9,645,268,058
563,560,787
180,441,904,758
316,315,211,840
Industry Distribution of Exposure:
Industry Distribution of Exposure:
Cash and cash equivalents
Claims on Sovereigns and Central Bank
Claims on Banks
Investments
Claims on Corporate
Claims on Consumer and SME Loans
Fixed Assets
Others Assets
Agriculture,
Electricity, gas and
hunting, forestry Manufacturing
water
and fishing
BDT
BDT
BDT
BDT
2,193,451,568
14,017,698,172
21,987,336,340
6,695,136,690 35,279,471,958
374,150,810
-
Total on-balance sheet Items
38,198,486,080
Off-balance Sheet Items
22,590,111,545
Total
60,788,597,625
2015
2014
Banks & FI
Banks & FI
6,695,136,690
35,279,471,958
6,695,136,690
Agriculture,
hunting, forestry
and fishing
BDT
374,150,810
-
BDT
23,301,506,428
692,232,603
8,831,178,078
BDT
2,193,451,568
14,017,698,172
21,987,336,340
23,301,506,428
67,375,801,583
47,064,490,132
692,232,603
8,831,178,078
6,010,517,357
11,050,244,958
32,824,917,109
185,463,694,904
103,944,406,717
126,534,518,262
136,769,323,826
311,998,213,166
BDT
-
35,279,471,958
Manufacturing
6,010,517,357
-
Financing,
Community,
insurance and Retail and SME
social and
business
personal services
service
BDT
BDT
BDT
BDT
11,050,244,958
6,363,179,763 1,603,100,047
47,064,490,132
-
374,150,810
Electricity, gas and
water
BDT
Transport and
communications
Commerce
6,010,517,357
BDT
11,050,244,958
Transport and
communications
Commerce
BDT
6,363,179,763
BDT
1,603,100,047
6,363,179,763
Community,
social and
personal services
BDT
47,064,490,132
-
-
1,603,100,047
Financing,
insurance and
business
service
BDT
47,064,490,132
Others
Total
BDT
Retail and SME
Others
BDT
BDT
Quantitative disclosures:
K. Remuneration
Qualitative disclosures:
The Group specified remuneration policy governs the local remuneration with due consideration of local
regulatory framework which is designed to reward competitively the achievement of sustainable
performance and attract and motivate the very best people who are committed to maintaining a long-term
career with Standard Chartered Bank. The Group Remuneration Committee oversees the remuneration
policy and is responsible for setting the overarching principles, parameters and governance framework of
the remuneration policy. All members of the Committee are independent non-executive Directors of
Standard Chartered Plc. The Committee has oversight of all reward policies for Standard Chartered
employees. It is responsible for setting the principles and governance framework for all remuneration
decisions. In particular, the Committee:
•
Determines and agrees with the Board the framework and broad policy for the remuneration of the Group
Chairman, Group Chief Executive, the executive directors and other designated senior executives;
•
Approves any proposal to award a high remuneration package to new recruit
•
Oversees the remuneration of material risk takers (MRT)
•
Ensures that the remuneration policy is appropriate and consistent with effective risk management
•
Approves the Group variable remuneration each year
BDT
2,572,999,553
13,166,105,596
18,700,487,849
-
3,675,833,029
-
39,891,833,633
-
1,417,226,265
-
4,539,550,539
-
6,834,376,764
-
5,795,414,112
-
1,474,806,362
-
47,049,026,331
-
24,642,185,873
1,036,790,794
9,645,268,058
2,572,999,553
13,166,105,596
18,700,487,849
24,642,185,873
63,629,040,704
47,049,026,331
1,036,790,794
9,645,268,058
Total on-balance sheet Items
34,439,592,998
3,675,833,029
39,891,833,633
1,417,226,265
4,539,550,539
6,834,376,764
5,795,414,112
1,474,806,362
47,049,026,331
35,324,244,725
180,441,904,758
Off-balance Sheet Items
Total
22,590,111,545
57,029,704,543
3,675,833,029
39,891,833,633
1,417,226,265
4,539,550,539
6,834,376,764
5,795,414,112
1,474,806,362
47,049,026,331
113,283,195,537
148,607,440,262
135,873,307,082
316,315,211,840
Salaries (Fixed Pay):
•
Salaries reflect individuals’ skills and experience and are reviewed annually against market information
and in the context of the annual performance assessment and affordability;
•
Increases may occur where there is a role change, increased responsibility or to ensure market
competitiveness.
Benefits:
•
Benefits are provided, with the details depending on local market practice. Employees have access to
country-specific, company-funded benefits such as pension schemes, private medical insurance,
permanent health insurance, life insurance and cash allowances. The cost of providing the benefits is
defined and controlled.
Maturity Breakdown of Credit Exposure:
Maturity Breakdown of Credit Exposure:
2015
Details
Cash and cash equivalents
Claims on Sovereigns and Central Bank
Claims on Banks
Investments
Claims on Corporate
Claims on Consumer and SME Loans
Fixed Assets
Others Assets
Total on-balance sheet Items
Maturity up to 1 month
BDT
2,193,451,568
14,017,698,172
21,987,336,340
29,213,560,139
10,149,339,341
7,655,634,115
85,217,019,675
Within 1 to 5 Years
BDT
16,411,736,805
3,407,398,162
19,209,950,550
39,029,085,517
Over 5 Years
BDT
380,780,796
571,009,936
5,908,792,993
692,232,603
1,175,543,963
8,728,360,291
Total
BDT
2,193,451,568
14,017,698,172
21,987,336,340
23,301,506,428
67,375,801,583
47,064,490,133
692,232,603
8,831,178,078
185,463,694,905
82,823,117,833
18,593,387,883
14,621,194,778
10,496,817,768
126,534,518,262
168,040,137,508
44,159,452,117
41,544,359,965
49,525,903,285
8,728,360,291
311,998,213,167
Quantitative disclosures:
Maturity up to 1 month
BDT
2,572,999,553
13,166,105,596
18,700,487,849
720,966,670
22,761,309,864
9,291,776,574
Within 1 to 3months
BDT
3,218,506,654
23,858,136,627
3,049,326,778
Within 3 to 12 months
BDT
6,421,797,520
11,150,155,324
9,785,621,071
Within 1 to 5 Years
BDT
13,900,181,341
5,122,935,569
18,704,748,782
8,630,565,619
75,844,211,725
30,125,970,059
27,357,573,915
37,727,865,692
Over 5 Years
BDT
380,733,688
736,503,320
6,217,553,126
1,036,790,794
1,014,702,439
9,386,283,367
Total
BDT
2,572,999,553
13,166,105,596
18,700,487,849
24,642,185,873
63,629,040,704
47,049,026,331
1,036,790,794
9,645,268,058
180,441,904,758
92,913,606,870
168,757,818,595
22,811,298,292
52,937,268,351
12,157,502,238
39,515,076,153
7,990,899,682
45,718,765,374
9,386,283,367
135,873,307,082
316,315,211,840
Off-balance Sheet Items
Off-balance Sheet Items
Total
-
2015
Gross non-performing assets (NPAs)
Non-performing asset (NPAs) to outstanding loans and advances
4.16%
Movement of specific provision for (NPAs)
Opening balance of specific provision
Written off during the period
Recoveries during the period
Provision made during the period
Translation increase / (decrease)
Closing balance of specific provision
Disclosures on Risk Based Capital (Basel III)
F. Interest rate risk in the banking book
Discussed in the next section under Market risk.
G. Market risk
Qualitative Disclosures:
Market risk is the potential for loss of earnings or economic value due to adverse changes in financial market
rates or prices. The Bank’s exposure to market risk arises principally from customer-driven transactions.
Under Pillar 1, market risk relates mainly to the trading book. The primary categories of Pillar 1 market risk for
the Bank are: interest rate risk, foreign exchange risk, commodity price risk and equity position risk. Pillar 2
market risk comprises of two elements: market risk in the trading book and interest rate risk in the banking
book (“IRRBB”).
The Bank’s internal market and traded credit risk analysis model for Pillar 2 is based on the Bank’s internal
assessment of market risk shocks which are effectively built from assessing the variables from three sources:
developing ad hoc shocks to risk factors using the changes to the economic variables in the stress
scenario but adjusting for the fact that the economic variables are usually expressed over the longer term;
stress shocks from the Financial Market weekly Stress Loss Trigger report for the trading book; or
using regulatory prescribed shocks when required.
The Market Risk Limits Policy sets the parameters for managing market risk. The Credit Risk Committee, in
conjunction with Country Market and Traded Credit Risk (“MTCR”) team , provides market risk oversight,
reporting and management of the market risk profile.
The Bank’s internal market risk analysis is based on the Bank’s value at risk (“VaR”) models. The Bank
measures the risk of losses arising from future potential adverse movements in market rates, prices and
volatilities using VaR methodology. VaR is calculated for expected movements over a minimum of one business
day at a confidence level of 99% for regulatory capital purposes. VaR and stressed VaR models are used to
calculate Pillar 1 market risk capital requirements on portfolios which have been approved as being compliant
with the Internal Model Approach under CRD IV and the Capital Requirements Regulation ("CRR"). Where the
models are not approved, Pillar 1 capital requirements are based on standard rules that are less risk sensitive.
Quantitative Disclosures:
Details of Market Risk as on 31 December:
2015 (Taka)
2014 (Taka)
275,786,012
10,393,289
286,179,301
482,216,529
182,260,534
664,477,063
Guaranteed bonuses awarded during the financial year:
Number of employee
Total amount of guaranteed bonuses
5,941,570,555
(1,179,879,308)
4,761,691,247
5,688,363,272
253,207,283
5,941,570,555
4,469,416,566
(1,673,693,193)
(592,262,290)
1,209,130,223
130,319
3,412,721,625
4,111,954,121
(286,165,947)
(535,977,168)
1,179,560,541
45,019
4,469,416,566
H. Operational Risk
Qualitative Disclosures:
Operational risk is the potential for loss arising from the failure of people, process or technology or the
impact of external events. It is the Bank’s objective to minimize exposure to operational risks, subject to
cost trade-offs. This objective is ensured through a framework of policies and procedures that drive risk
identification, assessment, control and monitoring at business / function and country levels.
Responsibility for the management of operational risks rests with the business and functional management
as an integral part of their role. An independent Operational Risk function within the Group Risk function
works alongside business and functional management, to ensure operational risk exposures are managed
within acceptable risk tolerance limits. Group Operational Risk is responsible for setting the operational risk
policy, defining standards for measurement and for the operational risk capital calculation.
Governance over operational risks is ensured through a defined structure of risk committees at group,
business function and country levels. Country Operational Risk Forum (“CORF”) have the responsibility for
oversight of operational risks and significant issues at a country level. The monthly CORF process ensures
that operational risks, losses and results of assurance reviews are managed within acceptable risk
tolerance limits.
The bank’s Pillar I approach is Basic Indicator Approach (BIA) as set out in the Guidelines on Risk Based
Capital Adequacy.
The bank proactively monitors its exposure to material loss events by leveraging on internal experience (via
risks and losses) and industry experience. The types of events that could result in a material operational
risk loss / business disruption include:
•
Internal and external fraud.
•
Damage to physical assets.
•
Business disruption and system failures.
•
Failure in execution, delivery and process management.
Quantitative Disclosures:
Capital requirement for Operational risk as on 31 December 2015 was BDT 3,355,372,151 (2014: 3,378,802,422).
I. Leverage Ratio:
Leverage ratio is the ratio of Tier 1 capital to total on and off-balance sheet exposures. The leverage ratio
was introduced into the Basel III framework as a non-risk based backstop limit, to supplement risk-based
capital requirements.
In order to avoid building-up excessive on and off-balance sheet leverage in the banking system, a
simple, transparent, non-risk based leverage ratio has been introduced by the Bangladesh Bank. The
leverage ratio is calibrated to act as a credible supplementary measure to the risk based capital
requirements. The leverage ratio is intended to achieve the following objectives:
•
Constrain the build-up of leverage in the banking sector which can damage the broader financial system
and the economy; and
•
Reinforce the risk based requirements with an easy to understand and a non-risk based measure.
35
N.A
N.A
Severance payment made during the financial year:
Number of employee
Total amount of severance payments
Total amount of outstanding deferred remuneration (in cash)
Total amount of deferred remuneration paid out in financial year
5.37%
2015
N.A
N.A
35
10,680,083
Sign-on awards made during the financial year:
Number of employee
Total amount of sign-on awards
2014 (Taka)
Disclosures on Risk Based Capital (Basel III)
E. Equities: Disclosures for Banking Book Positions
The Bank does not hold trading position in equities.
Number of meetings held by the main body overseeing remuneration during the financial year
Remuneration paid to the main body overseeing remuneration during the financial year
Number of employees having received a variable remuneration during the financial year
(Covers senior management and other material risk takers only)
2014
2015 (Taka)
Movement of non-performing assets (NPAs)
Opening balance
Net movement during the year
Closing balance
Capital requirements for:
Interest rate risk
Equity position risk
Foreign exchange risk
Commodity risk
Total
Within 3 to 12 months
BDT
6,508,988,827
11,426,924,478
8,987,251,882
26,923,165,187
Variable Remuneration:
•
Variable remuneration rewards and incentivises the achievement of business and individual objectives
as well as adherence to the Group’s values;
•
The proportion of variable to fixed remuneration paid to employees is carefully monitored
•
For MRT the deferral rate is a minimum of 40 per cent (for incentives up to £500,000) or 60 per cent (for
incentives of £500,000 or more) – see next section for more information
•
For non-MRT employees, variable remuneration over a defined threshold is subject to a graduated level
of deferral
•
Deferred incentives are usually delivered in a combination of cash and shares
•
Incentives are subject to the Group’s claw-back policy, which enables the Group, in specified
circumstances, to apply malus and claw-back at its discretion
Total
2014
Details
Cash and cash equivalents
Claims on Sovereigns and Central Bank
Claims on Banks
Investments
Claims on Corporate
Claims on Consumer and SME Loans
Fixed Assets
Others Assets
Total on-balance sheet Items
Within 1 to 3months
BDT
22,756,908,868
2,809,155,366
25,566,064,234
2015
233.35%
116.98%
53,062,428,713
10,079,659,780
191,392,969,054
163,612,351,603
Liquidity Coverage Ratio (%)
Net Stable Funding Ratio (%)
Stock of High Liquid Assets
Total Net Cash Outflows over the next 30 Calendar days
Available Amount of Stable Funding
Required Amount of Stable Funding
Total
Cash and cash equivalents
Claims on Sovereigns and Central Bank
Claims on Banks
Investments
Claims on Corporate
Claims on Consumer and SME Loans
Fixed Assets
Others Assets
1,160,742,557
282,998,094,489
J. Liquidity Ratio
Qualitative disclosures:
Liquidity risk is the potential that the Bank either does not have sufficient liquid financial resources available
to meet all its obligations as they fall due, or can only access these financial resources at excessive cost.
