Sustainability Report 2014

Sustainability Report 2014 Bangladesh is a riverine country having 800 rivers Oxygen (O2) we constituting a waterway around 24,140 kms and inhale and Carbon coastline 710 km along the north and north-east part of the Bay of Bengal. Environmental impacts are mainly di Oxide (CO2) we described through water pollution as it impacts fshing, exhale agriculture, health, trade and transportation, 3 rivers now classifed as biologically dead as zero dissolved Oxygen (O ) that includes river Buriganga fowing Water (H O) we 2 2 beside Capital Dhaka. Other major rivers are also not in drink the basics of good condition.

lives Reasons for such unbridled pollution are manifold including discharging sewer waste of 70,000 cubic Water connects us meters/day, medicinal waste of 16,972 tons/year, and causes economy industrial waste of 1.5 million cubic meters/day from 7,000 industrial units, solid tannery waste of 75 to to grow 200 tons/day in river and canals. For rivers outside industrial areas rising silt level, encroachment, poor water fow (bilateral issue with neighboring country) are the main reasons. All these fatal pollutants are carried through diferent rivers and canals to the sea.

About 3,000 ships including oil tankers come to our ports every year. They along with several thousand mechanized trawlers and boats spill oil and dump waste into sea. The use of antibiotics and other chemicals used in shrimp felds is causing pollution in the water, which may harm other aquatic lives. Plastic bottles and other plastic products are most common forms of litter in the coastal water. Shipbreaking industry is located in Chittagong, which is also a major polluter.

We need huge public awareness to save our rivers, coastal belt and their biodiversity. Keeping this in mind Bank Asia puts its small efort to attract attention of corporate world by way of its Sustainability Report.

Bay of Bengal, Cox’s Bazar BANK ASIA LIMITED BANK 2

Shela river in Sundarban polluted by oil spill from a capsized oil tanker nt te s n BANK ASIA LIMITED BANK vision | mission -- 04 o core value | codes of conduct - 05 3 report parameter ------06 strategic focus for sustainability ------07 triple bottom line------08 C sustainable banking operation key highlights ----09 chairman’s message ------10 president and managing director’s review ------12 awards and recognition ------14 corporate proﬁle ------16 stakeholders engagement ------18 materiality mapping ------21 governance, commitment and stakeholders ------22 ﬁnancial performance ------30 primary brands | products and services ------32 environmental performance ------47 economic performance ------52 sustainable HR development ------60 capital management ------75 building the community ------76 GRI G4 content index ------82 BANK ASIA LIMITED BANK 4 vision mission Bank Asia’s vision is to have To assist in bringing high quality service to our customers a poverty free Bangladesh in and to participate in the growth and expansion of our course of a generation in the national economy. new millennium, refecting the national dream. Our vision To set high standards of integrity and bring total satisfaction is to build a society where to our clients, shareholders and employees. human dignity and human To become the most sought after bank in the country, rights receive the highest rendering technology driven innovative services by our consideration along with dedicated team of professionals. reduction of poverty. Provide customized banking products and services

Core Value

Codes of BANK ASIA LIMITED BANK conduct 5

Employees must be open and and ethical standards and in Employees shall never loyal to the bank and bank’s accordance with established ofer or accept illegal or interest. guidelines and regulations. inappropriate gifts or other Employees must keep Customers shall be met remuneration in order to confdential all bank and with insight, respect, and achieve business or personal other matters that could understanding. Employees advantages. provide other third parties must always try to fulfll the Employee’s engagement unauthorized access to needs of the customer in the in external duties must confdential information. best possible manner, within not afect his/her working Employees must observe the guidelines for corporate relationship with Bank the bank’s security ethics that apply to business. Asia or come into confict requirements concerning Under no circumstances, with Bank Asia’s business access to electronic employees shall or be a part interest. resources and documents. of any activity that prohibits Should an employee All information and open and fair competition become aware of an communication with the of Bank Asia in breach of infringement of Bank Asia’s media, the public and relevant business laws. rules and guidelines, he/ fnancial markets shall she should blow whistle be reliable and correct, raising the issue to the line maintain high professional management or to human resource department.

Traditional clean up of oil spill of Shela river by local people of Sundarbans basis under historical cost convention in accordance with Bangladesh Financial Reporting Standards (BFRS).

