Dear Esteemed Stakeholders,
Assalamu Alaikum.

I am delighted to welcome you to the 9th Annual General Meeting of our Bank and to present to you the Annual Report and Financial Statements for the Financial year ended 31st December, 2024.

Before I proceed, I want to express my sincere appreciation to all of you for your continued unwavering loyalty and commitment to our Bank. Your continued support has been instrumental to the Bank’s sterling performance since its inception.

The year 2024 was challenging in many respects, with significant global and domestic economic developments that impacted our business in several ways.

However, Shimanto Bank responded well, adapting our strategies to leverage available opportunities while creating value for all our stakeholders. Against this background, I will review the economic and financial environment within which our Bank operated during the fiscal year under review.

Global and Bangladesh Economy
Global growth is expected to remain steady at 2.6% in 2024, edging up to 2.7% in 2025-26, according to the World Bank. This is below the 3.1% average growth seen in the decade prior to COVID-19. The growth is constrained by factors like elevated central bank rates to combat inflation and a reduction in fiscal support due to high debt levels.

Bangladesh’s economic growth is projected to slow to 4.1% in fiscal year 2024-2025, its weakest pace since the pandemic. The World Bank projects that this slowdown is partly due to political turmoil in mid-2024, which dampened economic activity and eroded investor confidence. Investments are expected to remain subdued in the near term due to the political uncertainty. The World Bank previously downgraded its growth forecast for Bangladesh to 4% for FY25, down from 5.7%. The Asian Development Bank (ADB) has also lowered its growth forecast for Bangladesh to 3.9% for the current fiscal year. The ADB also projects inflation rates of 8.4% in 2024 and 7.0% in 2025. Bangladesh is on track to graduate from the group of least-developed countries (LDCs) in 2026, which may present challenges such as losing preferential access to export destinations. Economists cite factors like remittance inflows, export performance, and manufacturing sector growth as key drivers of Bangladesh’s GDP growth in 2025.

Our Purpose
You all are aware that we envisage the financial inclusion in the development and growth of our economy. We all are pursuing the same goal in our upward journey with its excellence. To succeed in the mission, we have to have unstopping commitment and consistence. We believe that by implementing a well-defined policy on financial inclusion through exploring alternative delivery channels, it can serve unbanked population of the country effectively and efficiently. In order to meet the customers’ demands we are in continuous endeavor to develop and design products and services for our existing as well as

potential clients. The Bank always puts emphasis on customer care and has made relentless efforts to ensure best possible services at reasonable cost.

Our Strategy
Our Board has an ongoing focus on ensuring appropriate diversity of skills, experience and strategic thinking capabilities that are required to lead your Bank. The bank has appointed new leadership in various positions/appointments to strengthen the mix of skills, knowledge, and experience relevant to the Bank’s strategic priorities. It is vital to stay focused on what we can regulate and control. Our Board is self-assured that there are many prospects and opportunities ahead for the bank to attain its competitive strength in comparison to other reputed banks. The Board has preserved its oversight of the execution of the Bank’s strategy throughout the year. So, we remain poised that it will deliver sustainable shareholder value and maintain itself as a stronger organization for our clients, colleagues, regulators, and the communities.

Our Governance
Our corporate governance system is designed to ensure transparency and accountability at all levels of doing business. It also ensures that duties and responsibilities are appropriately segregated between the Board and Management to provide sufficient check and balance as well as flexibility for smooth business operations. The Board provides leadership and direction for the management, approves strategic and major policy decisions, and oversees management to attain predetermined objectives of the Bank.

Our Performance
Your Bank performed well in the year 2024, with disciplined execution delivering good outcomes, despite the adverse macroeconomic impacts. Profit after tax is increased by 61% reflecting the recovery of economic conditions and outlook, resulting in lower net interest margin, moderate investment income and moderate provision against the soared loan. The Bank has earned a distributable profit of BDT 257.03 million up by 54.19% from BDT 166.70 million in last year.

The total Deposit raised to BDT 25,338.89 million by the end of 2024. Loans and advances totaled BDT 20,341.28 million from BDT 16,014.79 million in 2021 with an increase of 27.02%.

The Paid-up Capital of the Bank was at BDT 5,000.00 million as on December 31, 2024. Unlike many of our peer competitors in the financial services industry, we were well-capitalized, deposit-funded and liquid. Our capital management framework is intended to ensure the best composition of capital in relation to business growth. Capital Adequacy Ratio as per BASEL-III was 39.78%. Return on Asset (ROA) and Return on Investment (ROI) were at 1.36% and 8.24% respectively. Return on Equity (ROE) was 7.32% that allowed Shimanto Bank to deliver moderate returns for shareholders.

Dividend to the Shareholders
The major business and profitability parameters of the Bank have been improved significantly as compared with previous financial year. I am happy to inform you that, the Board has proposed 5% dividend, resulting in shareholders receiving BDT 250 million in dividends in relation to the financial year which is an indication of Bank’s good financials and increasing profitability.

Looking ahead
The Bank has a positive outlook for the Financial Year-2025. The Government of Bangladesh has come up with many development projects for infrastructure and other investments to increase sustainability of the economy. The banking industry would be benefited due to increase in the demand for bank credit. The Bank has shown its adaptability to change and being able to respond quickly to the evolving macroeconomic conditions. The major business goals and objectives of the Bank are focused on creating

a sustainable and profitable business model with a greater customer friendly approach adopting latest technological innovations.

Going forward, our Bank will continue to serve the society and all our customers, while supporting various Government initiatives for the progress of the Nation and maximizing our productivity and profitability to enhance the satisfaction of our stakeholders.

Acknowledgements
We understand how important our stakeholders are to our journey in this interconnected financial ecosystem. We realize the importance and power of multi-stakeholder collaborations and cooperation even more by the recent pandemic and the impact of war. On this note, I would like to thank all our stakeholders for their continued and invaluable support extended to the bank.

I’m happy to express a special note of appreciation to the Board leadership team for their prudent guidance and sincere efforts underpinning the achievements outlined above.

I would like to appreciate efforts of all regulatory bodies of the Bangladesh Government, especially Bangladesh Bank, Bangladesh Securities and Exchange Commission, Registrar of Joint Stock Companies and Firms, National Board of Revenue and Financial Reporting Council.

I would like to express my heartfelt thanks to all members of Shimanto Bank Team for their professionalism, dedication and energy they showed in pursuing strategic priorities for our success.

I am confident that the Bank will remain committed to achieve its business goals and social commitments and make you all more proud of being associated with the Bank.

Sincerely,

Major General Mohammad Ashrafuzzaman Siddiqui, OSP, BSP, SUP, BGBM, ndc, psc, MPhil
Chairman, Board of Directors
Shimanto Bank PLC.
10 June 2025