Liquidity is managed by the Country Asset Liability Management Committee (ALCO) within the pre-defined
liquidity limits set by and in compliance with Group liquidity policies and local regulatory requirements.
Liquidity management of the Bank is centered around the Liquidity Coverage Ratio (LCR) and Net Stable
Funding Ratio (NSFR) based on BASEL III. The Bank has an Asset Liability Management (ALM) desk to manage
this risk with active monitoring and management from Market and Traded Credit Risk (MTCR) Department.
Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) has been adopted by the bank for
liquidity risk management. LCR ensures that banks maintain enough high quality unencumbered liquid
assets to meet its liquidity needs for 30 calendar time-line whereas NSFR ensures availability of stable
funding is greater than required funding over 1 year period.
ALCO monitors the liquidity risk on a monthly basis. Based on the detailed recommendations from ALM
desk, ALCO takes appropriate action to manage the liquidity risk. These ratios are regularly monitored at
ALCO. The Bank also has internal risk control framework which outlines clear and consistent policies and
principles for liquidity risk management.
135,873,307,082
-
2015
11.80%
218,943,108,002
65,215,729,044
Leverage Ratio (%)
A. On Balance Sheet Exposure
B. Off Balance Sheet Exposure
C. Total Deduction from on and off balance sheet exposure/ Regulatory
adjustment made to Tier I Capital
Total Exposure (A+B-C)
Total
BDT
-
916,940,517
Quantitative disclosures:
126,534,518,262
-
1,080,288,261
The Bank has calculated the regulatory leverage ratio as per the guideline of Basel III. The numerator, capital
measure, is calculated using the new definition of Tier I capital applicable from 01 January 2015. The
denominator, exposure measure, is calculated on the basis of the Basel III leverage ratio framework as adopted
by the Bangladesh Bank. The exposure measure generally follows the accounting value, adjusted as follows:
•
On-balance sheet, non derivative exposures are included in the exposure measure net of specific provision;
•
Physical or financial collateral is not considered to reduce on-balance sheet exposure;
•
Loans are not netted with deposits;
Off balance sheet items are converted into credit exposure equivalents through the use of credit conversion factors
(CCFs). Depending on the risk category of the exposure a CCF of 20%, 50% or 100% is applied. A CCF of 10% is
applied on commitments that are unconditionally cancellable at any time by the bank without prior notice;
•
Item deducted from Tier I capital such as deferred tax assets is excluded.
Total
BDT
1
9,560,843
20,707,124
Breakdown of amount of remuneration awards for the financial year:
Fixed and Variable
Variable Pay
Deferred
Non-Deferred
476,662,843
154,553,135
20,707,124
133,846,011
Disclosures on Repo and Reverse repo
Standard Chartered Bank
Annexure - G
Bangladesh Branches
Disclosures on Repo and Reverse repo
(a)
Disclosure regarding outstanding Repo as on 31 December 2015
Sl. No. Counter party name
Agreement
Date
NIL
Amount
(1st leg cash
consideration)
Reversal
Date
N/A
N/A
Total
(b)
-
Disclosure regarding outstanding Reverse Repo as on 31 December 2015
Sl. No. Counter party name
Agreement
Date
Nil
Amount
(1st leg cash
consideration)
Reversal
Date
N/A
N/A
Total
-
(c ) Disclosure regarding overall transaction of Repo and Reverse repo
Sl.
Particulars
No.
1
Maximum
outstanding
Minimum
outstanding
Securities sold under repo
(i) Bangladesh bank*
(ii) Other banks & FIs
-
Daily average
outstanding
4,370,000,000
1,998,295,149
131,873,205
36,786,859
Securities purchased under reverse repo
(i) Bangladesh bank
4,900,000,000
(ii) Other banks & FIs
8,094,182,369
*All repos were under the ALS (Assured Liquidity Support) arrangement.
822,249,315
1,253,409,103
2
Credit Rating
Year 2015
Year 2014
Outlook
Date of current Rating
Long term
AAA
AAA
Short term
ST-1
ST-1
Stable
4 May, 2016
Credit Rating Information and Services Limited (CRISL) reaffirms AAA
(pronounced as triple A) in long term and ST-1 rating on short term to Standard
Chartered Bank (Bangladesh Operation).
Standard Chartered Bank
Offshore Banking Unit, Bangladesh
Financial Statements 2015
Notes to the Financial Statements
Profit
andSheet
Loss Account
Balance
Independent Auditor's Report
Independent Auditor's Report to the Management of
Standard Chartered Bank
Offshore Banking Unit
Standard Chartered Bank
Standard Chartered Bank
Offshore Banking Unit, Bangladesh
Offshore Banking Unit, Bangladesh
Profit and Loss Account
for the year ended 31 December 2015
Report on the Financial Statements
We have audited the accompanying financial statements of the Offshore Banking Unit ("the Bank"/ OBU) of
Standard Chartered Bank, Bangladesh Branches which comprise the balance sheet as at 31 December 2015,
and the profit and loss account, cash flow statement and statement of changes in equity for the year then
ended and a summary of significant accounting policies and other explanatory information.
Notes to the Financial Statements
as at and for the year ended 31 December 2015
2015
Notes
2014
USD
USD
Taka
1
Taka
Management’s Responsibility for the Financial Statements and Internal Controls
Interest income
12
22,328,299
1,740,045,894
Management is responsible for the preparation of financial statements that give a true and fair view in
accordance with Bangladesh Financial Reporting Standards as explained in note 3.2 and for such internal
control as management determines is necessary to enable the preparation of financial statements that are free
from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and Bangladesh Bank
regulations require the management to ensure effective internal audit, internal control and risk management
functions of the Bank. The management is also required to make a self-assessment on the effectiveness of
anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.
Interest expense on deposits and borrowings
13
2,416,037
188,303,903
1,181,025
91,647,008
19,912,262
1,551,741,990
19,097,268
1,482,337,350
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted
our audit in accordance with Bangladesh Standards on Auditing. Those standards require that we comply with
ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgement, including the assessment of
the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk
assessments, we consider internal controls relevant to the entity’s preparation of financial statements that give
a true and fair view in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
Net interest income
Income from investments
-
-
-
-
143,472,901
1,556,687
127,585,206
-
-
-
-
Total operating income
21,596,093
1,695,214,892
20,653,955
1,609,922,556
Salaries and allowances
140,350
10,962,173
85,058
6,602,215
15,115
1,177,093
17,467
1,355,572
244
19,059
89
6,933
2,569
200,153
3,874
300,391
399
30,937
979
75,832
25,221
1,970,019
12,524
972,059
31,412
2,450,993
37,341
2,897,454
Other operating income
Rent, taxes, insurance, electricity, etc.
Legal expenses
Postage, stamps, telephone, telex, etc.
Stationery, printing, advertisements, etc.
Repairs and maintenance
15
Other expenses
Total operating expenses
Profit before provision
Provision for loans and advances and off balance sheet exposures 11.1
Total provision
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Bank as at 31
December 2015, and of its financial performance and its cash flows for the year then ended in accordance with
Bangladesh Financial Reporting Standards as explained in note 3.2.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, the Bank Company Act, 1991 and the rules and regulations
issued by Bangladesh Bank, we also report the following:
(a)
we have obtained all the information and explanation which to the best of our knowledge and belief
were necessary for the purpose of our audit and made due verification thereof;
(b)
to the extent noted during the course of our audit work performed on the basis stated under the
Auditor’s Responsibility section in forming the above opinion on the financial statements of the Bank
and considering the reports of the management to Bangladesh Bank on anti-fraud internal controls and
instances of fraud and forgeries as stated under the Management’s Responsibility for the Financial
Statements and Internal Controls section:
i)
internal audit, internal control and risk management arrangements of the Bank appeared to be
materially adequate; and
ii) nothing has come to our attention regarding material instances of forgery or irregularity or
administrative error and exception or anything detrimental committed by employees of the Bank.
(c)
in our opinion, proper books of account as required by law have been kept by the Bank so far as it
appeared from our examination of those books;
(d)
the balance sheet and the profit and loss account dealt with by the report are in agreement with the
books of account;
(e)
the financial statements of the Bank have been drawn up in conformity with prevailing rules, regulations
and accounting standards as well as with related guidance issued by Bangladesh Bank;
(f)
adequate provisions have been made for advances which are, in our opinion, doubtful of recovery;
(g)
the records and statements submitted by the branches have been properly maintained and
consolidated in the financial statements;
(h)
the information and explanation required by us have been received and found satisfactory; and(i) w e
have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 150 person
hours for the audit of the books and accounts of the Bank.
Total profit before tax
Net profit after tax
Offshore Banking Unit, Bangladesh
Balance Sheet
as at 31 December 2015
2015
Cash
Cash in hand (including foreign currencies)
Balance with Bangladesh Bank and its agent banks
(including foreign currencies)
Balance with other banks and financial institutions
Inside Bangladesh
Outside Bangladesh
USD
Taka
Taka
-
-
-
-
-
-
-
-
30,156,576
17,542,603
47,699,179
2,367,291,232
1,377,094,370
3,744,385,602
28,560,270
4,418,254
32,978,524
2,226,273,058
344,402,887
2,570,675,945
-
-
-
-
5
Money at call and short notice
Investments
Government securities
Other investments
-
Loans and advances
Loans, cash credit, overdrafts, etc.
Bills purchased and discounted
6
7
8
Non banking assets
Total assets
-
100,793,169 7,912,263,770
386,590,510 30,347,355,016
487,383,679 38,259,618,786
Fixed assets including premises, furniture and fixtures
Other assets
2014
USD
-
-
83,707,017 6,524,961,984
424,067,617 33,056,070,710
507,774,634 39,581,032,694
-
-
-
-
4,509,312
353,980,839
5,133,245
400,136,566
539,592,170 42,357,985,227
545,886,403 42,551,845,206
Liabilities
Borrowings from other banks, financial institutions and agents 9
Deposits and other accounts
Current and other accounts
Term deposits
Other deposits
10
Other liabilities
Total liabilities
11
OFF-BALANCE SHEET ITEMS
Contingent liabilities
Acceptances and endorsements
Letters of guarantee
Irrevocable letters of credit
Bills for collection
Other commitments
Total off-balance sheet items
438,156,540 34,395,288,388
32,353,773
252,838
32,606,611
2,539,771,182
19,847,767
2,559,618,949
481,273,304 37,515,254,078
15,196,167
452,831
15,648,998
1,184,541,240
35,298,147
1,219,839,387
43,104,324 3,383,676,375
513,867,475 40,338,583,712
35,719,919 2,784,367,716
532,642,221 41,519,461,181
25,724,695 2,019,401,515
25,724,695 2,019,401,515
539,592,170 42,357,985,227
13,244,182 1,032,384,025
13,244,182 1,032,384,025
545,886,403 42,551,845,206
12,754,131
52,114
16,634,214
77,493,370
106,933,829
106,933,829
1,001,199,305
4,090,964
1,305,785,786
6,083,229,541
8,394,305,596
8,394,305,596
9,009,326
8,273
7,888,470
67,489,067
84,395,136
84,395,136
702,276,985
644,859
614,906,199
5,260,772,792
6,578,600,835
6,578,600,835
The accompanying notes 1 to 21 form an integral part of these financial statements.
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
As per our report of same date.
5,005,914
1,043,146
81,313,240
-
-
-
-
63,770
5,005,914
1,043,146
81,313,240
21,317,014
1,673,398,551
19,453,477
1,516,398,860
9,059,801
711,194,385
8,711,067
679,027,951
12,257,213
962,204,166
10,742,410
837,370,909
The Bank is engaged in offshore banking under a licence granted by Bangladesh Bank. It provides
banking services to EPZ customers.
3
Basis of preparation
3.1 Reporting period
These financial statements cover one calendar year from 1 January 2015 to 31 December 2015.
These financial statements are authorised for issue by management of the Bank on 28 April 2016.
3.2 Statement of compliance
The Financial Reporting Act 2015 (FRA) has been enacted during the year. Under the FRA, the
Financial Reporting Council (FRC) is to be formed and it is to issue financial reporting standards for
public interest entities such as banks. The Bank Companies Act 1991 has been amended to require
banks to prepare their financial statements under such financial reporting standards.
The FRC is yet to be formed and as such no financial reporting standards have been issued as per
the provisions of the FRA. Hence, the financial statements of the Bank continue to be prepared in
accordance with Bangladesh Financial Reporting Standards (BFRS) and the requirements of the
Bank Companies Act 1991, the rules and regulations issued by Bangladesh Bank and the
Companies Act 1994. ln case any requirement of the Bank Companies Act 1991, and provisions and
circulars issued by Bangladesh Bank differ with those of BFRS, the requirements of the Bank
Companies Act 1991, and provisons and circulars issued by Bangladesh Bank shall prevail. Material
deviations from the requirements of BFRS are as follows:
i)
Bangladesh Bank: As per BRPD circular no.14 dated 23 September 2012, BRPD circular no.
19 dated 27 December 2012, BRPD circular no. 05 dated 29 May 2013 and BRPD circular no.
16 dated 18 November 2014, a general provision at 0.25% to 5% under different categories of
unclassified loans (standard/SMA loans) has to be maintained regardless of objective evidence
of impairment. Also provision for sub-standard loans, doubtful loans and bad/losses loans has
to be provided at 20%, 50% and 100%, respectively for loans and advances depending on the
duration of overdue. Again as per BRPD circular no. 14 dated 23 September 2012, a general
provision at 1% is required to be provided for all off-balance sheet exposures. Such provision
policies are not specifically in line with those prescribed by BAS 39.
As per our report of same date.
ii)
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is
classified, interest on such loan is not allowed to be recognised as income, rather the
corresponding amount needs to be credited to interest in suspense account, which is
presented as liability in the balance sheet.
Cash Flow Statement
Standard Chartered Bank
iii)
Offshore Banking Unit, Bangladesh
Taka
USD
22,938,523
(2,308,452)
1,683,716
(140,350)
(8,711,067)
(111,881)
13,350,490
1,785,137,442
(179,713,781)
143,463,810
(10,962,173)
(679,028,143)
(8,670,925)
1,050,226,231
20,477,010 1,331,425,737
13,827
1,073,278
16,957,612 1,339,779,562
(43,116,764) (3,119,965,690)
6,815,180
546,357,215
1,146,865
98,670,102
14,497,355 1,148,896,333
Net cash from operating activities
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which are
to be followed by all banks. The templates for financial statements issued by Bangladesh Bank
do not include OCI nor are the elements of OCI allowed to be included in a single other
comprehensive income statement. As such the Bank does not prepare the other
comprehensive income statement. However, elements of OCI, if any, are shown in the
statements of changes in equity.