Report BA Exchange Company (UK) Ltd. a wholly owned subsidiary is incorporated in UK and primary parameter responsibility is remittance channeling to Bangladesh from UK market. Financial statements of BA Exchange Company Our previous two reports guidelines of Global Reporting (UK) Ltd. are prepared on a were based on G3/G3.1 Initiative (GRI) - ‘In Accordance’ going concern basis under the guidelines. But this year we Option: Core. As there is no historical cost convention and have prepared our report external assurance service in accordance with the Financial based on G4 guidelines with available in our country, our Reporting Standards for smaller an efort to measure, disclose report could not be verifed by entities. and be accountable to internal external assurance. and external stakeholders in The sustainability report will In 2014 Bank launched its terms of governance, economic, be prepared once in a year 2nd overseas 100% subsidiary environmental and social impacts describing activities and company, BA Express USA Inc. at including both positive and achievements throughout the NY, USA & started its operation. negative contribution. year. The fnancial statements of the Company are prepared on the G4-22, G4-23 G4-17 accrual basis of accounting and BANK ASIA LIMITED BANK REPORTING SCOPE BOUNDARY OF THE in accordance with accounting 6 This report intends to touch principles generally accepted in REPORT the USA (US GAAP) upon all material environmental, The report boundary of the economic and social impacts year 2014 covers only banking resulting from Bank Asia’s operation run by corporate ofce, activities in the fnancial FEEDBACK its branches, SME service centers We welcome any feedback on year 2014. This is our third and other direct networks in our sustainability reporting. sustainability report, and there is Bangladesh. Impacts of the For further information and no signifcant changes regarding activities of our subsidiaries, comments, please contact scope, boundary, or measurement NGO networks or our suppliers Sustainability Reporting Team methods and explanation of in other countries are not within of the Bank led by Mr. Imran the efect of any restatement of the scope of this report. Ahmed, FCA, CISA, CSRS, information comparing to the Bank Asia has three subsidiary Chief Financial Ofcer, Mr. Md. previous report. companies, one in Bangladesh Bashir Uddin Ahmed, CSRS, and others in UK and USA, but Assistant Vice President, IN ACCORDANCE no joint venture. As owner the Finance & Accounts Division, Bank controls the activities Mr. Md. Shamim Hasnat, Senior OPTION AND of its subsidiaries. Bank Asia Executive Ofcer, Finance & EXTERNAL Securities Limited (BASL), a Accounts Division and Ms. Nahid ASSURANCE majority owned subsidiary is Tania Khan, Ofcer, Finance & In Sustainability Report 2014, incorporated in Bangladesh and Accounts Division. They may be we have reported in accordance acts as a stock broker and stock reached through dealer in capital market. The with the latest G4 Reporting e-mail: fnancial statements of the BASL sustainability.ba@bankasia-bd. are prepared on a going concern com Bank Asia Limited Corporate Ofce | Rangs Tower | 68, Purana Paltan, Dhaka-1000 | Bangladesh Tel: +88 - 02- 7110062 | Fax: +88 - 02- 9577841 | Web: www.bankasia-bd.com small enterprise fnancing for productive new of farm Strategic employment of ‘missing middle’, Solar home system projects with NGO-MFI FOCUS for partners, foreign remittance of poor migrant workers channeling through partner sustainability MFIs, domestic remittance distribution through bank led as well as mobile operation led GOING GREEN IN mobile banking. THE FUTURE OF GIVING BACK BANKING Bank Asia believes in giving Bank Asia frmly promotes back to the community green banking to reach its long and it will continue to term strategic objective to be a promote education, fulfll its green, triple bottom line bank commitment to community where every decision will be health, disaster management, taken with both fnancial and clean environment, sports, art environmental considerations and culture. in mind. The Bank’s green banking initiatives includes Online & paperless banking, CUSTOMER BANK ASIA LIMITED BANK reduction of green house gas SATISFACTION 7 emission, mapping bank’s Bank Asia is sincere to create carbon foot print, efcient higher customer satisfaction energy use, environment and loyalty by its brand friendly projects, plant nursery enhancement programs & and horticulture projects etc. creating brand ambassadors, personalized banking, Online PROMOTING product innovation, measure and reduce customer eforts for FINANCIAL greater value proposition. INCLUSION One of the strategic priorities of Bank Asia is to promote fnancial inclusion for combating poverty which the Bank frmly believes to achieve by its deposit services, agricultural credit program,

Bay of Bengal seen from Saint Martin’s Island Triple bottom line

PEOPLE PLANET Bank Asia always plays a very As one of the strategic focuses of Bank Asia, ‘going active role in contributing to the green’ movement includes efcient energy consumption, society through its CSR program, paperless ofce, fnancing renewable energy etc. Bank which are thoroughly illustrated Asia’s achievements in green initiatives are detailed out in in CSR section. In the context other parts of the report. As greening of mind, Bank Asia of value creation model for its provided 4 trainings on green banking under foundation employees, the bank has made trainings course where 134 stafs participated. During the footprints by achieving: year 49 programs were arranged by diferent departments

BANK ASIA LIMITED BANK regarding green banking. Bank Asia also participated 8 Operating proft and Net proft in “Green Finance Conference-2014” organized by per employee was Bangladesh Bank Tk. 3.26 million and Tk.1.25 million respectively during PROFIT 2014. During 2014, Bank Asia generated economic proft of Tk. 309 million in the form of economic value addition. 52,584 man- hours training have been provided to our employee in the year 2014.

Bank Asia works with a wide range of suppliers, vendors, agents and others. Bank Asia works with them to create value through collaboration by applying its own policy and practice for selecting these suppliers and others.

Naf river, Teknaf Sustainable banking operations key highlights

52,584 Man hours of training 510 for development of our Students received human capital support for education under Bank Asia’s higher studies scholarship amounting to Tk. 12.72 million 142,701 68% Households of rural ASIA LIMITED BANK and semi-urban areas 9 Cash transactions received remittance of done through ATM Tk. 3,480.34 million through our MFIs 17 network business Districts covered through our 49 agent outlets for expanding Agent Banking in most geographically dispersed poor segment 85,317 245,700 Farmers and rural people beneftted E-statements delivered fnancially through our to customer agricultural/rural Tk. credit 40,000 Disbursed for home solar system 10,55,579 Unbanked villagers of 21,816 villages came under Bank Asia’s banking service network through EBEK project for poverty alleviation. Chairman’s message BANK ASIA LIMITED BANK 10

