Dear Esteemed Stakeholders,
Assalamu Alaikum.

It is a matter of honor and immense pleasure for me to lead your Bank as Chairman of Board of Directors. I am pleased to share with you the progress made by your Bank for the financial year 2022.

Global and Bangladesh Economy
Towards the end of the year 2022, escalated Ukraine war has posed challenges. Bangladesh government has reacted proactively to curb inflation and to reduce the supply disruptions in order to ensure the equilibrium of the economy. Currency markets have turned highly volatile in response to war at Ukraine which resulted in supply disruptions. Bangladesh Bank intervened in the local foreign exchange market by selling a substantial amount of foreign currency to support exchange rate stability and to maintain the external competitiveness of Bangladesh Taka (BDT) during the year-2022.

Going forward, elevated oil and commodity prices, protracted war and sanctions, prolonged supply chain disruptions and global financial market volatility have now become major factors that are driving market sentiments.

We are, however, quite sanguine of facing the challenges posed by the external economy. We have strong foundations for sustained growth in our economy as well as in our Bank. The banking sector can see better business as the private sector investment gradually turns around.

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 2022, with disciplined execution delivering strong outcomes, despite the adverse impacts of the pandemic. Profit after tax is increased by 65% reflecting the recovery of economic conditions and outlook, resulting in increased investment income and lower provision against the soared loan. The Bank has earned a distributable profit of BDT 155.77 million up by 89.78% from BDT 82.08 million in last year.

The total Deposit raised to BDT 16,563.24 million by the end of 2022. Loans and advances totaled BDT 12,531.85 million from BDT 10,047.39 million in 2021 with an increase of 24.73%.

The Paid-up Capital of the Bank was at BDT 4,380.00 million as on December 31, 2022. 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 42.56%. Return on Asset (ROA) and Return on Investment (ROI) were at 1.11% and 6.95% respectively. The year’s performance and capital position have 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 3.42% dividend, resulting in shareholders receiving BDT 150.00 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-2023. 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 my fellow and senior 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.