2014
USD
Rahman Rahman Huq
Chartered Accountants
Other comprehensive income
BFRS: As per BAS 1 Presentation of Financial Statements, Other Comprehensive Income
(OCI) is a component of financial statements or the elements of OCI are to be included in a
single Other Comprehensive Income Statement.
Cash Flow Statement
for the year ended 31 December 2015
Increase/decrease in operating assets and liabilities
Loans and advances to customers
Other assets
Deposits from customers
Borrowing from other banks and financial institutions
Other liabilities
Recognition of interest in suspense
BFRS: Loans and advances to customers are generally classified as loans and receivables as
per BAS 39 and interest income is recognised through effective interest method over the term
of the loan. Once a loan is impaired, interest income is recognised in the profit and loss account
in the same basis based on revised carrying amount.
Rahman Rahman Huq
Chartered Accountants
Dhaka, 28 April 2016
Provision on loans and advances
BFRS: As per BAS 39 Financial Instruments: Recognition and Measurement, an entity should
start the impairment assessment by considering whether objective evidence of impairment
exists for financial assets that are individually significant. For financial assets that are not
individually significant, the assessment can be performed on an individual or collective
(portfolio) basis.
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
Taka
18,958,886
(927,846)
1,556,572
(88,660)
(68,666)
(6,841,299)
12,588,987
1,470,416,146
(71,909,760)
127,576,242
(6,881,729)
(5,329,030)
(531,979,859)
981,892,010
iv)
Financial instruments – presentation and disclosure
Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments
differently from those prescribed in BAS 32 Financial Instruments: Presentation, BAS 39 and
BFRS 7 Financial Instruments: Disclosures. As such full disclosure and presentation
requirements of BFRS 7 and BAS 32 are not made in the financial statements.
v)
Financial guarantees
BFRS: As per BAS 39, financial guarantees are contracts that require an entity to make
specified payments to reimburse the holder for a loss it incurs because a specified debtor fails
to make payment when due in accordance with the terms of a debt instrument. Financial
guarantees are recognised initially at fair value, and the initial fair value is amortised over the
life of the financial guarantee. The financial guarantees is subsequently carried at the higher of
this amortised amount and the present value of any expected payment when a payment under
the guarantee has become probable.
(96,701,697) (7,615,074,351)
1,866
152,399
2,603,049
205,386,317
95,187,970 7,493,258,501
4,326,910
340,406,647
5,418,098
424,129,513
18,007,085 1,406,021,523
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, financial guarantees
such as letter of credit, letter of guarantee etc. are treated as off-balance sheet items.
vi)
Cash flow statement
B) Cash flows from investing activities
Proceeds from sale of securities
Payments for purchase of securities
Purchase of fixed assets
Proceeds from sale of assets
Net cash from investing activities
-
-
-
-
C) Cash flows from financing activities
Profit remitted to Head Office
-
-
(7,390,104)
(573,693,737)
BFRS: As per BFRS, there is no requirement for disclosure of off-balance sheet items on the
face of the balance sheet.
14,497,355
1,148,896,333
10,616,981
832,327,786
223,300
24,813,324
54,041
3,716,804
Bangladesh Bank: As per BRPD 14 dated 25 June 2003, off-balance sheet items (e.g. letter
of credit, letter of guarantee etc.) must be disclosed separately on the face of the balance
sheet.
F) Opening cash and cash equivalents
32,978,524
2,570,675,945
22,307,502
1,734,631,355
BFRS: Loans and advances shall be recognised net of impairment loss as per BAS 39.
G) Closing cash and cash equivalents (D+E+F) (Note - 16)
47,699,179
3,744,385,602
32,978,524
2,570,675,945
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, provision on loans and
advances is presented separately as liability and can not be netted off against loans and
advances.
BFRS: As per BAS 7 Statement of Cash Flows, the cash flow statement can be prepared using
either the direct method or the indirect method. The presentation is selected to present these
cash flows in a manner that is most appropriate for the business or industry. The method
selected is applied consistently.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, cash flow is the mixture
of direct and indirect methods.
vii)
D) Net increase/(decrease) in cash and cash equivalents (A+B+C)
E) Effects of exchange rate changes on cash and cash equivalents
Off-balance sheet items
Loans and advances net of provision
3.3 Basis of measurement
Statement of Changes in Equity
The financial statements of the Bank have been prepared on historical cost basis.
3.4 Functional and reporting currency
Standard Chartered Bank
The financial statements of the OBU are presented in USD which is the OBU’s functional and
presentation currency. The balance sheet and the profit and loss accounts are also presented in
Taka using the exchange rate prevailing at the balance sheet date and average exchange rate of the
month during which the transactions incurred, respectively.
Offshore Banking Unit, Bangladesh
Statement of Changes in Equity
for the year ended 31 December 2015
3.5 Use of estimates and judgements
Fund
deposited
with
Bangladesh
Bank
Other
reserve
USD Taka
USD Taka
Profit and loss
account balance
USD
9,837,835
Balance as at 1 January 2014
The preparation of financial statements requires management to make judgements, 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.
Total
Taka
USD
764,990,049
9,837,835
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting
estimates are recognised in the periods in which the estimate is revised and in any future periods
affected.
Taka
764,990,049
Currency translation differences
-
-
-
-
54,041
3,716,804
54,041
3,716,804
Net profit for the year
-
-
-
-
10,742,410
837,370,909
10,742,410
837,370,909
Profit remitted to Head Office
-
-
-
-
(7,390,104) (573,693,737)
(7,390,104) (573,693,737)
13,244,182 1,032,384,025
13,244,182 1,032,384,025
Balance as at 1 January 2015
-
-
13,244,182 1,032,384,025
13,244,182 1,032,384,025
Currency translation differences
-
-
-
-
223,300
24,813,324
223,300
24,813,324
Net profit for the year
-
-
-
-
12,257,213
962,204,166
12,257,213
962,204,166
-
-
-
-
25,724,695 2,019,401,515
Profit remitted to Head Office
Dhaka, 28 April 2016
63,770
Abrar A. Anwar
Chief Executive Officer, Bangladesh
Balance as at 31 December 2014
Abrar A. Anwar
Chief Executive Officer, Bangladesh
12,210,456
1,597,712,100
Nature of business
viii)
LIABILITIES AND CAPITAL
Equity
Fund deposited with Bangladesh Bank as capital
Other reserve
Profit and loss account balance
Total equity
Total liabilities and equity
157,332
20,496,623
2
The accompanying notes 1 to 21 form an integral part of these financial statements.
A) Cash flows from operating activities
Interest receipts in cash
Interest payments
Fee and commission received
Cash payments to employees
Cash payments to suppliers
Income taxes paid
Operating profit before changes in operating assets and liabilities
Standard Chartered Bank
Notes
16,810,427
1,678,404,465
2015
Balance Sheet
PROPERTY AND ASSETS
11.2
Provisions for income tax
Rahman Rahman Huq
Chartered Accountants
Dhaka, 28 April 2016
215,310
21,380,784
Provision for diminution in value of investments
Offshore Banking Unit ("the Bank"/OBU) of Standard Chartered Bank (SCB), Bangladesh Branches
commenced its banking operations in Bangladesh on 16 August 1994 after obtaining license from
Bangladesh Bank, the Central Bank of Bangladesh on 20 December 1993. Standard Chartered Bank
(SCB), Bangladesh Branches commenced its banking operations in Dhaka, in 1948 after obtaining
licence from Central Bank.
20,278,293 1,573,984,358
1,683,831
14
Commission, exchange and brokerage
Background
Balance as at 31 December 2015
-
-
-
-
25,724,695 2,019,401,515
In particular, information about significant areas of estimation, uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amounts recognised in the
financial statements is described below:
(a)
Provisions for loans and advances
The Bank assesses its loans and advances for objective evidence of impairment on a regular
basis and particularly at year end. While the primary criteria set out in BRPD circular no. 14
dated 23 September 2012, for determining whether a loan are impaired are objective, based on
borrower's ability to make timely repayments, loans and advances may also be classified
based on qualitative judgement. This involves making assessments regarding the economic
environment in which borrowers operate in addition to making judgements about a borrower's
financial condition and net realisable value of any underlying collateral.
(b)
Taxation
The estimation of current tax provision involves making judgements regarding admissibility of
certain expenses as well as estimating the amount of other expenses for tax purposes.
Notes to the Financial Statements
Standard Chartered Bank
Notes to the Financial Statements
Notes to the Financial Statements
4.10 Cash and cash equivalents
6.4 Loans and advances - unclassified and
For the purpose of the cash flow statement, cash and cash equivalents include notes and coins on
hand and balances held with other banks and financial institutions and highly liquid investments that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of
change in value.
Offshore Banking Unit, Bangladesh
Notes to the Financial Statements
as at and for the year ended 31 December 2015
Standard
3.7 Liquidity statement
The liquidity statement of assets and liabilities as on the reporting date has been prepared on the
basis of residual maturity term.
number of new standards and amendments to standards are effective for annual periods beginning
after 1 January 2018 and earlier application is permitted. However, the Bank has not early applied the
following new standards in preparing these financial statements:
Transactions in foreign currencies are translated into the functional currency of the operation at the
spot exchange rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated
into the functional currency at the spot exchange rate at that date. Non-monetary assets and
liabilities denominated in foreign currencies that are measured at fair value are retranslated into the
functional currency at the spot exchange rate at the date that the fair value was determined.
Non-monetary assets and liabilities that are measured in terms of historical cost in a foreign currency
are translated using the exchange rate at the date of the transaction. Foreign currency differences
arising on translation are recognised in the profit and loss account.
(a)
-
-
-
-
-
-
-
-
Bad/loss
-
-
-
-
-
-
-
-
i)
Loans considered good in respect of which
ii)
Loans considered good against which the Bank holds
no security other than the debtor's personal guarantee;
-
7,746,502
608,100,428
2,550,180
198,786,517
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Loans considered good secured by the personal
the personal guarantee of the debtor;
iv)
Loans adversely classified; provision not maintained
v)
Loans due by directors or officers of the Bank or any of
vi)
Loans due from companies or firms in which the directors
there against;
of the Bank have interests as directors, partners or managing
agents or in case of private companies as members;
vii) Maximum total amount of advance including temporary
advance made at any time during the year to directors or
managers or officers of the Bank or any of them either
USD
2014
USD
Taka
viii) Maximum total amount of advances, including temporary
Taka
advances granted during the year to the companies or
firms in which the directors of the Bank have interest as
Balance with other banks and financial institutions
directors, partners or managing agents or in the case
Commission and fee income
The Bank earns commission and fee income from a diverse range of services provided to its
customers. Commission and fee income is accounted for as follows:
-
-
separately or jointly with any other person;
2015
5
-
23,550,000
undertakings of one or more parties in addition to
BFRS 15 establishes a comprehensive framework for determining whether, how much and
when revenue is recognised. lt replaces existing recognition guidance, including BAS 18
Revenue, BAS 11 Construction Contracts and BFRI 13 Customer Loyalty Programmes. BFRS
15 is effective for annual reporting periods beginning on or after 1 January 2018, with early
adoption permitted. The Bank is yet to assess the potential impact of BFRS 15 on its financial
statements.
In accordance with BRPD circular no. 14 dated 23 September 2012, interest accrued on
sub-standard loans and doubtful loans are credited to an interest suspense account which is
included within other liabilities. Interest from loans and advances ceases to be accrued when they
are classified as bad/loss loans. It is then kept in interest suspense in a memorandum account.
income earned on the execution of a significant act is recognised as revenue when the act is
completed
In Bangladesh
30,156,576 2,367,291,232
Outside Bangladesh
17,542,603 1,377,094,370
47,699,179 3,744,385,602
of private companies as members;
28,560,270 2,226,273,058
4,418,254
344,402,887
32,978,524 2,570,675,945
ix)
Due from banking companies
x)
Classified loans for which interest has not been charged:
Inside Bangladesh
Short term deposit account:
Exchange income
Standard Chartered Bank - Onshore, Dhaka
Exchange income includes all gains and losses from foreign currency transactions.
377,484,887 29,632,563,597
a) Increase / decrease of provision (specific)
income earned from services provided is recognised as revenue as the services are provided 4.3 Loans and advances to customers
-
-
-
-
-
-
-
-
Amount realised against loan previously written off
-
-
-
-
1
79
1
78
-
-
-
-
b) Provision against the loan classified as bad / loss
30,156,576 2,367,291,232
28,560,270 2,226,273,058
on the date of preparing the balance sheet
Outside Bangladesh
Loans and advances are non-derivative financial assets with fixed or determinable payments that are
not quoted in an active market and that the Bank does not intend to sell immediately or in the near
term.