Banking industry continued to face diﬃculties in 2014 due to sluggish investment situation and excess liquidity pressure caused by political agitation. However, Bank Asia made a modest growth in core business areas. Deposit grew by 5.53%, loans Bank Asia donated Tk. 103.54 to set up Zigzag chimney, an and advances by 11.34%, import million to various social projects environment friendly brick by 4.09%, export by 13.39% and e.g. relief for food and cyclone manufacturing technology and inward remittance by 21.83%. afected people (global warming Tk. 15 million to set up Efuent efect). The Bank also sponsored Treatment Plant (ETP) for BUILDING THE Tk. 16.12 million for various arts cleaning untreated waste water COMMUNITY and cultural program in 2014. in 2014. Bank Asia is always caring to the under privileged segment of the FINANCIAL HEALTHY WORKING society and incorporates them INCLUSION ENVIRONMENT in the mainstream business. The During 2014 Bank Asia Board and management of Bank spent Tk. 239.84 million continued its thrive to bring Bank Asia strongly believe safe in 2014 in CSR activities, which the unbanked population under and healthy work place is a was almost 80% higher than the banking services net as part of precondition for sound mentality previous year. its committment for poverty of employees to deliver desired The Bank initiated Higher studies alleviation through fnnacial services to valued customers. So scholarship program in 2005 for inclusion. Under EBEK project the bank is very careful about those students who have merit (on house one farm) the Bank ensuring modern, healthy and and dream to serve society, is now providing banking safe workplace for its employees. but not the means to pursue services to more than 1,055,579 All the branches, SME service higher studies. The scholarship benefciaries in 252 upazillas centers and SME/agriculture is given through the Bank’s of 35 districts. Under its Agent branches and every department rural branches on the basis of Banking initiative Bank Asia has of corporate ofce are well Secondary (SSC) and Higher implemented 49 Agent outlets decorated having sufcient Secondary School Certifcate in 17 Districts in 2014. Under breathing spaces. Bank Asia (HSC) exam results. So far, its mobile fnancial services conducted 52,584 man hours 510 students have received the “Hello” the Bank served 1, 87,621 training to 2,943 employees scholarship. Each of the students customers through 12,677 agents in 2014. The Bank is providing ASIA LIMITED BANK gets Tk. 34,000 annually as of 80 distributors in 2014. pick and drop facility to the 11 scholarship. In the year 2014, female employees and majority the bank spent around Tk. 12.72 of the pool vehicles have been Bank Asia provides very low million for this purpose. converted into CNG driven. interest agri/rural credit through Bank Asia provides scholarship our own and NGO networks. and food grants to 19 graduate Till date total 362,161 farmers The Management and the Board nursing students of Bangabandhu have received beneft under of Directors are boosting up Sheikh Mujib Medical University this scheme. During 2014, the their awareness day by day (BSMMU). With a view to Bank disbursed SME loan of although we have to go forward mitigate acute accommodation Tk. 20,514.20 million. a long way. We are vigilant to the problem of all graduate nursing development and implementation students of BSMMU, Bank Asia of the green banking policies completed construction of 40,000 GREEN BANKING and manage the business in a square feet (approx) ‘Nursing Since its inception, Bank sustained way so as to protect the Student Hostel’ in 2014 with a Asia has been committed stakeholders interest at large. I spending of Tk. 95.90 million. towards safe, clean and green want to thank the Sustainability The building can be further environment which is essential Reporting Team for their sincere constructed up to 9th foor. To for our survival. Bank Asia eforts of presenting the banking construct further to the health in principle never fnanced in activities under the framework of sector for a healthy community environmentally hazardous Sustainability Reporting. the bank also completed business. The bank had decided construction of 20,000 square not to fnance any tobacco related feet (approx) Outdoor Patient business, and all ofces of the Department (OPD) building for bank are declared smoking Holy Family Red Cresent Medical free zone. We incorporated A Rouf Chowdhury College & Hospital in 2014 with Environmental Due Diligence Chairman a spending of Tk. 53.46 million. (EDD) checklists to assess its The OPD can also be raised up to borrowers. Bank Asia fnanced 9th foor. Tk. 44.50 million in 8 projects Message from the president and managing director BANK ASIA LIMITED BANK 12

Our commitment to principles of sustainable development has been a critical success factor to establish the Bank as a socially responsible corporate citizen, which inspires us to follow triple bottom line –people, planet and proﬁt in our business operation Bank Asia is publishing the 3rd measurement method is Value development. During the year Sustainability Report that is added statement which depicts the bank has spent Tk. 239.84 another ofcial milestone. Over how much value (wealth) has million for CSR activities against the past years, the Bank has been created by the bank through Tk. 132.97 million in 2013, strengthened its reputation as utilization of its capacity, exhibiting a remarkable growth a socially responsible corporate capital, manpower and other of 80%. The Bank spent Tk. 13.44 citizen. We also realize that resources and how it is allocated million for education purpose, strong sustainability practices among diferent stakeholders Tk. 90.28 million for are keys to maintaining our social i.e. employees, shareholders, infrastructural development in commitment for a broad range government etc. In 2014, bank’s health sector. As Bangladesh of stakeholders, including our net value addition stood at is a natural disaster prone employees and our communities. Tk. 6,493 million having a country, the Bank contributed growth of 21% over previous Tk. 11.14 million for disaster ENVIRONMENTAL year. Bank Asia has contributed management. In addition to signifcantly to the government’s Educational, Health, Disaster and PERFORMANCE efort in revenue collection. As a Environment sectors, Bank Asia Our commitment to responsible corporate entity, the bank pays also donated in Art & Culture and environmental management is tax and VAT on its own income other social projects. also a fundamental sustainability according to prevailing laws of objective of our Bank. Since the country. During the year inception, Bank Asia has been AWARDS & 2014, the bank contributed committed towards safe, clean Tk. 3,487.89 million to national ACCOLADES and green environment. As a Bank Asia has been awarded for exchequer. Bank, we play an intermediary its Sustainability Report 2012 & role between economic 2013 by NCSR (National Centre development and conservation SUSTAINABLE HR for Sustainability Report) in of the environment. Our Green DEVELOPMENT Pejatan, Jakarta, Indonesia for Banking activities are on Our employees are both our key 2nd time. ASIA LIMITED BANK multidimensional areas which stakeholders in our business 13 include both in-house green and our most important assets. In the end I express my sincere activities and external green We provide our employees with thanks and gratitude to all activities towards supporting opportunities for personal stakeholders and sincerely green economy. Bank Asia development and professional acknowledge their active participated in ‘Green Bankers’ advancement through extensive engagement towards Bank Conference 2014’ and ‘Green skills training and other personal Asia’s dream of a poverty free Finance Conference 2014’ development programs. In that Bangladesh that is sustainable organized by Bangladesh Bank. respect, Bank Asia conducted in economic, social and Bank Asia uses technologies for 52,584 man hours of training environmental respects. rendering its banking services involving 2,943 participants in that saves energy and minimizes 2014. The current gender mix environmental hazards. is female 25% and male 75%. Our 86% staf members are aged ECONOMIC below 40 years which denotes Md. Mehmood Husain that Bank Asia is in young, President and Managing Director PERFORMANCE dynamic and capable hands. Bank Asia is following triple bottom line ‘3 pillars of sustainability’ in its business BUILDING THE operation. Shareholders are COMMUNITY always conscious about their As an organization, we work to return on capital invested. As a understand the priorities and Bank, we are deeply concerned challenges of the communities about delivery of value to all of in which we conduct our our shareholders. In 2014, the operations so as to efectively Bank added Tk. 309 million to support appropriate community EVA. Another economic value programs and infrastructure Awards and recognition 2014 Bank Asia garnered second position from the Institute of Chartered Accountants of Bangladesh (ICAB) for Best Presented Annual Reports-2013 among all the private sector banks (including cooperative banks) in Bangladesh. Certifcate of Merit from SAFA (South Asian Federation of Accountants) for Best presented Annual Report Awards and SAARC Anniversary Awards for Corporate Governance Disclosures 2013. Certifcate of Merit from the Institute of Cost and Management Accountants of Bangladesh (ICMAB) for Best Corporate Award-2013. Sustainability Reporting Award 2014(SRA 14) awarded for Most Impressive Report 2013 by NCSR (National Centre for Sustainability Reporting) Jakarta, Indonesia for Sustainability BANK ASIA LIMITED BANK Report 2013 of Bank Asia. 14 Mr. Md. Mehmood Husain, President and Managing Director of Bank Asia receiving ‘Certifcate of Merit’ for Best presented Annual Report Award and SAARC Anniversary Awards for Corporate Governance Disclosures 2013 at Bhubaneswar, India 2013 Certifcate of Merit from the Institute of Chartered Accountants of Bangladesh (ICAB) for Best Presented Annual Reports-2012 in the Private Sector Banks including Cooperative Banks. Certifcate of Merit in the SAARC Anniversary Award for Corporate Governance from the Institute of Chartered Accountants of Bangladesh (ICAB). Achieved commendation for frst time Sustainability Report 2012 in the 9th Sustainability Reporting Awards by National Center for Sustainability Reporting (NCSR) in Pejaten, Jakarta for Sustainability Report 2012 of Bank Asia. Achieved special commendation for Most Progressive Reporter 2012 by National Center for Sustainability Reporting (NCSR) in Pejaten, BANK ASIA LIMITED BANK Jakarta for Sustainability Report 2012 of Bank Mr. Md. Mehmood Husain, Asia. President and Managing 15 Recognized by Bangladesh Bank as one of the top Director of Bank Asia Ltd. receiving the ICAB Award 10 commercial banks for signifcant contribution for Best Presented Annual to green banking in Bangladesh. Reports-2013 Corporate profle