xi)
Standard Chartered Bank- London
2,292,749
179,980,813
107,785
8,401,857
709,054
-
55,660,759
-
571,007
-
44,509,995
-
14,540,800 1,141,452,798
3,739,462
291,491,035
17,542,603 1,377,094,370
4,418,254
344,402,887
Standard Chartered Bank- Frankfurt
Standard Chartered Bank- Tokyo
Standard Chartered Bank- New York
Cumulative to-date
The amount of written off loan for which law suit has been filed
7
(i)
2015
2014
Unclassified loans under small and medium enterprise financing (SMEF)
0.25%
0.25%
Unclassified loans under housing finance (HF) and on loans for professionals (LP)
2.00%
2.00%
finance (HF) and loans for professionals (LP)
5.00%
5.00%
Unclassified loans to brokerage houses (BH), merchant banks (MB), stock dealers (SD)
2.00%
2.00%
17,542,603 1,377,094,370
30,156,576 2,367,291,232
Over one month but not more than three months
-
Over three months but not more than one year
Over one year but not more than five years
Over five years
Unclassified loans under consumer financing (CF) other than housing
short-term agricultural and micro-credit scheme
1.00%
1.00%
Unclassified loans under short-term agricultural and micro-credit scheme
2.50%
5.00%
Off-balance sheet exposures
1.00%
1.00%
2015
2014
-
-
-
-
-
-
-
-
-
-
36,544,641 2,868,754,325
Revolving loans
21,742,987 1,706,824,459
Loans against trust receipts
40,165,391 3,152,983,166
2,340,150
183,701,820
100,793,169 7,912,263,770
2,279,411
-
-
100,793,169 7,912,263,770
3,407,259
83,707,017 6,524,961,984
-
Interest receivable - loans and advances
-
5,010,378
393,314,683
3,808,289
5%
100%
100%
159
12,368
-
13,403
1,044,760
230
18,055
116
8,980
4,435
348,147
4,283
333,860
4,509,312
353,980,839
5,133,245
400,136,566
398,406,470
4,500,828
353,314,921
5,111,052
206
16,136
159
12,368
-
-
13,403
1,044,760
3,613
283,580
4,232
330,128
230
18,055
116
8,980
4,435
348,147
4,283
333,860
4,509,312
353,980,839
5,133,245
400,136,566
-
-
100,793,169 7,912,263,770
8,024,968
Security deposits
9
625,546,315
83,707,017 6,524,961,984
6.3 Loans and advances - significant concentration classification
Borrowings from other banks, financial institutions and agents
Money market deposits (Note 9.1)
226,124,645 17,750,784,649
154,243,119 12,023,251,185
Other deposits (Vostro account) (Note 9.2)
212,031,895 16,644,503,739
327,030,185 25,492,002,893
438,156,540 34,395,288,388
481,273,304 37,515,254,078
9.1 Money market deposits
(a) Money market deposits - Call
6.3.1 Customers' group wise classification
-
-
-
-
-
-
29,928
2,332,895
155,255,435 12,187,551,665
99,053,469
7,721,217,943
55,159,722
4,299,700,347
(b) Money market deposits - Term
Loans and advances to small and medium enterprises
11,380,413
198,786,516
Pubali Bank Ltd - Dhaka
Loans and advances to corporate customers
476,003,266 37,366,256,366
505,224,454 39,382,246,178
Nepal Rastra Bank KTM
487,383,679 38,259,618,787
507,774,634 39,581,032,694
Royal Monetary Authority of Bhutan
893,362,421
2,550,180
70,869,210
5,563,232,984
226,124,645 17,750,784,649
Loans and advances to small and medium enterprises - product wise classification
Term loans
642,315
50,421,760
-
-
Revolving Loan
629,006
49,376,948
-
-
Loans against trust receipts
716,279
56,227,913
-
-
Overdraft
581,623
45,657,427
1,655,134
129,017,712
8,811,189
691,678,372
895,046
69,768,804
11,380,413
893,362,421
2,550,180
198,786,516
9.2
154,243,119 12,023,251,185
Other deposits (Vostro account)
(a) Group Vostro
Standard Chartered Bank - Onshore, Dhaka
Standard Chartered Bank - London
Standard Chartered Bank-Tokyo
-
-
212,000,000 16,642,000,000
31,895
2,503,739
212,031,895 16,644,503,739
(b) Non Group Vostro
4.5 Provisions on nostro accounts
-
-
212,031,895 16,644,503,739
227,000,000 17,694,650,000
100,000,000
7,795,000,000
30,185
2,352,893
327,030,185 25,492,002,893
-
-
327,030,185 25,492,002,893
Loans and advances to corporate customers - product wise classification
Term loans
35,902,326 2,818,332,564
Revolving loans
21,113,981 1,657,447,511
Loans against trust receipts
39,449,112 3,096,755,253
Overdraft
Bill purchased and discounted
1,758,527
138,044,394
27,107,132 2,113,000,900
2,279,411
9.3
423,172,571 32,986,301,906
476,003,266 37,366,256,366
505,224,454 39,382,246,178
Manufacturing
-
-
105,938,792 8,316,195,190
-
227,029,928 17,696,982,895
254,243,376 19,818,271,183
438,156,540 34,395,288,388
481,273,304 37,515,254,078
(i) Secured
212,031,895 16,644,503,739
327,030,185 25,492,002,893
(ii) Unsecured
226,124,645 17,750,784,649
154,243,119 12,023,251,185
438,156,540 34,395,288,388
481,273,304 37,515,254,078
136,578,134
377,779,320 29,655,676,644
Agriculture, hunting, forestry and fishing
-
438,156,540 34,395,288,388
(ii) Outside Bangladesh
50,913,215 3,968,685,146
1,752,125
Borrowings from other banks, financial institutions and agents - inside and outside Bangladesh
(i) Inside Bangladesh
177,680,092
9.4
6.3.2 Loans and advances - sector wise classification
-
104,436,255 8,140,806,085
9.5
-
Classification under secured / unsecured borrowing
Residual Maturity - wise classification
Electricity, gas and water
-
-
-
-
Payable on demand
Construction
-
-
-
-
Payable within 1 month
-
-
-
-
-
Payable within 1 to 3 months
310,860,000
-
-
Payable within 3 to 12 months
Community, social and personal services
-
-
-
-
Payable within 1 to 5 years
-
Financing, insurance and business service
-
-
-
-
Payable over 5 years
-
Transport and communications
Banks
377,484,887 29,632,563,597
403,338,379 31,440,226,609
487,383,679 38,259,618,787
507,774,634 39,581,032,694
Dhaka
487,383,679 38,259,618,787
507,774,634 39,581,032,694
487,383,679 38,259,618,787
507,774,634 39,581,032,694
80,475,985
10
-
-
357,060,113 27,832,835,788
6,317,364,799
69,053,469
5,382,717,943
217,426,558 17,067,984,852
55,159,722
4,299,700,347
-
-
-
-
-
-
438,156,540 34,395,288,388
481,273,304 37,515,254,078
Deposits and other accounts
Current and other accounts
6.3.3 Loans and advances - geographical location wise classification
-
140,253,997 11,009,938,737
3,960,000
Commerce / trading
Contingent liabilities are not recognised but disclosed in the financial statements unless the
possibility of an outflow of resources embodying economic benefits is reliably estimated.
Financial assets and financial liabilities are offset and the net amount presented in the balance sheet
when there is a legally enforceable right to offset the recognised amounts; there is an intention either
to settle on a net basis, or realise the asset and settle the liability simultaneously.
16,136
-
Suspense account
296,856,115
5%
4.9 Off setting financial assets and financial liabilities
206
Commission receivable
18,371,400 1,432,050,634
A provision is recognised if, as a result of a past event, the Bank has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will
be required to settle the obligation.
330,128
398,406,470
Stationery, stamps, printing materials in stock
33,501,818 2,629,892,683
4.8 Provisions for liabilities and charges
4,232
5,111,052
Interest receivable - SCB Branches
83,707,017 6,524,961,984
More than 1 year but not more than 5 years
Interest expenses for all deposits are recognised in the profit and loss account on an accrual basis.
-
283,580
Security deposits
83,707,017 6,524,961,984
100%
Interest expense on deposits
-
424,067,617 33,056,070,710
353,314,921
Commission receivable
265,595,846
100%
Deposits are the Bank’s principal source of debt funding. Deposits are initially measured at fair value
and subsequently measured at amortised cost.
-
3,613
Suspense account
50,913,215 3,968,685,146
13,837,133 1,078,604,486
4.7 Deposits by customers and banks
372,598,984
4,500,828
Interest receivable - SCB Branches
6.2 Loans, cash credit, overdraft, etc. - residual maturity grouping
Bill purchased and discounted
4,779,974
Other assets
Interest receivable - loans and advances
177,680,092
39,665,227 3,091,904,434
Borrowings from other banks, financial institutions and agents includes interest-bearing borrowings
from Bangladesh Bank and other banks and call borrowing from other banks. These items are
brought to financial statements at the gross value of the outstanding balance.
-
386,590,510 30,347,355,016
27,107,132 2,113,000,900
20,836,879 1,635,695,026
4.6 Borrowings from other banks, financial institutions and agents
889,562,148
32,978,524 2,570,675,945
41,444,094 3,253,361,378
Unsettled debit transactions (as per Bank's book and nostro statements) for more than three months
on nostro accounts are reviewed at each balance sheet date by management and provisions are kept
in accordance with Bangladesh Bank Foreign Exchange Policy Department, circular no. FEPD
(FEMO)/01/2005-677 dated 13 September 2005.
11,332,002
167,715,805 13,073,446,987
More than 3 months but not more than 1 year
BRPD circular no. 14 dated 25 June 2001 requires a provision of 100% on other assets which are
outstanding for one year and above. The Bank maintains provisions in line with this circular unless
it assesses there is no doubt of recovery on items of other assets in which case no provision is
kept.
Repayable within 1 month
137,562,587 10,798,663,050
Not more than 3 months
4.4 Provisions for other assets
Maturity wise
6 months or more
50%
Loans are normally written off, when there is no realistic prospect of recovery of these amounts and
in accordance with BRPD circular no. 02 dated 13 January 2003 and BRPD circular no. 13 dated 7
November 2013.
-
Over 3 months but less than 6 months
20%
4.3.2 Loan write-off
-
424,067,617 33,056,070,710
-
50%
The above rates are the minimum prescribed rates. BRPD circular no. 14 dated 23 September 2012
also provides scope for further provisioning based on qualitative judgements. If the specific
provisions assessed under the qualitative methodology are higher than the specific provisions
assessed under the formulaic approach above, the higher of the two is recognised.
424,067,617 33,056,070,710
-
20%
Bad / loss loans and advances
-
8.1 Other assets which are not capable of earning income (non interest bearing other assets)
100,793,169 7,912,263,770
More than 5 years
-
251,571,838 19,610,024,739
Doubtful loans and advances
Substandard and Doubtful loans and advances
-
237,695,921 18,659,129,818
Substandard loans and advances
Short-term agricultural and micro-credits:
-
Over 1 month but less than 3 months
6.1 Loans, cash credit, overdraft, etc. - inside and outside Bangladesh
Outside Bangladesh
-
-
Stationery, stamps, printing materials in stock
Term loans
Repayable on demand
Specific provision on:
-
Loans, cash credit, overdrafts, etc.
Inside Bangladesh
In accordance with BRPD circular no. 05 dated 29 May 2013, the rates of provision on the
outstanding amount of loans kept in the 'Special Mention Account' will be the same as the rates
stated above depending on the types of loans and advances.
(ii)
8
6
Overdraft
All unclassified loans except under SMEF, HF, LP, CF, BH, MB, SD and
344,402,887
-
3,517,141
386,590,510 30,347,355,016
28,560,270 2,226,273,058
-
47,699,179 3,744,385,602
General provision on:
4,418,254
45,120
386,590,510 30,347,355,016
Repayable outside Bangladesh
Not more than one month
3,517,141
Inside and outside Bangladesh
Repayable in Bangladesh
5.1 Residual maturity
Repayable on demand
44,804
Bills purchased and discounted
4.3.1 Provisions on loans and advances
At each balance sheet date and periodically throughout the year, the Bank reviews loans and
advances to assess whether objective evidence that impairment of a loan or portfolio of loans has
arisen supporting a change in the classification of loans and advances, which may result in a change
in the provision required in accordance with BRPD circular no. 14 dated 23 September 2012, BRPD
circular no. 19 dated 27 December 2012 and BRPD circular no. 05 dated 29 May 2013 and BRPD
circular no. 16 dated 18 November 2014. The guidance in the circulars follow a formulaic approach
whereby specified rates are applied to the various categories of loans as defined in the circular. The
provisioning rates are as follows:
Loans written off:
Current year
Group nostro- current account:
Loans and advances are initially measured at fair value, and subsequently measured at amortised
cost. These are stated gross, with accumulated specific and general provisions for loans and
advances being shown under other liabilities.
403,338,379 31,440,226,610
Amount of loans written off
c) Amount of interest charged in suspense account
Bad / loss and advances
507,774,634 39,581,032,694
300,000
these either separately or jointly with any other persons;
Interest is accrued on a daily basis and applied to customer accounts every month, quarter and at
maturity depending on the product offerings.
-
Doubtful
iii)
BFRS 15 Revenue from Contracts with Customers
The effective interest rate is the rate that exactly discounts the estimated future cash payments and
receipts through the expected life of the financial asset or liability (or, where appropriate, a shorter
period) to the carrying amount of the financial asset or liability.
-
507,774,634 39,581,032,694
Substandard
the Bank is fully secured;
BFRS 9 Financial lnstruments
(b)
507,774,634 39,581,032,694
6.5 Particulars of loans and advances
Interest income on loans and advances
Interest income is recognised in profit and loss using the effective interest method.
-
487,383,679 38,259,618,787
BFRS 9 published in July 2014, replaces the existing guidance in BAS 39 Financial lnstruments:
Recognition and Measurement. BFRS 9 includes revised guidance on the classification and
measurement of the financial instruments, a new expected credit loss model for calculating
impairment of financial assets, and the new general hedge accounting requirements. lt also
carries forward the guidance on recognition and derecognition of financial instruments from
BAS 39. BFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018,
with early adoption permitted. The Bank is yet to assess the potential impact of BFRS 9 on its
financial statements,
4.2 Revenue recognition
Taka
Classified
The Bank has consistently applied the accounting policies as set out in Note 4 to all periods
presented in these financial statements. The various amendments to standards, including any
consequential amendments to other standards, with the date of initial application of 1 January 2015
have been considered. However, these amendments have no material impact on the financial
statements of the Bank.
4.1 Foreign currencies
-
487,383,679 38,259,618,787
4.12 New accounting standards not yet adopted
Significant accounting policies
2014
USD
Taka
487,383,679 38,259,618,787
Special mention account (SMA)
Income tax expense comprises current tax. Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and
any adjustment to tax payable in respect of prior years.
The cash flow statement has been prepared in accordance with the BAS 7 considering the
requirements specified in the BRPD circular no. 14 dated 25 June 2003.
2015
USD
Unclassified
4.11 Taxation
3.6 Cash flow statement
4
classified classification
32,353,773
2,539,771,182
15,196,167
Term deposits
-
-
-
1,184,541,240
-
Other deposits
252,838
19,847,767
452,831
35,298,147
32,606,611
2,559,618,949
15,648,998
1,219,839,387
Notes to the Financial Statements
Notes to the Financial Statements
10.1 Residual maturity grouping of deposits and other
2015
accounts (Other than bank deposit)
USD
USD
2015
Taka
17 Related party transactions
2014
Taka
Notes to the Financial Statements
Taka
17.1 Related parties
Payable on demand
31,021,647 2,435,199,325
-
-
-
-
Payable within more than 1 month but less than 6 months
-
-
-
-
Payable within more than 6 months but less than 1 year
Payable within more than 1 year but within 5 years
-
-
-
-
1,584,964
124,419,624
4,168
324,856
-
-
-
-
Payable within more than 5 years but within 10 years
32,606,611 2,559,618,949
11
15,644,830 1,219,514,531
Payable within 1 month
15,648,998 1,219,839,387
Other liabilities
Interest payable
370,801
Interest received in advance
Tax deducted at source
29,107,896
263,217
20,517,775
-
-
-
-
227,959
17,894,786
137,342
10,705,817
5,943,176
466,539,244
5,920,889
461,533,330
1
79
1
78
Provision for loans and advances and off balance sheet
exposures (Note - 11.1)
Specific Provision for loans and advances
Suspense account
15,433
Intra branch balances in Bangladesh
1,211,499
24,179,829 1,898,116,584
Income tax provision (Note - 11.2)
711,123,185
8,710,160
678,956,943
21
1,669
19
1,469
Unamortised Fees / Costs
Sundry Creditors Client-Manual
Others
-
9,058,894
VAT payable
Disputed tax on profit remittance
-
17,906,226 1,395,790,320
-
-
9,459
737,296
2,759,753
216,640,636
2,759,753
215,122,772
519,398
40,759,698
-
-
29,059
2,281,100
12,853
1,001,916
43,104,324 3,383,676,375
35,719,919 2,784,367,716
The related parties of the off-shore banking unit include Standard Chartered (SC Plc), other SCB
group entities including SCB Bangladesh Branches onshore banking unit, key management
personnel of SC Plc and the Bank as well as their close family members.