BANK ASIA LIMITED Besides maintaining a steady NUMBER OF was incorporated on September growth Bank Asia always COUNTRIES WHERE 28, 1999 as a private commercial prioritized in the structural bank with the aim of contributing and moral development of the THE ORGANIZATION for the development of the society. From the very beginning OPERATES economy by bringing superior its started its Corporate Social Bank Asia runs its operation quality technology driven Responsibility (CSR) activities only in Bangladesh. However, the banking products and services. for the development of our bank has fully owned subsidiary In 2001 Bank Asia set a country’s unprivileged segments named ‘BA Exchange Company milestone by acquiring the in the areas of education, health, (UK) Limited’ to facilitate Bangladesh operations of the environment, sports, arts & speedy and dependable medium Bank of Nova Scotia of Canada, cultures and the likes. for remitting the hard-earned frst in the banking history of money of expatriates back Bangladesh. At the beginning NATURE OF home. It started its operation in

BANK ASIA LIMITED BANK of the year 2002, the bank OWNERSHIP AND London on May 16, 2011. Bank 16 again acquired the Bangladesh LEGAL FORM Asia obtained license for its 3rd operations of Muslim Commercial Bank Asia Limited was formed subsidiary company, BA Express Bank Limited of Pakistan. as a public limited company USA Inc. from New York State under the Companies Act Department of Financial Services Bank Asia has associated Islamic 1994, and governed by the in December 2013 and started its banking, Of-shore banking, Banking companies Act 1991. operation on June 1, 2014. SME fnancing & many more The Bank Obtained certifcate specialized services with its of incorporation on September SCALE OF THE core banking activities. To excel 28,1999 and banking license REPORTING in this new era of technological on October 06,1999. It went for triumph, Bank Asia has ORGANIZATION public ofering on September 23, As of the end of 2014, our Bank’s successfully introduced mobile 2003 when its share were listed operating proft is Tk. 5,778.83 banking, cutting edge ICT, state with Dhaka Stock Exchange million and total assets of the art network solution, (DSE) and Chittagong Stock Tk. 182,731 million. The Bank’s 24/7 ATM service & many other Exchange (CSE). capital adequacy ratio is 11.32 %. e-products.

Bank Asia maintains an Number of employees 1,814 (1773 of Bank & 41 of subsidiaries) environment of strong corporate Number of branches 91 governance that helps to maintain its excellent brand Total operating income Tk. 9,686 million image; refected by consistent Total debt & equity Tk. 165,867 million & Tk. 16,864 million fnancial performance for Number of ATMs 97 own & 5000+ shared its stakeholders. To attain Number of credit cards 32,880 sustainability we focus more on strategic priorities measured SME centre 6 Number of VISA debit by quantitative and qualitative 264,000 determinants. cards BRANCH NETWORK Commerce in Bangladesh Currently we have 97 branches (AmCham) Bangladesh Foreign and SME service centers across 1 the country spread over diferent Exchange Dealers Association (BAFEDA) zones that includes 87 branches, Bangladesh Association of 7 4 SME agricultural branches Publicly Listed Companies 3 and 6 SME service centers. 53 (BAPLC) Geographically 53 are placed in Money Market Dealers’ capital Dhaka, 27 in Chittagong Association nd the 2 largest commercial hub Metropolitan Chamber of 5 after Dhaka, 7 in Sylhet zone Commerce and Industry 27 one of the leading remittance 1 (MCCI) World’s largest Mangrove forest fow area, 5 in Khulna zone Islamic Banks Consultative ‘Sundarban’ nd Cox’s Bazar the 2 international port city World’s Forum (IBCF) longest

2nd largest Sea ASIA LIMITED BANK and adjacent to world’s largest Central Shariah Board for commercial beach hub mangrove forest, 3 in Rajshahi Islamic Banks of Bangladesh Branches Network 17 the silk city and world’s fnest (CSBIB) mango production area, 1 in Rangpur famous for one of the oldest (1916) and best reputed Conventional college, Charmichael College Banking and 1 in Barisal the main rice Islamic Oﬀshore Banking producing center of Bangladesh. Banking Main All these branches and SME Operation centers are efciently supervised and monitored by 5 cluster mentors who take care of their overall performance indicators BA Remote Exchange Banking on a regular basis. Every year on Company (EBEK) an average 10 new branches are (UK) Ltd. BA Agent Express Banking added to our branch network. USA Inc. Subsidiary Branchless MEMBERSHIP WITH Companies Banking Bank Asia Mobile Securities Banking ASSOCIATIONS Ltd. (Hello) Bangladesh Institute of Bank Management(BIBM) Bangladesh Associations of Banks(BAB) Association of Bankers Bangladesh (ABB) The Institute of Bankers

Bangladesh (IBB) Bank Asia The American Chamber of G4-18, G4-25

Stakeholders engagement

Bank Asia believes in the proper We prioritize stakeholders’ stakeholders engagement in issues based on materiality every aspects of its banking mapping determining the level activities. We identify our of relevance and signifcance on stakeholders conducting through economic, environmental, social impact analyses in respect of and fnancial impacts. Responsibility; Bank Asia has The table on the next page direct legal responsibility to discusses on various aspects of regulators, tax authority etc. stakeholders, their engagement Infuence; decision making process and our response: of the bank is infuenced to reach its intended goals by shareholders and employees etc. BANK ASIA LIMITED BANK Proximity; the local 18 community that infuence Our stakeholders heavily our daily operation Dependency; those who are dependent on our operational performance, e.g. business partners, and those whom we are dependent, e.g. customers Representation; those who Business represent Bank Asia to the Partners outside world, e.g employees, board and those whom we face for various decision making purposes. e.g. business association leaders, local community leaders Subsidiaries Impact analyses from the aspects of governance, economic, environment and social infuences help us recognize and respond to emerging risks and opportunities and meet the expectations of those who shape our operating environment. Continuous engagement with stakeholders is integral to the success of our business. G4-24 G4-26 G4-27 Our Ways of inclusion Their priorities Our response stakeholders • ALCO sits every month to decide • Good return from deposits pricing and rates based on market • Fast services delivery analyses with excellence • All network nodes are run by • Preferential pricing, online core banking system (CBS) • Customer feedback charges and commission • E products like mobile banking, management • Strict Shariah compliance internet banking, tele banking, • Ongoing market Customers in Islamic products and electronic fund transfer, etc. research and services ensures hi-tech banking needs product innovation • Product varieties catering • Separate online CBS for Islamic market demand products • Online banking solutions • Front desks and relationship with secured transactions, managers ensures fast and high privacy and confdentiality quality service delivery following one to one relationship. • Strongly consider environmental • Compensation for adverse and social impact and restrain from direct or indirect impact adverse impact upon society Local for bank’s activities • Target segment is underdeveloped • CSR activities communities • Support to under and under privileged people • Scholarship privileged people • Signifcant contribution to • Support to basic need for education, health, disaster living management and environmental sector Annual general ASIA LIMITED BANK meeting (AGM), • Maintained attractive plough back 19 extraordinary general • Healthy return on ratio meeting (EGM), investments and stable • Timely repayment of debt with Shareholders/ annual & semi annual dividend policy stated return investors report, publishing • Growing earnings • Established superior risk quarterly fnancials • Sound governance and management culture and price sensitive risk management • Transparency and integrity in information (PSI) in fnancial reporting newspapers Decisions are taken At least one board meeting in • Governance principles, based on fnancial and every month, executive committee policies & procedures business delegation of meeting, audit committee meeting. Board & formulation diferent levels. Any Board members meet management management • Strategic focus & value major decisions must on various occasions like annual & creation be placed to board for semiannual business conferences, approval bank’s anniversary celebration • Salary package adjusted in line • Infation adjustment in with market competitiveness and pay package planning Business conferences, infation • Periodical salary review teleconferences, • 52,584 man hours training for to adjust with cost of living video conference etc. human capital in 2014. index Training, workshops • Well set KPIs for performance and • Proper job description as and orientation inherent quality analysis Employees per individual skill set program group • All sorts of safety measures such • Regular training emails, intranet as fre extinguishers, separate • Healthy working circulation stairs are available and smoke free environment and premise workplace safety • Ensure continuous learning and • Performance driven application ground for career build- career progression up G4-24 G4-26 G4-27 Our Ways of inclusion Their priorities Our response stakeholders • Proper compliance with laws & regulations Government & Strict compliance • Timely reporting as per We ensure proper compliance and regulatory with applicable laws, requirement timely reporting to government authorities rules and regulations • Timely payment of right bodies and regulators amount income tax and VAT Goals & Strategic focuses We review local market and • Policies formulation are based on local environment before setting its Subsidiaries • Agreed upon environment analyses & strategic priorities ensuring proper strategic goals regulatory preview representation from subsidiaries • Free from any bias or coercion Procurement Business • Fair trade, fair enlistment, from infuencing quarters management, training partners • Sustainable and stable • Ensure fair play and competition and communication growth of the bank to award work order • Timely payment to vendors

G4-18, G4-20, G4-21

Material aspects and BANK ASIA LIMITED BANK 20 boundaries

Material Boundaries inside the organization Boundaries outside the organization aspect Financial Client base of the organization increases The community including the overall Inclusion with diversity, taping business economy beneftted from reduction of poverty opportunities, increase of revenue through augmenting economic activities in generation. the geographically dispersed areas. Energy Efcient use of scarce resources. Sequestration of carbon emission and the Consumption national GHG inventory will be reduced Human Capital Enhancement of operational level The clients will be beneftted from customer & Talent efciency. Attaining cost savings through friendly efcient services and more loyalty Management reducing time requirement. Customer will be ensured. retention rate will be higher. Agricultural Product diversifcation and attachment As an agricultural country, share croppers Credit to mainstream of the economic activity and marginal farmers will be beneftted by of the country. lower interest rate and their poverty level will be improved. Capital Business expansion and the fundamental Building confdence level to the investors as Adequacy strength of the organization are ensured. well as credit line providers. Building the Discharging our responsibility towards Overall betterment of the nation through Community society to ensure sustainable balanced CSR activities in diferent sectors like health, growth in economic, social and ecological education, sports and culture etc. arena. G4-19 Materiality mapping

Priorities Major Topics/ Sln. L M H Bank Asia Response Indicators 1 2 3 4 5 10,55,579 beneficiaries of 21,816 villages included in banking network under 35 districts of Bank Asia’s EBEK ( one house one farm) program-a government project. 17 districts through 49 agent outlets for expanding 1 Financial inclusion = Agent banking in most geographically dispersed poor segment. Bank Asia’s mobile financial services “Hello” served 1, 87,621 customers through 12,677 agents of 80 distributors in 2014. We are saving around 40% electricity (used for 2 Energy consumption = lighting purpose) by using the day light in our

corporate office and a number of major branches. ASIA LIMITED BANK 86% of staff members are aged below 40 years and 21 Human capital and talent 52,584 man hours in the year 2014 which signifies 3 = management that Bank Asia is in young, dynamic and capable hands. During the year 2014, the Bank disbursed 4 Agricultural credit = Agricultural credit amounting to Tk. 2,417 million to 85, 317 beneficiaries. 11.32% capital of risk weighted assets maintained against minimum capital requirement of 10%. Bank Asia has successfully closed its 2nd Bond 5 Capital adequacy = transaction of Tk. 3,000 million, termed as 7 Year Floating Rate (11.50% to 14.00%) Non-Convertible Subordinated Bond. During the year, Bank Asia spent an amount of 6 Building the community = Tk. 239.84 million for the overall betterment of the nation.