17.2 Transactions with key management personnel
The key management personnel of the Bank for the purposes of BAS 24 are defined as those persons
having authority and responsibility for planning, directing and controlling the Bank. SCB offshore
banking unit, not being incorporated locally, operate in Bangladesh under the banking licence issued
by Bangladesh Bank and therefore for this Bank the key management personnel, who do qualify as
related party under BAS 24, refer to SCB officials located outside Bangladesh.
There were no transactions between the Bank and the key management personnel in 2015 (2014 nil).
USD 1
=
78.5
77.95
EUR 1
=
85.7495
94.7853
JPY 1
=
0.6521
0.6513
GBP 1
=
116.4234
121.068
SGD 1
=
55.5752
58.888
AUD 1
=
57.4581
63.6774
CAD 1
=
56.5562
67.0437
NOK 1
=
8.9198
10.4793
HKD 1
=
10.1278
10.0492
DKK 1
=
11.4926
12.7342
SEK 1
=
9.349
9.9626
SAR 1
=
20.911
20.7701
MYR 1
=
24.4793
24.4793
19.2 Figures of previous year have been rearranged whenever considered necessary to conform to current year's
presentation.
17.3 Transactions with group entities other than the SCB Bangladesh on-shore banking unit
The bank provides and receives certain banking and financial services to / from entities within the
Group. As at the year end the balances with these entities is disclosed in Notes - 5 and 9.
19.3 Figures appearing in these accounts have been rounded off to the nearest integer.
20
17.4 Transactions with the on-shore banking unit
Highlights on the overall activities
Highlights on the overall activities of the Bank have been furnished in Annexure - C.
Transactions with the on-shore banking unit comprise of inter-unit fund transfers in the normal
course of business as well as the defrayal of certain expenses by the on-shore banking unit on behalf
of the OBU. These include income taxes paid by the Bank on behalf of the OBU as well as expenses
incurred for administrative purposes. The year end balances of transactions with OBU are disclosed
in Notes - 5, 9 and 11.
21
Events after the balance sheet date
There are no material events that had occurred after reporting period to the date of issue of these financial
statements, which could affect the figures stated in the financial statements.
18 Contingencies
There are no material contingent liabilities at the year end, other than those disclosed as off balance
sheet Items on the balance sheet.
Abrar A. Anwar
Chief Executive Officer, Bangladesh
19 General
19.1 The assets and liabilities as at 31 December 2015 in foreign currencies have been converted to BDT
at the following rates:
11.1 Provision for loans and advances and off balance sheet exposures
2014
Taka
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
Dhaka, 28 April 2016
Movement in general provision for unclassified
loans and advances
Opening balance
5,920,890
461,533,330
4,889,661
380,220,090
Provision charged / (released) during the year
(167,530)
(13,151,134)
988,584
77,060,130
231,300
18,157,048
54,562
4,253,110
63,770
5,005,914
1,043,146
81,313,240
(41,484)
-
(11,918)
-
5,943,176
466,539,244
5,920,889
461,533,330
Liquidity Statement
charged / (released) during the year
Charge in profit and loss account
Translation adjustments
Total General provisions
Offshore Banking Unit, Bangladesh
Liquidity Statement
(Asset and Liability Maturity Analysis)
as at 31 December 2015
Maturity
up to 1 month
Movement in specific provision for bad and
Particulars
doubtful debts
USD
Opening balance
1
78
1
78
Provision made during the year
-
-
-
-
Recovery against fully provided loans
-
-
-
-
Assets
Net charge in profit and loss account
-
-
-
-
Cash in hand
Fully provided loan written off
-
-
-
-
Recovery of loans previously written-off
-
-
-
-
Balance with other banks
and financial institutions
Translation increase / (decrease)
-
-
-
-
Total specific provisions
1
78
1
78
5,943,177
466,539,322
5,920,890
461,533,408
Total provisions
General provision
2015 only
On off balance sheet exposures- @ 1%
8,394,305,596
1,069,338
83,943,056
843,951
65,786,008
38,259,618,787
4,873,837
382,596,188
5,076,938
395,747,322
-
-
-
-
-
5,943,175
466,539,244
5,920,889
461,533,330
On loans and advances (excluding SMA)
- at various rates
Special mention accountsat various rates
17,542,603
USD
-
1,377,094,370
Maturity within
3 to 12 months
Taka
-
USD
-
30,156,576
2,367,291,232
Maturity within
1 to 5 years
Taka
USD
Maturity
over 5 years
Taka
USD
Total
Taka
USD
-
-
-
-
-
-
-
-
-
-
-
-
Taka
-
-
47,699,179
3,744,385,602
Money at call and
short notice
-
-
-
-
-
-
-
-
-
-
-
-
Investment
-
-
-
-
-
-
-
-
-
-
-
-
-
-
16,342,380
Fixed assets including
premises, furniture
and fixtures
Base for provision
Maturity within
1 to 3 months
Taka
-
Loans and advances
11.1.1 Adequacy of provision vis a vis provision required to be maintained
Annexure - A
Standard Chartered Bank
Provision on off-balance sheet exposures
1,282,876,831
-
Other assets
4,509,312
Non-banking assets
353,980,839
-
Total assets
-
279,140,015 21,912,491,196
158,399,466 12,434,358,076
33,501,818 2,629,892,683
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
38,394,295
3,013,952,040
309,296,591 24,279,782,428
140,253,997
11,009,938,737
31,021,647
2,435,199,325
-
-
43,104,324
3,383,676,375
-
-
214,379,968
16,828,814,437
158,399,466 12,434,358,076
33,501,818 2,629,892,683
487,383,679 38,259,618,787
-
-
4,509,312
353,980,839
-
-
-
-
539,592,170 42,357,985,227
-
-
-
-
438,156,540 34,395,288,388
Liabilities
Specific provision
On sub-standard loans and advances @ 20%
-
-
-
-
On doubtful loans and advances @ 50%
-
-
-
-
On bad / loss loans and advances - @ 100%
-
-
-
-
-
-
-
-
Total provision required to be maintained
5,943,175
466,539,244
5,920,889
461,533,330
Total provision maintained
5,943,177
466,539,322
5,920,890
461,533,408
2
78
1
78
Excess / (deficit) provision at 31 December 2015
12
Opening balance
8,649,133
678,956,943
6,840,392
531,908,851
Provision made during the year
9,059,801
711,194,385
8,711,067
679,027,951
(8,650,040)
(679,028,143)
(6,841,299)
(531,979,859)
9,058,894
711,123,185
8,710,160
678,956,943
Revolving loans
Loans against trust receipts
Overdraft
Bills discounted and purchased
Export finance
Bank placement
Interest received on money market loans
Net liquidity gap
(175,985,673) (13,814,862,398)
6,317,364,799
80,475,985
6,317,364,799
228,820,607 17,962,417,629
1,453,235
113,305,396
1,351,706
104,912,554
109,290
8,530,336
54,286
4,209,396
1,692,580
131,951,801
2,112,170
163,943,207
133,226
10,389,841
171,585
13,325,867
18,680,428 1,455,632,281
Fixed deposits
-
-
-
-
2,019,401,515
-
-
243,151,253 19,087,386,366
-
-
-
25,724,695
-
1,584,964
124,419,624
1,584,964
124,419,624
32,606,611
2,559,618,950
68,829,019
5,403,077,890
539,592,170 42,357,985,227
(84,751,787) (6,653,028,290) 33,501,818 2,629,892,683 (1,584,964) (124,419,624)
222,971
17,384,439
50,090
3,890,674
36,569
2,851,800
20,460
1,587,816
-
-
-
-
20,278,293 1,573,984,358
2,416,037
188,303,903
1,181,025
91,647,008
-
-
-
-
2,416,037
188,303,903
1,181,025
91,647,008
1,683,831
143,472,901
1,556,687
127,585,206
1,683,831
143,472,901
1,556,687
127,585,206
0
0
Balance with other banks and financial institutions
Annexure - B
Offshore Banking Unit, Bangladesh
Balance with other banks and financial institutions
as at 31 December 2015
16,517,996 1,282,114,844
Interest expense on deposits and borrowings
Money market deposits
217,426,558 17,067,984,852
Standard Chartered Bank
22,328,299 1,740,045,894
14
Provision and other
liabilities
(including equity)
80,475,985
Interest income
Term loans
13
Deposits and other
accounts
Total liabilities
11.2 Provision for income tax
Amount paid during the year
Borrowings from other
banks and financial
institutions
Currency
name
Particulars
31-Dec-14
31-Dec-15
Foreign
currency
Exchange
rate
Equivalent
local currency
Foreign
currency
Exchange
rate
Equivalent
local currency
2,226,273,059
Standard Chartered Bank - DBU Dhaka
USD
30,156,576
78.50
2,367,291,232
28,560,270
77.95
Standard Chartered Bank- London
GBP
1,545,916
116.42
179,980,813
69,398
121.07
8,401,856
Standard Chartered Bank- Frankfut
EUR
649,109
85.75
55,660,759
469,588
94.79
44,509,996
Standard Chartered Bank- Tokyo
JPY
Standard Chartered Bank- New York
USD
-
0.652
14,540,800
78.50
Total
-
-
1,141,452,798
0.651
3,739,462
77.95
3,744,385,603
291,491,036
2,570,675,947
Commission, exchange and brokerage
Commission and exchange income (loss)*
Financial Highlights 2015
Annexure - C
Standard Chartered Bank
Offshore Banking Unit, Bangladesh
*Commission and exchange income (loss) include commission income of Tk 131,265,960 (2014: Tk 120,825,944).
Financial Highlights 2015
15
Other expenses
Travelling and transportation
1,934
150,752
4,981
386,562
Support services
708
55,100
31
2,418
Subscription
304
23,718
224
17,395
Entertainment
2,005
156,249
1,587
123,162
Security services
8,485
663,918
12,480
968,500
Interest on leases
1,279
99,732
3,397
263,697
-
-
54
4,187
16,697
1,301,524
14,587
31,412
2,450,993
37,341
Computer expenses
Sundry expenses
16
Balance with Bangladesh Bank and its agent banks
Balance with other banks and financial institutions
-
-
-
-
2015
Particulars
USD
1
Total assets
2014
Taka
539,592,170
USD
42,357,985,227
Taka
545,886,403
42,551,845,206
2
Total deposits
32,606,611
2,559,618,949
15,648,998
1,219,839,387
3
Total loans and advances
487,383,679
38,259,618,786
507,774,634
39,581,032,694
4
Total contingent liabilities and commitments
106,933,829
8,394,305,596
84,395,136
6,578,600,835
1,131,533
5
Percentage of classified loans against total loans and advances
2,897,454
6
Net profit after tax
Cash and cash equivalents
Cash in hand (including foreign currencies)
Sl.
-
-
-
0%
0%
0%
0%
12,257,213
962,204,166
10,742,410
837,370,909
7
Amount of classified loans during current year
8
Provisions kept against classified loans
1
78
1
78
9
Provision surplus / deficit
2
78
1
78
-
10
Interest expenses
47,699,179 3,744,385,602
32,978,524 2,570,675,945
11
Interest bearing assets
47,699,179 3,744,385,602
32,978,524 2,570,675,945
12
Non-interest bearing assets
-
-
-
-
2,416,037
188,303,903
1,181,025
91,647,008
517,540,255
40,626,910,018
536,334,904
41,807,305,752
22,051,915
1,731,075,209
9,551,499
744,539,453
Standard Chartered Bank
Saadiq Branch
Financial Statements 2015
Independent Auditor's Report
Independent Auditor's Report to the Management of
Standard Chartered Bank
Saadiq Branch
Standard Chartered Bank
Standard Chartered Bank
Saadiq Branch
Saadiq Branch
Management’s Responsibility for the Financial Statements and Internal Controls
Management is responsible for the preparation of financial statements that give a true and fair view in accordance with
Bangladesh Financial Reporting Standards as explained in note 3.2, and for such internal control as management
determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error. The Bank Company Act, 1991 and the Bangladesh Bank regulations require the
management to ensure effective internal audit, internal control and risk management functions of the Bank. The
management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report
to Bangladesh Bank on instances of fraud and forgeries.
Auditor's Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with Bangladesh Standards on Auditing. Those standards require that we comply with ethical requirements
and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on our judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, we consider
internal control relevant to the entity’s preparation of financial statements that give a true and fair view in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting
policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall
presentation of the financial statements of the Bank.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
Opinion
In our opinion, the financial statements give a true and fair view of the financial position of the Bank as at 31 December
2015, and of its financial performance and its cash flows for the year then ended in accordance with Bangladesh
Financial Reporting Standards as explained in note 3.2.
Report on Other Legal and Regulatory Requirements
In accordance with the Companies Act, 1994, the Bank Company Act, 1991 and the rules and regulations issued by
Bangladesh Bank, we also report the following:
(a) we have obtained all the information and explanation which to the best of our knowledge and belief were
necessary for the purpose of our audit and made due verification thereof;
(b) to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s
Responsibility section in forming the above opinion on the financial statements of the Bank and considering the
reports of the management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries
as stated under the Management’s Responsibility for the Financial Statements and Internal Controls section:
i) internal audit, internal control and risk management arrangements of the Bank appeared to be materially
adequate; and
ii) nothing has come to our attention regarding material instances of forgery or irregularity or administrative
error and exception or anything detrimental committed by employees of the Bank;
(c) in our opinion, proper books of account as required by law have been kept by the Bank so far as it appeared
from our examination of those books;
(d) the balance sheet and the profit and loss account dealt with by the report are in agreement with the books of
account;
(e) the financial statements of the Bank have been drawn up in conformity with prevailing rules, regulations and
accounting standards as well as with related guidance issued by Bangladesh Bank;
(f) adequate provisions have been made for investments which are, in our opinion, doubtful of recovery;
(g) the records and statements submitted by the branches have been properly maintained and consolidated in
the financial statements;
(h) the information and explanation required by us have been received and found satisfactory; and
(i) we have reviewed over 80% of the risk weighted assets of the Bank and we have spent around 100 person
hours for the audit of the books and accounts of the Bank.
Notes to the Financial Statements
as at and for the year ended 31 December 2015
Profit and Loss Account
for the year ended 31 December 2015
Report on the Financial Statements
We have audited the accompanying financial statements of Standard Chartered Bank, Saadiq Branch (“the Bank")
which comprise the balance sheet as at 31 December 2015, and the profit and loss account, cash flow statement and
statement of changes in equity for the year then ended, and a summary of significant accounting policies and other
explanatory information.