1 3

5 6

4 uence on Stakeholder Assessments and Decisions Assessments on Stakeholder In f uence

Signifcance of Economic, Environmental and Social Impacts Governance commitment and stakeholders

CORPORATE efcient & professional to the organization, transparent and GOVERNANCE accountable to the shareholders Bank Asia views corporate and responsible to the society governance issue very seriously and the environment. The board in every aspect of operation. of directors plays a key role in Accordingly the bank has set corporate governance. It is their its policies, procedures and responsibility to endorse the processes establishing culture of organization’s strategy, develop accountability and transparency directional policy, appoint and in dealing with responsibility supervise senior executives and and drive the bank to the right to ensure accountability of the direction. In Bank Asia, corporate organization to its owners and governance means increasing regulatory authorities. the stakeholders’ value by being Bank Asia Limited, as a BANK ASIA LIMITED BANK publicly listed company, is 22 a highly regulated company where Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC) play a very signifcant role in establishment and adherence to norms and regulations. In this regard, BSEC’s notifcation SEC/CMRRCD/2006- 158/134/ Admin/44 dated August 07, 2012 inserted many important issues like inclusion of independent Risk directors in the board of directors Management Committee and audit committee etc.

BOARD OF DIRECTOR’S MECHANISM AND INDEPENDENCE Bank Asia complied with relevant guidelines of Bangladesh Bank Executive Risk as well as Bangladesh Securities Management and Exchange Commission while Committee forming its board of directors. The number of members in the board of Bank Asia is 15 (ffteen) excluding the managing director as of December 31, 2014. In the Board 4 (four) members are Meetings held by board of director’s 33 Independent Director and all of them are highly educated, Major agenda covered in 2014 esteemed professional and/or Approval for Revised ICT policy (Version-02) of Bank Asia Limited successful businessman with long Formation of Executive Risk Management Committee experience in banking industry. Work environment The board approves the bank’s Formation of Core Risk Management Committee (CRMC) and Core budget and business plan and Risk Assessment Questioners reviews those on quarterly basis Memo on Fraud Detection and Management Process so as to give directions as per changing economic and market Proposal for Revising Salary Scale of the Bank environment. The board reviews Approval of Grievance Handling Policy and Female Anti- the policies and manuals of the Harassment Policy various segments of businesses Approval for Re-constitution of “Bank Asia Shariah Supervisory in order to establish efective risk Committee” (BASSC) management in credit and other Approval for Assistant Relationship Ofcer (ARO) Absorption BANK ASIA LIMITED BANK key areas of operations. In 2014, Policy Relaxation for the year 2014 & Separate Career Plan & New 33 meetings held where 1064 Pay Scale of ARO 23 memos were presented. 2 new retail deposit products for Mobile Financial Services Health Insurance Scheme for the employees of the Bank

EXECUTIVE Meetings held by executive committee 38 COMMITTEE Loans approval in 2014 million Taka The Executive Committee (EC) of the board of Bank Asia was Nos. of Memo Funded Non-funded frst constituted in January 2010 New sanction 234 2,153.36 1,694.30 to ensure efcient, competent, Enhancement 75 200.78 282.17 compliant and secured structure for approval of credit proposals Forced Loan 10 103.51 and business decisions. The number of members in executive committee is 7 (Seven) nominated by the board from AUDIT COMMITTEE directors. The EC time to time The audit committee of the reviews policies and guidelines board of Bank Asia was frst issued by Bangladesh Bank constituted in January 2003 regarding credit and other with the objectives of generating operations that are customized a platform for a compliant and and adopted by the management secured banking. In 2014, 20 after approval of the board of meetings held where 73 memos directors. EC approves credit were presented. proposals as per approved policy of the board. In 2014, 38 meetings held where 644 memos were presented. Water pollution due to dyeing process

Meetings held by audit committee 20 Major agenda covered in 2014 Supervise the management and control various risk factors coming up from banking operation Strengthen the internal control system and to act as a connecting force between internal and external auditors in order to bring a disciplined banking operation. Review the fnancial reporting process, the system of internal control and management, the audit process, compliance with laws and regulations, and its own codes of business conduct. RISK MANAGEMENT Examine the status of implementation of Bangladesh Bank COMMITTEE guidelines and bank’s own policies and manuals. To minimize risk while Undertake various special audits by the audit cell of the board and implementing the policies and the internal audit team of the bank BANK ASIA LIMITED BANK business plan of the Bank, Meet with the external auditors the Board has formed a Risk 24 Discuss about audit plan, the risk management processes and Management Committee as per preparation of the fnancial statements as per BAS and IAS. the guidelines of Bangladesh Bank. The Committee will Capital Figure in Million supervise whether the risks arise Structure Particulars Taka USD from credit, foreign exchange, internal control and compliance, December 31, 2014 Paid-up capital 7,629.96 97.20 money laundering, information Statutory reserve 5,051.47 64.35 technology, operation, interest Revaluation reserve 2,682.59 34.17 rate, liquidity and other sources Total are identifed, measured and Shareholders' General reserves 8.17 0.10 adequate systems are in place to

Equity Retained earnings 1,492.24 19.01 minimize such risks. Currently Million Taka Total shareholders' 5 (fve) members are in the Risk 16,864.42 214.83 Management Committee. In equity

16,864 2014, 09 meetings held where 31 Conversion rate used 1 USD equivalent to memos were presented.

14,618 Tk. 78.50 13,045 12,479 Meetings held by risk 09 management committee Major agenda covered in 2014 Risk Management Model 7,060 Business growth and Portfolio Core Risk Management health Process Risk Reports and Risk Audits Process/ Policy Internal Client Rating Model development Process and Policy Developments Monitoring of ERMC

1 Solvency and Capital Assessment Resolution Risk Management Rating 201 2010 2012 2013 2014

Naf river, Teknaf MANAGEMENT Meetings held by management committee 06 COMMITTEE Major agenda covered in 2014 The highest committee of Foreign trade module for the system was reviewed. The PPG for Management is the Management agricultural/rural credit policy was approved Committee (MANCOM), which is ICT Security Policy was approved responsible for recommending Online transactions limit reviewed and re-fxed strategy and monitoring A Loan Recovery Committee was recommended and formed business performance of the Manual for “Prevention of Money Laundering and Combating bank and its subsidiaries. The Financing on Terrorism” were fnalized MANCOM operates under SME product namely “Probaho” approved delegated authority from the Policy decisions were taken on “Manual modifcation of tenor board and membership of the of term deposits” and “settlement of matured DPS having management committee consists installments due” of the president and managing A structured system for holding of keys of Vault, Locker, ATM etc. BANK ASIA LIMITED BANK director, deputy managing was approved by the MANCOM. directors, c-level executives and Key Performance Indicators (KPI) were discussed, reviewed and 25 the heads of major operational recommended departments. The current number of MANCOM members Policy decision and operational procedures approved is 17. The name of the MANCOM members and their photos can be seen at pages 26 to 27 of the Integrated Annual Report 2014.

ALCO Meetings held by ALCO 11 The Asset Liability Committee Major agenda covered in 2014 (ALCO) comprising the senior Money Market scenario , Liquidity Position and market forecast. management, take strategic Foreign Exchange Market and market forecast. decisions on fxation of asset Business outlook. liability pricing, on liquidity Peer group analysis. management in the context of Fixation of asset liability pricing. changing market scenarios. Ratio analysis. When needed special ALCO Monthly trend and variance of Deposit Advance. meetings are held to respond to the unusual or seasonal market Balance Sheet Gap analysis as per time bucket. behavior or other volatile market Review of key ALM indicators and its impact scenarios. Proactive measures FC Infow-outfow & commitments scenario of ALCO kept the credit deposit Re-pricing gap (int. rate break down) of Asset-Liability. ratio within a comfortable range that helped the bank to earn through foreign exchange and money market products of treasury line. CREDIT COMMITTEE Sanction type of credit committee Number of Proposals Bank Asia’s credit committee Credit proposals processed by credit committee during 2014 is formed with a group Enhancement 139 of highly knowledgeable Modifcation 803 senior management who are New 662 responsible for assessing the One-time 1634 credit worthiness and ability Renewal 587 to repay debt of prospective Renewal with Enhancement 226 borrowers. As per complete Renewal with Reduction 74 and critical assessment, the Renewal with Restructuring 17 committee recommends for Rescheduling 56 approval or decline the credit Restructuring 9 proposal and put observations Regret 23 where necessary. Based on Reduction 31

BANK ASIA LIMITED BANK the recommendations, credit Total 4261 proposals are approved or 26 declined by the managing director or executive committee SRP COMMITTEE credit risk, operational risk and of the board or the board as per market risk. The SRP committee delegation of authority. The Supervisory Review Process is a representation of senior (SRP) committee is formed management working under under the second pillar of Basel board. The committee consists of II capital accord. Bank Asia has 9 (nine) members: President and developed internal methodology managing director (chairman to assess requirement of of the committee), chief risk additional capital to address ofcer, chief operating ofcer, risks that have not been chief business ofcer -SMR, considered under minimum chief fnancial ofcer, head of capital requirement (MCR), i.e. internal control and compliance, head of treasury operations and head of risk management. Core responsibilities of the committee is to ensure that bank has comprehensive Internal Capital Adequacy Assessment Meetings held by SRP committee 02 Process (ICAAP) and adequate Major agenda covered in 2014 level of capital is maintained Process /Policy Need and reported considering Risk Reporting System appropriately the level of risk. Process review and Reengineering A separate risk management Risk Appetite and Management Action Trigger committee (RMC) supervises Identifcation of Process Gap and implementation of control day-to-day risk identifcation, Pillar II Capital Planning and review of assessment process mapping and mitigation. Service Quality INDEPENDENT The functional responsibilities of honorarium and Tk. 214,240 for the Chairman of the board and Directors’ Traveling purpose. DIRECTOR of the President and Managing During 2013, the expenditures As part of good governance in Director are kept separate and incurred related to Directors’ the organization participation of independent of each other. honorarium was Tk. 1,720,000 independent opinion in the Board and for Directors’ Traveling was is considered as an important The Chairman is responsible Tk. 131,840. instrument. Independent for leading the board and directors in the Board exert an overseeing the entire functioning independent view on the policies of the bank is as per corporate MECHANISM TO and decisions of the Board and governance framework. Mr. A ensure that the policies and Rouf Chowdhury is the current PROVIDE ADVICE TO decisions are for the best interest Chairman of the Board. Through THE BOARD of the whole bank. Bank Asia has his dynamic leadership, he is Bank Asia maintains transparent appointed 4 (four) independent leading the Bank towards the and close communication with directors in the Board. They are success. its shareholders. With this view ASIA LIMITED BANK Mr. A M Nurul Islam a renowned we publish annual & semiannual 27 bureaucrat and three renowned The Managing Director leads the report, publishing quarterly retired bankers Mr. Mohammed bank by developing, designing fnancials and price sensitive Lakiotullah, Mr. Shah Md. Nurul and implementing the business information (PSI) in newspapers Alam and Mr. Mashiur Rahman. strategic plan of the Bank. The for shareholders, investors, President and Managing director, capital market experts, and other Mr. Md. Mehmood Husain is also The Independent Directors equity participants in a complete, responsible for developing long are also member of the sub- fair, accurate, timely and committees of the Board. One term business plans and the day-to-day operation. He is also understandable manner within of them are the members of the the framework of generally Executive Committee, two of accountable to the shareholders and the board of the bank. accepted accounting principles them are the members of the and legislation provisions. Our Audit Committee, where one bank’s shareholders can also is acting as Chairman of audit use their query rights or can committee and three of them BOARD provide any recommendations are the members of the Risk REMUNERATION Management Committee. or direction to the Board of AND PERFORMANCE directors at the annual general EVALUATION meeting and the Board answers POSITION OF THE all questions of shareholders. For attending the Board Meeting, Prior to AGM, the meeting date, CHAIRMAN OF Audit Committee Meeting, venue and agenda are announced Executive Committee and Risk THE BOARD OF and also the annual report is Management Committee, the submitted to the shareholders DIRECTORS AND Directors receive an honorarium through our bank’s website or THE PRESIDENT of Tk. 5,000 each. During 2014, the expenditures incurred through diferent channels. AND MANAGING related to directors were After getting feedback from DIRECTOR Tk. 2,770,000 for Directors’ shareholders at AGM, the Board then directs the management to Board of Directors and Senior Management participated at an exclusive workshop on Corporate Governance conducted by IFC implement the recommendations AVOIDING CONFLICT restricted subject to full fling of the shareholders. If the certain terms and conditions Management requires making OF INTEREST of regulatory guidelines. any change in policy or practice, In fnancial intuitions there If there is any related party BANK ASIA LIMITED BANK the Board approves those exists high possibility of arising transaction, the management 28 changes; otherwise if this conficts of interest between discloses the matter in the authority of approval is beyond Board of directors and the Annual Report and it is also the power of the Board, this can management of the company. To approved by the general be approved by the shareholders avoid such unwanted situation shareholders in AGM. of Bank Asia Ltd at AGM through Bank Asia has separated the Executive committee of the voting. In applicable cases extra responsibility/authority of these Board can approve loan to ordinary general meeting (EGM) two interest groups of the bank. anyone up to a limited portion. of general shareholders may To avoid confict of interest Audit committee regularly be called. So far 15 AGMs and and also to make accountable reviews the fnancial and 9 EGMs have been successfully the bank has already taken the other related statements and arranged. following measures: gives recommendation to the Loan to the directors is management regarding any changes in policy and also shareholding presents to the Board for sturcture further evaluation. Board of directors’ approval is Shareholding Structure needed for loan re-scheduling. 0.70% December 31, 2014 30.24% 46.47% No. of 3.67% Category shareholders 0.32% Sponsor & Director 26 18.60% General Public 15,644 Foreign Investments 2