1
2015
Taka
Notes
Standard Chartered Bank (SCB), Bangladesh, Islamic Banking Unit (""the Bank"") commenced its banking
operations in Bangladesh on 26 February 2004 after obtaining the banking license on 18 November 2003
from Bangladesh Bank, the Central Bank of Bangladesh.
2014
Taka
Investment income
12
630,309,972
658,842,659
Profit paid on deposits
13
208,481,828
271,309,366
421,828,144
387,533,293
Net investment income
Income/(loss) from investments in shares and securities
14
(9,283,012)
10,609,036
Commission, exchange and brokerage
15
279,532,883
252,611,178
Other operating income
Total operating income
-
-
270,249,871
263,220,214
692,078,015
650,753,507
1,492,420
4,895,547
4,833,312
4,677,352
15,965
-
Salary and allowances
16
Rent, taxes, insurances, electricity etc.
Legal expenses
Postage, stamps and telecommunication etc.
17
164,339
220,322
Stationery, printing and advertisement etc.
18
105,556
545,676
Repair, maintenance and depreciation
19
3,227,646
4,339,804
Other operating expenses
20
1,845,674
2,002,084
11,684,912
16,680,785
680,393,103
634,072,722
26,866,283
55,474,918
Total operating expenses
Profit/(loss) before provision
Provision for investments and off balance sheet exposures 11.1
Other provisions
Total provision
Total profit/(loss) before tax
Provision for income tax
11.3
Net profit/(loss) after tax for the year
Background
-
-
26,866,283
55,474,918
653,526,820
578,597,804
289,167,068
269,480,907
364,359,752
309,116,897
Standard Chartered Bank (SCB), Bangladesh Branches commenced its banking operations in Dhaka in
1948 after obtaining license from the central bank. Standard Chartered Bank is incorporated in England by
Royal Charter 1853.
2
Nature of business
Standard Chartered Bank offers Islamic financial solutions under the brand name 'Saadiq'. Currently the
Bank is offering both deposit products and financing products.
3
Basis of preparation
3.1 Reporting period
These financial statements cover one calendar year from 1 January 2015 to 31 December 2015. These
financial statements are authorised for issue by management of Standard Chartered Bank on 28 April 2016.
3.2 Statement of compliance
The Financial Reporting Act 2015 (FRA) has been enacted during the year. Under the FRA, the Financial
Reporting Council (FRC) is to be formed and it is to issue financial reporting standards for public interest
entities such as banks. The Bank Companies Act 1991 has been amended to require banks to prepare their
financial statements under such financial reporting standards.
The FRC is yet to be formed and as such no financial reporting standards have been issued as per the
provisions of the FRA. Hence, the financial statements of the Bank continue to be prepared in accordance
with Bangladesh Financial Reporting Standards (BFRS) and the requirements of the Bank Companies Act
1991, the rules and regulations issued by Bangladesh Bank and the Companies Act 1994. In case any
requirement of the Bank Companies Act 1991, and provisions and circulars issued by Bangladesh Bank
differ with those of BFRS, the requirements of the Bank Companies Act 1991, and provisions and circulars
issued by Bangladesh Bank shall prevail. Material deviations from the requirements of BFRS are as follows:
i)
The annexed notes 1 to 24 form an integral part of these financial statements.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, investments in quoted shares and
unquoted shares are revalued at the year end at market price and as per book value of last audited balance
sheet, respectively. Provision should be made for any loss arising from diminution in value of investment.
ii)
Abrar A. Anwar
Chief Executive Officer, Bangladesh
As per our report of same date.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any
gains on revaluation of securities which have not matured as at the balance sheet date are recognised
in other reserves as part of equity and any losses on revaluation of securities which have not matured
as at the balance sheet date are charged in the profit and loss account. Profit on HFT securities
including amortisation of discount are recognised in the profit and loss account. HTM securities which
have not matured as at the balance sheet date are amortised at the year end and gains or losses on
amortisation are recognised in other reserve as a part of equity.
Rahman Rahman Huq
Chartered Accountants
Cash Flow Statement
Balance Sheet
iii) Provision on investments
Standard Chartered Bank
Standard Chartered Bank
Balance Sheet
as at 31 December 2015
Cash Flow Statement
for the year ended 31 December 2015
PROPERTY AND ASSETS
Notes
Cash
Cash in hand (including foreign currencies)
Balance with Bangladesh Bank and its agent banks
(including foreign currencies)
2015
Taka
2014
Taka
2,626,385
2,516,289
5
A)
1,020,000,000
1,022,626,385
Cash flows from operating activities
Investment income
430,000,000
432,516,289
Commission, exchange and brokerage received
Cash paid to employees
Cash paid to suppliers
Balance with other banks and financial institutions
In Bangladesh
Outside Bangladesh
-
-
-
360,000,000
360,000,000
5,851,467,007
5,851,467,007
5,798,275,308
5,798,275,308
Placements with banks and other financial institutions
6
Investments
General investments etc.
Bills purchased and discounted
7
Income tax paid
Operating profit before changes in operating assets and liabilities
8
329,475
633,605
Other assets
Non-banking assets
Total assets
9
1,329,125,016
8,203,547,883
1,098,963,748
7,690,388,950
663,277,780
(318,411,069)
286,904,176
242,828,318
(1,492,420)
(4,895,547)
(13,007,328)
(11,481,107)
(269,480,907)
(212,597,803)
422,529,807
358,720,571
(102,936,602)
(1,091,917,139)
-
Other assets
726,139,299
(255,285,570)
-
-
-
324,706,510
360,745,194
Investments to other banks and financial institutions
Deposits received from customers
Deposits from other banks and financial institutions
B)
-
-
Other liabilities
201,720,346
(737,076,048)
Net cash receipt/(payment) from changes in operating assets and liabilities
168,204,684
(742,108,694)
Net cash from operating activities
590,734,491
(383,388,122)
-
-
363,735,356
251,758,430
-
-
Cash flow from investing activities
Income from investments
Investment in Islamic bond
Purchase of fixed assets
11
Total liabilities
-
-
620,977,265
5,333,407,272
873,431,149
21,363,873
3,305,566
6,852,485,125
589,409,984
4,950,507,049
983,490,711
3,965,069
405,803
6,527,778,616
1,351,062,758
1,162,610,334
8,203,547,883
Total liabilities and equity
Net cash used in investing activities
-
-
363,735,356
251,758,430
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once an investment is
classified, profit/rent on such investments are not allowed to be recognised as income; rather the
corresponding amount needs to be credited to profit/rent suspense account, which is presented as
liability in the balance sheet.
v)
Other comprehensive income
BFRS: As per BAS 1 Presentation of Financial Statements, Other Comprehensive Income (OCI) is a
component of financial statements or the elements of OCI are to be included in a single Other
Comprehensive Income Statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which are to be
followed by all banks. The templates for financial statements issued by Bangladesh Bank do not
include OCI nor are the elements of OCI allowed to be included in a single other comprehensive
income statement. As such the Bank does not prepare the other comprehensive income statement.
However, elements of OCI, if any, are shown in the statements of changes in equity.
vi) Financial instruments – presentation and disclosure
Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments
differently from those prescribed in BAS 32 Financial Instruments: Presentation, BAS 39 and BFRS 7
Financial Instruments: Disclosures. As such full disclosure and presentation requirements of BFRS 7
and BAS 32 are not made in the financial statements.
BFRS: As per BAS 7 Statement of Cash Flow, cash flow statement can be prepared using either the
direct method or the indirect method. The presentation is selected to present cash flows in a manner
that is the most appropriate for the business or industry. The method selected is applied consistently.
Cash flow from financing activities
Profit transferred to Onshore Banking Unit
(364,359,752)
(309,116,897)
Net cash flow from financing activities
(364,359,752)
(309,116,897)
Bangladesh Bank: As per BRPD circular no. 15 dated 9 November 2009, cash flow is the mixture of
direct and indirect methods.
Net increase/(decrease) in cash and cash equivalents (A+B+C)
590,110,094
(440,746,590)
E)
Effect of exchange rate changes on cash and cash equivalents
-
-
BFRS: As per BFRS there is no requirement for disclosure of off-balance sheet items on the face of the
balance sheet.
7,690,388,950
F)
Opening cash and cash equivalents
432,516,289
873,262,879
Bangladesh Bank: As per BRPD circular no. 15 dated 9 November 2009, off-balance sheet items (e.g.
letter of credit, letter of guarantee etc.) must be disclosed separately on the face of the balance sheet.
-
-
G)
Closing cash and cash equivalents (D+E+F) (Note 21)
1,022,626,385
432,516,289
8,203,547,883
7,690,388,950
viii) Off-balance sheet items
Other commitments
1,422,516,477
1,063,802,963
2,486,319,440
-
1,337,216,845
779,732,130
2,116,948,975
-
Total off-balance sheet items
2,486,319,440
2,116,948,975
The annexed notes 1 to 24 form an integral part of these financial statements.
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
As per our report of same date.
ix) Investments net of provision
BFRS: As per BAS 39, loans and advances should be presented net of impairment loss.
Bangladesh Bank: As per BRPD circular no. 15 dated 9 November 2009, provision on investments is
presented separately as liability and can not be netted off against investments.
Statement of Changes in Equity
Standard Chartered Bank
3.3 Basis of measurement
Saadiq Branch
Rahman Rahman Huq
Chartered Accountants
BFRS: Loans and advances to customers are generally classified as loans and receivables as per BAS
39 and interest income on loans and advances is recognised through effective interest method over the
term of the loan. Once a loan is impaired, interest income is recognised in the profit and loss account
on the same basis based on revised carrying amount.
vii) Cash flow statement
C)
OFF-BALANCE SHEET ITEMS
Contingent liabilities
Acceptances and endorsements
Irrevocable letters of credit
iv) Recognition of profit/rent suspense
D)
Equity
Paid up capital
Statutory reserve
Other reserve
Retained earnings
Total equity
Abrar A. Anwar
Chief Executive Officer, Bangladesh
636,564,760
Investments to customers
LIABILITIES AND CAPITAL
10
2014
Taka
(216,958,474)
Proceeds from disposal of fixed assets
Liabilities
Placement from banks and other financial institutions
Deposits and other accounts
Current accounts (Quard)
Mudaraba savings deposits
Mudaraba term deposits
Short term deposits
Other deposits
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, BRPD circular no. 19 dated
27 December 2012 and BRPD circular no. 05 dated 29 May 2013 and BRPD circular no. 16 dated 18
November 2014, a general provision at 0.25% to 5% under different categories of unclassified
investments (standard/SMA investments) has to be maintained regardless of objective evidence of
impairment. Also provision for sub-standard investments, doubtful investments and bad / loss
investments has to be provided at 20%, 50% and 100%, respectively for investments depending on
the duration of overdue. Again as per BRPD circular no. 14 dated 23 September 2012, a general
provision at 1% is required to be maintained for all off-balance sheet exposures. Such provision
policies are not specifically in line with those prescribed by BAS 39.
Increase/decrease in operating assets and liabilities
General investments
Fixed assets including premises
Other liabilities
2015
Taka
Profit paid on deposits
Investments in shares and securities
Government securities
Other investments
BFRS: As per BAS 39, an entity should start the impairment assessment by considering whether
objective evidence of impairment exists for financial assets that are individually significant. For
financial assets that are not individually significant, the assessment can be performed on an individual
or collective (portfolio) basis.
Saadiq Branch
Saadiq Branch
Revaluation gains/losses on Islamic Bond
BFRS: As per requirement of BAS 39, where securities will fall under the category of Held for Trading
(HFT), any change in the fair value of held for trading assets is recognised through profit and loss
account. Securities designated as Held to Maturity (HTM) are measured at amortised cost method and
interest income is recognised through the profit and loss account.
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
Dhaka, 28 April 2016
Investment in shares and securities
BFRS: As per requirements of BAS 39 Financial Instruments: Recognition and Measurement,
investment in shares and securities generally falls either under at Fair Value Through Profit or Loss
(FVTPL) or under Available For Sale (AFS) where any change in the fair value (as measured in
accordance with BFRS 13 Fair Value Measurement) at the year-end is taken to profit and loss account
or revaluation reserve, respectively.
Rahman Rahman Huq
Chartered Accountants
Dhaka, 28 April 2016
Dhaka, 28 April 2016
Notes to the Financial Statements
Profit and Loss Account
The financial statements of the Bank have been prepared on the historical cost basis except for the following:
Statement of Changes in Equity
for the year ended 31 December 2015
Particulars
Capital
Taka
Other reserve
Taka
Retained
earnings
Taka
Total
Taka
-
-
309,116,897
309,116,897
-
-
(309,116,897)
(309,116,897)
Balance as at 31 December 2014
-
-
Balance as at 01 January 2015
Net profit for the year 2015
Profit transferred to Dhaka
Onshore Banking Unit
-
-
364,359,752
364,359,752
-
-
(364,359,752)
(364,359,752)
Balance as at 31 December 2015
-
-
-
Government Islamic Bonds designated as HFT and subsequently measured at fair value using marking
to market concept with gains credited to revaluation reserve as per DOS circular 05 dated 26 May 2008
and DOS circular 05 dated 28 January 2009; and
-
Government Islamic Bonds designated as HTM and subsequently measured using amortisation
concept as DOS circular 05 dated 26 May 2008 and DOS circular 05 dated 28 January 2009.
3.4 Functional and reporting currency
Balance as at 01 January 2014
Net profit for the year 2014
Profit transferred to Dhaka
Onshore Banking Unit
-
-
-
-
The financial statements of the Bank are presented in Bangladeshi Taka (BDT) which is the Bank’s
functional and reporting currency.
3.5 Use of estimates and judgements
The preparation of financial statements requires management to make judgements, 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 to accounting estimates
are recognised in the periods in which the estimates are revised and in any future periods affected.
In particular, information about significant areas of estimation, uncertainty and critical judgements in
applying accounting policies that have the most significant effect on the amounts recognised in the
financial statements are described below:
Notes to the Financial Statements
Notes to the Financial Statements
i)
Provision on investments
The Bank assesses its investments for objective evidence of impairment on a regular basis and
particularly at year end. While the primary criteria set out in BRPD circular no. 14 dated 23
September 2012, for determining whether an investment is impaired is objective, based on
borrower's ability to make timely repayments, investment may also be classified based on
qualitative judgement. This involves making assessments regarding the economic environment in
which borrowers operate in addition to making judgements about a borrower's financial condition
and net realisable value of any underlying collateral.
ii) Taxation
Depreciation on additions to fixed assets is charged from the month in which such assets are
capitalised, and adjustments to accumulated depreciation for disposals / write offs are made up to the
month in which the relevant assets are disposed/written off.
Repayable on demand
Financial assets and financial liabilities are offset and the net amount reported in the balance sheet
when there is a legally enforceable right to offset the recognised amounts and there is an intention to
settle on a net basis, or realise the asset and settle the liability simultaneously.
The cash flow statement has been prepared in accordance with the BAS 7 Statements of Cash Flow
considering the requirements specified in the BRPD circular no. 15 dated 9 November 2009.
Not more than three months
More than 3 months but not more than 1 year
More than 1 year but not more than 5 years
Income tax expense comprises current tax. Current tax is the expected tax payable on the taxable
income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any
adjustment to tax payable in respect of prior years. Currently the tax rate applicable for banks is 42.5%.
For purposes of taxation, the Bank is not assessed separately as it is considered to be an integral part
of the onshore banking operations of Standard Chartered Bank, Bangladesh. Tax liability is assessed on
Standard Chartered Bank as a whole; likewise tax payments are made by the onshore banking unit as
a whole.
Significant accounting policies
Dhaka division
4.2 Revenue recognition
-
income earned from services provided is recognised as revenue as the services are provided
-
-
-
financing (SMEF)
2015
0.25%
2.00%
2.00%
5.00%
5.00%
Unclassified investments under consumer financing (CF) other than
housing finance (HF) and investments for professionals (IP)
376,791,485
4,681,620,387
Sub Total (i+ii+iii+iv+v+vi+vii)
5,851,467,007
5,798,275,308
Grand Total (a+b+c+d)
5,851,467,007
5,798,275,308
1.00%
1.00%
2015
2014
Substandard investments
20%
20%
Doubtful investment
50%
50%
100%
100%
Bad / loss investments
7.6 Status-wise classification of investments
a) Unclassified:
2015
Taka
Sub Total (a)
Substandard
2014
Taka
1,221,235
1,651,044
1,405,150
865,245
Sub Total (a)
2,626,385
2,516,289
The above rates are the minimum prescribed rates. BRPD circular no.14 dated 23 September 2012 also
provides scope for further provisioning based on qualitative judgements. If the specific provisions
assessed under the qualitative methodology are higher than the specific provisions assessed under the
formulaic approach above, the higher of the two is recognised.
-
-
-
-
-
-
-
-
-
as directors, partners or managing agents or in case
-
-
i)
Investment due from other banks
-
-
j)
Classified investment on which profit has not
336,694,750
204,851,025
since inception to 31 December
22,422,014
17,568,906
Amount written off during the year
50,159,612
4,853,108
Total amount of investments written off
72,581,626
22,422,014
12,191,424
5,286,500
-
-
2,795,370
2,795,370
430,000,000
personal security of one or more persons in addition
Grand Total (a+b)
1,022,626,385
432,516,289
to the personal security of debtors;
c) Investments considered good and secured by
d) Investments considered bad or doubtful not provided for;
e) Investments due by directors or employees of
the Bank or any of them either severally or jointly
with any other persons;
f)
Investments due by director or employees of the Bank
are interested as directors, partners or managing
agents or in case of private companies as members;
g) Total amount of investments, including temporary
directors or managers or officers of the Bank or any
403,112,660
379,016,040
1,020,000,000
430,000,000
616,887,340
50,983,960
of them either separately or jointly with any other person;
h) Total amount of investments, including temporary
investments granted during the year to the companies or
firms in which the directors of the Bank are interested
436,705,390
410,600,710
1,020,000,000
430,000,000
583,294,610
19,399,290
been charged
Required reserve
369,519,940
347,431,370
Actual reserve held (Note 5.3.1)
585,920,999
381,915,579
Surplus
216,401,059
34,484,209
2,626,385
2,516,289
5.3.1
k) Particulars of cumulative written off investments
i)
ii)
Actual reserve held
Cash in hand
Balance with Bangladesh Bank as per statement
-
-
583,294,614
19,399,290
-
360,000,000
585,920,999
381,915,579
Government Islamic Bonds
Cumulative amount of investment written off
iii) Amount recovered against such written
off investment up to this year
iv) The amount of written off investment for which
law suit has been filed
Investments in shares and securities
Particulars
Holding
number
Face value
as at
31 Dec 2015
Taka
-
-
6.1 Maturity - wise classification
Purchase
value
Taka
Market value
as at
31 Dec 2015
Taka
-
-
8
Fixed assets including premises
Premises fixed equipment
Computer and office equipment
Remarks
Furniture and fittings
-
2015
Taka
2014
Taka
-
-
Less : Accumulated depreciation
76,350
76,350
1,967,672
1,967,672
4,839,392
4,839,392
4,509,917
4,205,787
329,475
633,605
28,825,561
46,578,569
Refer to Annexure - A for detailed analysis.
Residual maturity of
Other assets
-
-
More than 1 month but not more than 3 months
-
200,000,000
Profit receivable on investment
More than 3 months but not more than 1 year
-
160,000,000
Sundry debtors
More than 1 year but not more than 5 years
-
-
Unamortised Fees / Costs
-
-
Intra branch balances in Bangladesh
-
360,000,000
More than 5 years
7
9
Not more than one month
Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility
of an outflow of resources embodying economic benefits is reliably estimated.
Accrued commission receivable
-
-
170,790
1,829,144
1,285,146,922
1,028,202,998
14,981,743
22,353,037
1,329,125,016
1,098,963,748
Investments
10
7.1 Mode-wise investments
a)
Subsequent costs
The cost of replacing part of an item of fixed assets is recognised in the carrying amount of the item if
it is probable that the future economic benefits embodied within the part will flow to the Bank and its
cost can be measured reliably. The cost of day-to-day servicing of fixed assets is expensed when
incurred.
Mudaraba savings deposits
Bai-murabaha (Saadiq Finance against Trust Receipt etc.)
951,844,050
1,024,635,356
Diminishing musharaka (Saadiq Auto Finance)
359,728,227
381,070,648
3,409,484,534
3,307,470,583
630,410,196
700,098,721
Shirkatul melk (Saadiq Housing Finance)
Ujrah (Saadiq Islamic Credit Card)
Musharaka
b) Outside Bangladesh
Total (a+b)
500,000,000
385,000,000
5,851,467,007
5,798,275,308
-
-
5,851,467,007
5,798,275,308
7.2 Geographical location-wise classification of investments
a)
In urban areas
b) Outside Bangladesh
Total (a+b)
Mudaraba term deposits
Short term deposits
Other deposits
620,977,265
589,409,984
5,333,407,272
4,950,507,049
873,431,149
983,490,711
21,363,873
3,965,069
3,305,566
405,803
6,852,485,125
6,527,778,616
5,959,833,241
5,547,487,864
10.1 Maturity analysis of deposits and other accounts
Payable on demand
Residual maturity of
Not more than one month
In Bangladesh
In rural areas
Deposits and other accounts
Current accounts (Quard)
In Bangladesh
Depreciation
20%
-
1,020,000,000
5.5% (2014: 5.5%) of Average demand and time liabilities
A provision is recognised if, as a result of a past event, the Bank has a present legal or constructive
obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be
required to settle the obligation.
5 years
1,230,852,097
5.3 Statutory Liquidity Ratio (SLR)
4.6 Provisions for liabilities and charges
Furniture and fittings
999,367,087
the Bank holds debtor's personal security;
Sub Total (b)
Surplus
Profit paid for all deposits is recognised in the profit and loss account using the effective interest
method.
20%
3,245,917,264
-
Actual reserve held with Bangladesh Bank
Profit paid on deposits
5 years
3,197,085,709
which the Bank is fully secured;
430,000,000
Repayable on demand
Computer and office equipments
204,851,025
5,798,275,308
-
Government Islamic bond
7% - 33%
336,694,750
5,851,467,007
1,020,000,000
Required reserve
4.5 Deposits by customers and banks
3 to 15 years
150,283,919
b) Investments considered good in respect of which
Bi-weekly 6.5% (2014: 6.5%) of average demand and time liabilities:
BRPD circular no.14 dated 25 June 2001 requires a provision of 100% on other assets which are
outstanding for one year and above. The Bank maintains provisions in line with this circular unless it
assesses there is no doubt of recovery on items of other assets in which case no provision is kept.
Rate of depreciation
151,031,926
Balance with agent banks of Bangladesh Bank
4.4 Provisions for other assets
Useful life
9,585,169
Bad/loss
Balance with Bangladesh Bank (local currency)
Surplus
6
Depreciation on premises other than freehold land, and other fixed assets, is recognised in profit or loss
on a straight line basis over the expected useful life of the assets based on cost. The estimated useful
life and rate of depreciation for the current and comparative period is as follows:
44,981,937
investments, made at any time during the year to
Investments are normally written off when there is no realistic prospect of recovery of these amounts
and in accordance with BRPD circular no. 02 dated 13 January 2003 and BRPD circular no. 13 dated
07 November 2013.
Items of fixed assets, other than land, are measured at cost less accumulated depreciation and
impairment losses, as per BAS 16: Property, Plant and Equipment. Cost includes expenditures that are
directly attributable to the acquisition of the asset. Land is carried at cost.
169,872,165
a) Investments considered good in respect of
The CRR on the Bank's time and demand liabilities at the rate of 6.5% (bi-weekly) and 6% (daily) has
been calculated and maintained with Bangladesh Bank in current account and 5.5% SLR on the same
liabilities has also been maintained in the form of cash in hand, balances with Bangladesh Bank and
Government Islamic Bonds. Both reserves maintained by the Bank as at 31 December, are shown
below:
4.3.2 Investments write-off
4.7 Fixed assets including premises, furniture and fixtures
5,593,424,283
7.7 Particulars of investments
Balance with Bangladesh Bank and its agent banks (including foreign currencies)
Excess reserve
Deposits are the Bank’s principal source of debt funding. Deposits are initially measured at fair value
and subsequently measured at amortised cost.
59,164,900
5,514,772,257
15,790,659
Grand Total (a+b)
Foreign currencies
5,534,259,383
102,633,885
Doubtful
Sub Total (b)
Cash in hand (including foreign currencies)
Local currency
5,412,138,372
b) Classified:
Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) are calculated and maintained in
accordance with section 33 of the Bank Company Act, 1991 and MPD circular no. 1 dated 23 June
2014.
In accordance with BRPD circular no. 05 dated 29 May 2013 the rate of provision on the outstanding
amount of investments kept in the 'Special Mention Account' will be the same as the rates stated
above i.e. 0.25% against all unclassified investments of Small and Medium Enterprise (SME), 5% on
the unclassified amount for Consumer Financing, 2% on the unclassified amount for Housing Finance
and 1% against all other unclassified investments.
Specific provision on:
*This includes investments disbursed to individuals and small and medium enterprise customers.
Special mention account
Cash
Actual reserve held with Bangladesh Bank
1.00%
30,472,714
5,282,056,697
Required reserve
1.00%
-
9,477,630
vii) Other industry *
2.00%
Off-balance sheet exposures
-
(a) BFRS 9 Financial lnstruments
Daily 6% (2014: 6%) of average demand and time liabilities:
All unclassified investments except under SMEF, HF, IP, CF, BH, MB and SD
-
iii) Agro based industry
5.2 Cash Reserve Ratio (CRR)
2.00%
59,932,680
Industry-wise classification of investments category of industry
ii) Textiles
5.1 Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR)
Unclassified investments to brokerage houses (BH), merchant
banks (MB), stock dealers (SD)
-
322,145,190
a)
Unclassified investments under housing finance (HF) and on
investments for professionals (IP)
-
i) Garments
BFRS 15 establishes a comprehensive framework for determining whether, how much and when
revenue is recognised. It replaces existing recognition guidance, including BAS 18 Revenue, BAS
11 Construction Contracts and BFRI 13 Customer Loyalty Programmes. BFRS 15 is effective for
annual reporting periods beginning on or after 1 January 2018, with early adoption permitted. The
Bank is yet to assess the potential impact of BFRS 15 on its financial statements.
2014
0.25%
d)
Investment to customers group (15% of equity and above)
Sub Total (a+b+c)
-
b)
Unclassified investments under small and medium enterprise
5,798,275,308
(vi) Other Business Institutions
Investments are initially measured at fair value and subsequently measured at amortised cost. These
are stated gross with accumulated specific and general provisions for investments being shown under
other liabilities.
General provision on:
5,798,275,308
5,851,467,007
387,245,532
Exchange income includes all gains and losses from foreign currency transactions.
At each balance sheet date and periodically throughout the year, the Bank reviews investments to
assess whether objective evidence that impairment of an investment or portfolio of investments has
arisen supporting a change in the classification of investments, which may result in a change in the
provision required in accordance with BRPD circular no.14 dated 23 September 2012, BRPD circular
no. 19 dated 27 December 2012 and BRPD circular no. 05 dated 29 May 2013 and BRPD circular no.
16 dated 18 November 2014. The guidance in the circulars follows a formulaic approach whereby
specified rates are applied to the various categories of investment as defined in the circular. The
provisioning rates are as follows:
5,851,467,007
-
Standard
4.3.1 Provisions on investments
135,102,590
5,798,275,308
a) Investment to Directors
(b) BFRS 15 Revenue from Contracts with Customers
Investments are non-derivative financial assets with fixed or determinable payments that are not
quoted in an active market and that the Bank does not intend to sell immediately or in the near term.
115,696,379
5,851,467,007
-
BFRS 9 published in July 2014, replaces the existing guidance in BAS 39 Financial lnstruments:
Recognition and Measurement. BFRS 9 includes revised guidance on the classification and
measurement of the financial instruments, a new expected credit loss model for calculating
impairment of financial assets, and the new general hedge accounting requirements. It also carries
forward the guidance on recognition and derecognition of financial instruments from BAS 39.
BFRS 9 is effective for annual reporting periods beginning on or after 1 January 2018, with early
adoption permitted. The Bank is yet to assess the potential impact of BFRS 9 on its financial
statements.
5
2,782,830,428
500,000,000
Exchange income
4.3 Investments to customers
1,187,621,937
2,933,085,293
(v) Milk Processing Industries
Commission and fee income
income earned on the execution of a significant act is recognised as revenue when the act is
completed
1,084,760,192
935,616,554
(iv) Pharmaceutical Industries
Profit on investments is recognised on an accrual basis (as an approximation of realisation basis) over
the lifetime of the investments so as to reflect a constant rate of return on their carrying amounts.
Overdue / late payment charge on investment is transferred to charity suspense account instead of
income account.
-
1,209,090,367
A number of new standards and amendments to standards are effective for annual periods beginning
after 1 January 2018 and earlier application is permitted. However, the Bank has not early applied the
following new standards in preparing these financial statements:
Profit on investment
The Bank earns commission and fee income from a diverse range of services provided to its
customers. Commission and fee income is accounted for as follows:
607,960,161
b) Investment to Chief Executive and other senior executives
c)
The Bank has consistently applied the accounting policies as set out in Note 4 to all periods presented
in these financial statements. The various amendments to standards, including any consequential
amendments to other standards, with the date of initial application of 1 January 2015 have been
considered. However, these amendments have no material impact on the financial statements of the
Bank.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated
into the functional currency at the spot exchange rate at that date. Non-monetary assets and liabilities
denominated in foreign currencies that are measured at fair value are retranslated into the functional
currency at the spot exchange rate at the date that the fair value was determined. Non-monetary
assets and liabilities that are measured in terms of historical cost in a foreign currency are translated
using the exchange rate at the date of the transaction. Foreign currency differences arising on
translation are recognised in the profit and loss account.
657,978,414
7.5 Group-wise classification of investments
4.11 New accounting standards not yet adopted
Transactions in foreign currencies are translated into the respective functional currency of the operation
at the spot exchange rate at the date of the transaction.
2014
Taka
7.4 Division-wise classification of investments
4.10 Taxation
The liquidity statement of assets and liabilities as on the reporting date has been prepared on the basis
of residual maturity term which has been given in the statement.
4.1 Foreign currencies
More than 5 years
For the purpose of the cash flow statement, cash and cash equivalents include notes and coins on
hand, highly liquid investments, etc. that are readily convertible to known amounts of cash and which
are subject to an insignificant risk of change in value.
3.7 Liquidity statement
2015
Taka
Residual maturity of
4.9 Cash and cash equivalents
3.6 Cash flow statement
Fixed equipments
7.3 Maturity grouping of investments
4.8 Off setting financial assets and financial liabilities
The estimation of current tax provision involves making judgements regarding admissibility of
certain expenses as well as estimating the amount of other expenses for tax purposes.
4
Notes to the Financial Statements
86,098,346
108,268,510
More than 1 month but not more than 6 months
402,969,102
475,059,362
More than 6 months but not more than 1 year
400,584,436
396,962,880
3,000,000
-
-
-
5,851,467,007
5,798,275,308
More than 1 year but not more than 5 years
5,851,467,007
5,798,275,308
More than 5 years but less than 10 years
-
-
-
-
Unclaimed deposits for 10 years or more
-
-
5,851,467,007
5,798,275,308
6,852,485,125
6,527,778,616
Notes to the Financial Statements
11
Notes to the Financial Statements
Provision for investments including
2015
Taka
2014
Taka
bad & doubtful investments (Note- 11.1)
276,055,865
298,934,486
8,462,654
6,942,507
-
-
Other liabilities
Profit/rent suspense account (Note - 11.2)
Income tax liability (Note - 11.3)
Profit payable on deposit
22
19,773,821
28,250,467
Excise duty, VAT, tax payable
2,971,405
5,053,403
Suspense account
1,190,796
1,341,640
30,666,821
37,474,752
1,007,023,558
780,011,841
3,561,930
4,598,897
Charity payable
Internal investment/deposit
Accrued bonus points
Others
1,355,908
2,341
1,351,062,758
1,162,610,334
2,881,302
1,361,826
124,218,249
13,724,279
Doubtful
Bad / loss
2,283,618
135,180,051
144,835,223
151,115,096
153,546,746
268,995,768
277,764,995
145,387,739
118,718,448
Provision made during the year
Provision on off-balance sheet exposures
(4,699,058)
10,119,812
3,693,704
Net charge to profit & loss account
16,549,479
(1,005,354)
26,669,291
Sub Total (b)
144,382,385
145,387,739
Add: Provision made during the year
Less: Release / Recoveries during the year
Net charge to profit & loss account
Less : Written-Off during the year
153,546,747
129,299,712
61,419,928
50,497,285
(33,548,291)
(21,691,658)
27,871,637
28,805,627
(49,744,904)
(4,558,592)
Add : Transfer from other provisions Translation increase (decrease)
11.1.1
=
78.5000
77.9500
GBP 1
=
116.4234
121.0680
Other than the above, the branch did not have any material transactions with other SCB group entities
and there were no balances outstanding at the year end with these entities.
EUR 1
=
85.7495
94.7853
24.3 Figures appearing in these financial statements have been rounded off to the nearest Taka.
24.4 Previous year's figures have been rearranged, where necessary, to conform with the current year's
presentation.
As with the conventional banking branches of the Bank, employees of the Islamic branch are entitled to
receive benefits from two post-employment benefit plans: a provident fund which is in the nature of a
defined contribution plan and a gratuity fund which is in the nature of a defined benefit plan. These
funds are maintained for all eligible employees of the Bank as a whole, with contributions made on a
pan-Bank basis and managed through inter branch transaction.
23
Events after the balance sheet date
Abrar A. Anwar
Chief Executive Officer, Bangladesh
Imtiaz Ibne Sattar
Chief Financial Officer, Bangladesh
Dhaka, 28 April 2016
There were no material adjusting events after the balance sheet date.
Schedule of Fixed Assets
c) Specific provision against classified investments
Opening balance
2014
Taka
22.4 Transactions with post employment benefit plans
b) General provision against unclassified investments
Opening balance
2015
Taka
USD 1
During 2015 there were no transactions between the branch and key management personnel of SCB
Plc (2014 : BDT Nil). Neither were there any transactions between the branch and key management
personnel of the Bank. No portion of compensation paid to the Bank's key management personnel
(CMT members) has been attributed to the branch for purposes of preparing these financial statements
as per the Bank's policy.
6,427,905
2,210,766
The assets and liabilities as at 31 December in foreign currencies have been converted to Taka at the
following rates:
The disclosure of the year end balance is considered to be the most meaningful information to
represent transactions during the year.
22.3 Transactions with key management personnel
Classified:
Substandard
24.2 Exchange rates
The Bank provides and receives certain banking and financial services to/from entities within the SCB
Bangladesh Onshore Banking Unit. As at the year end, the balances with these entities are disclosed
as intra-branch transit account under Notes - 9 and 11.
122,856,423
117,880,672
SCB Bangladesh does not have any "Audit Committee" at a country level as it is a branch, but there is
a Country Operational Risk Forum (CORF) where all risk issues are discussed, action points set to
mitigate risks identified and documented. The CORF covers SCB Bangladesh's Islamic banking
operations in addition to its conventional banking operations. SCB Bangladesh has received a
dispensation from Bangladesh Bank on 19 December 2006 with regards to the requirement of audit
committee.
22.2 Transactions with group entities
Unclassified:
Special mention account
General
24.1 Audit committee
The related parties of the Bank includes SCB Bangladesh Branch Onshore Banking Unit and Offshore
Banking Unit (OBU), the ultimate parent company Standard Chartered Bank (SC) Plc, other SCB group
entities, key management personnel of SC Plc and SCB Bangladesh as well as their close family
members. Since the branch is considered an integral part of the Bank for management purposes, key
management personnel of the branch for the purposes of BAS 24 are considered to be Country
Management Team (CMT) members of the Bank and close members of their families and companies
they control, or significantly influence, or for which significant voting power is held, as ultimately it is
CMT members of the Bank who have the authority and responsibility for planning, directing and
controlling the branch activities.
a) Current year provision for investments
114,999,370
24
Related party transaction
22.1 Related parties
11.1 Provision for investments and off balance sheet exposures
Standard
Notes to the Financial Statements
-
-
Sub Total (c)
131,673,480
153,546,747
Grand Total (b+c)
276,055,865
298,934,486
Annexure - A
Standard Chartered Bank
Saadiq Branch
Schedule of Fixed Assets
as at 31 December 2015
Amount in Taka
Cost
Depreciation
Adequacy of provision vis a vis provision required to be maintained
General provision
Base for provision
2015 only
Taka
On off-balance sheet exposures @ 1%2,
2015
Taka
Particulars
2014
Taka
486,319,440
24,863,194
21,169,490
5,412,138,371
117,885,443
122,856,423
102,633,885
1,633,746
1,361,826
8,001,091,696
144,382,384
145,387,738
On standard loans (excluding SMA)
at various rates
On special mention accounts (SMA) @ various rates
Specific provision
On sub-standard loans and advances
46,136,874
9,227,375
6,209,411
3,104,705
1,436,090
114,354,866
114,354,866
128,911,190
166,701,152
126,686,947
134,272,941
271,069,331
279,660,679
On doubtful loans and advances
On bad / loss loans and advances
Total provision required to be maintained
Total provision maintained
Excess / (deficit) provision at 31 December
3,925,660
276,055,865
298,934,486
4,986,534
19,273,807
6,942,506
6,249,595
Balance as at
1 January 2015
Additions
during
the year
Disposals/
adjustments
during the year
Balance as at
1 January
2015
Balance as at 31
December 2015
On
disposals/
adjustments
Charge for
the year
Balance as at
31 December
2015
Net book value
as at
31 December
2015
Own assets
Freehold premises
Fixed equipments
Computer and office equipments
2,795,370
-
-
-
-
-
-
2,795,370
2,795,370
-
-
-
-
-
-
-
2,795,370
-
76,350
-
-
76,350
76,350
-
76,350
Furniture and fittings
1,967,673
-
-
1,967,673
1,334,067
304,131
-
1,638,198
329,475
Sub-total
4,839,393
-
-
4,839,393
4,205,787
304,131
-
4,509,918
329,475
Leased assets
Capitalised leased equipments
-
-
-
-
-
-
-
-
-
Sub-total
-
-
-
-
-
-
-
-
-
-
-
Total 2015
4,839,393
4,839,393
4,205,787
304,131
-
4,509,918
329,475
11.2 Profit/rent suspense account
Balance as at 1 January
Amount transferred to suspense account during the year
Amount recovered from suspense account during the year
Amount written off during the year
Amount waived during the year
Balance as at 31 December
17,549,888
8,721,577
(15,615,033)
(7,734,149)
(414,707)
(294,516)
-
-
8,462,654
6,942,507
-
-
Schedule of Fixed Assets
as at 31 December 2014
Amount in Taka
Cost
11.3 Income tax liability
Opening balance
Provision made during the year
289,167,068
269,480,907
(289,167,068)
(269,480,907)
-
-
Bai-murabaha (Saadiq Finance against Trust Receipt etc.)
80,364,479
140,984,702
Diminishing musharaka (Saadiq Auto Finance)
56,703,758
72,526,169
441,557,360
441,979,079
51,684,375
3,352,709
630,309,972
658,842,659
Amount paid during the year
12
Musharaka
Profit paid on deposits
Profit paid on Mudaraba savings deposits
Profit paid on Mudaraba term deposits
14
Commission
Electricity and lighting
Telephone
Courier and air freight
Advertisement and publicity
Depreciation (Annexure A)
Balance as at
31 December
2014
Net book value
as at
31 December
2014
46,823,892
78,570,297
208,481,828
271,309,366
(9,283,012)
10,609,036
(9,283,012)
10,609,036
280,915,291
252,707,921
(1,382,408)
(96,743)
279,532,883
252,611,178
4,302,003
4,302,003
Own assets
Freehold premises
Fixed equipments
Computer and office equipments
2,795,370
-
-
-
-
-
-
2,795,370
2,795,370
-
-
-
-
-
-
-
2,795,370
-
76,350
-
-
76,350
76,350
-
76,350
Furniture and fittings
1,967,673
-
-
1,967,673
1,029,936
304,131
-
1,334,067
633,606
Sub-total
4,839,393
-
-
4,839,393
3,901,656
304,131
-
4,205,788
633,605
Leased assets
Capitalised leased equipments
-
-
-
-
-
-
-
-
-
Sub-total
-
-
-
-
-
-
-
-
-
-
-
Total 2014
4,839,393
4,839,393
3,901,656
304,131
-
4,205,788
633,605
Liquidity Statement (Asset and Liability Maturity Analysis)
531,309
375,349
4,833,312
4,677,352
Annexure - B
Standard Chartered Bank
Saadiq Branch
Liquidity Statement
(Asset and Liability Maturity Analysis)
as at 31 December 2015
-
-
158,949
157,193
5,390
63,129
164,339
220,322
105,556
545,676
-
-
105,556
545,676
Particulars
Up to
1 month
1 to 3 months
3 to 12 months
1 to 5 years
More than
5 years
Total
2015
Taka
Taka
Taka
Taka
Taka
Taka
2,923,515
4,035,673
Assets
Cash in hand
-
-
-
-
-
-
-
-
-
Placement with other banks and financial institutions
-
-
-
-
-
-
Investment in Shares and Securities
304,131
3,227,646
4,339,804
-
1,408
Other assets
10,873
4,553
-
3,314
Non-banking assets
Security services
1,293,388
1,623,761
Interest on leases
200,425
90,249
Fixed assets
Other operating expenses
Entertainment
Subscription expenses
Support service costs
9,802
-
Other office expenses
331,186
278,799
1,845,674
2,002,084
2,626,385
2,516,289
1,020,000,000
430,000,000
-
-
1,022,626,385
432,516,289
Cash and cash equivalents
Cash in hand (including foreign currencies)
Balance with Bangladesh Bank and its agent banks
Balance with other banks and financial institutions
Investments
Total assets
1,022,626,385
1,022,626,385
-
Balance with other banks and financial institutions
304,131
Travelling and transportation
21
192,739,069
Repair, maintenance and depreciation
Repair and maintenance
20
On
disposals/
adjustments
Charge for
the year
Stationery, printing and advertisement etc.
Printing and stationery (computer and others)
19
Balance as at
1 January
2014
Balance as at 31
December 2014
Postage, stamps and telecommunication etc.
LAN and IT infrastructure cost
18
Disposals/
adjustments
during the year
Rent, taxes, insurances, electricity etc.
Rent, rates and taxes
17
Additions
during
the year
Commission, exchange and brokerage
Exchange
16
161,657,936
Income/(Loss) from investments in shares and securities
Profit/ (Loss) on Govt. Islamic bond
15
Balance as at
1 January 2014
Investment income
Shirkatul melk (Saadiq House Finance)
13
Particulars
Depreciation
1,487,256,096
1,329,125,016
3,839,007,497
379,812,685
935,616,554
2,933,085,293
115,696,379
-
-
-
-
-
-
-
-
-
-
-
379,812,685
935,616,554
2,933,085,293
329,475
116,025,854
5,851,467,007
329,475
1,329,125,016
8,203,547,883
Liabilities
Placement from other banks and financial institutions
-
Deposits and other accounts
5,959,833,241
Other liabilities (including equity)
1,066,544,239
354,382,339
-
535,269,545
-
3,000,000
-
Total liabilities
7,026,377,480
354,382,339
535,269,545
3,000,000
Net liquidity difference
(3,187,369,983)
25,430,346
400,347,009
2,930,085,293
-
6,852,485,125
284,518,519
1,351,062,758
284,518,519
8,203,547,883
(168,492,665)
0