Sponsor & Director Investment Companies 103 General Public Institutions 307 Foreign Investments Investment Companies Non Resident Bangladeshi 129 Institutions Non Resident Bangladeshi Total 16,211 G4-17 Organogram Human resources Human capital management Human capital development Market Market & research planning Corporate afairs & branding Marketing Strategies Strategies & branch development Treasury (mid ofce) CRM – small medium & retail Risk Recovery Management Management of Management risk banker’s Reconciliation & returns Credit risk management (CRM) – corporate Accounts Accounts Accounts management Budget & Budget budgetary control Finance Investment BANK ASIA LIMITED BANK Basel capital accord & implementation capital mgmt. MIS and fnancial reporting IS/IT Security assurance & control

Central Clearing 29

Financial control M

t n

e g r i i n D

g Technology Quality & management business process reengineering Branches Branches control AML & compliance Logistics support services Operations Legal Legal process Service centers Treasury ofce back Foreign remittance management Ofshore banking Foreign Foreign trade management operations International Foreign trade Foreign operations and support services Correspondence relationship & transaction management Retail banking Specialized Credit SMR Islamic banking SME Business Alternative Alternative delivery channels Credit cards Treasury operations (front ofce) Business Corporate Corporate assets & client origination Corporate liability 30 BANK ASIA LIMITED Major FinancialHighlights Major Polluted Buriganga river inDhaka Net Tax Proft after Operating Proft Total Expenditure Total Income Remittance (Inward) Remittance Export Import Loans andAdvances Deposits Paid upCapital performance Million Taka Total Assets 2010 105,198 2011 117,729 2012 140,361

2013 163,778 2014 182,731 140,869.29 116,808.85 Million Taka Total Capital 110,192.54 Financial 20,385.97 41,732.50 77,646.91 14,607.14 5,778.83 7,629.96 2010 8,157 2,218.69 2011 12,447 2014 2012 13,930

2013 15,575 110,738.08 104,911.26 133,489.37 34,334.40 19,672.29 14,256.53 71,968.83 6,936.32 2014 17,843 1,459.82 5,415.76 2013 Assets (ROA) Return on 2010 2.22% 2011 1.72% 106,746.15 110,061.78 66,478.34 92,328.82 12,385.22 32,110.10 17,437.02 6,305.75 2012 0.70% 5,051.80 908.00

2013 0.96% 2012 2014 1.28% Share-after split NAV per Taka 74,794.50 21,776.70 82,819.97 10,564.13 99,414.20 14,606.10 95,131.10

2010 5,254.79 4,041.97

23.51 1,916.21 2011 23.75 2011 2012 20.69 2013 21.07 110,417.89 79,504.23 86,365.64 12,091.58 18,441.71 2014 57,281.67

22.10 Million Taka 4,248.86 1,929.58 3,002.74 7,842.72 2010 Million Taka Total Assets 2010 105,198 2011 117,729 2012 140,361

2013 163,778 2014 182,731 Million Taka Total Capital 2010 8,157 2011 12,447 2012 13,930

2013 15,575 2014 17,843 Assets (ROA) Return on 2010 2.22% 2011 1.72% 2012 0.70% 2013 0.96% 2014 1.28% Share-after split NAV per Taka 2010 23.51 2011 23.75 2012 20.69 2013 21.07 2014 22.10 Key ManagementRatios Dividend Cover ratio Earnings PerEarnings Share Cost toIncomeratio Salary Exp.tototalOverhead Exp. Salary Burden ratio Spread Yield onLoansandAdvances Administrative Cost Cost ofDeposit Credit Depositratio Million Taka Employee Profit per 2010 3.43 2011 3.18 2012 3.40 2013 3.38 2014 3.26 Equity (ROE) Return on 2010 32.12% 2011 19.61% 2012 7.11% 2013 10.55%

40.34% 46.98% 82.92% 2014 13.62% 0.52% 2.96%

14.09% 6.01% 7.61% Non Interest Non Interest 2014 1.94 2.91 Million Taka Income Non InterestExpense Expense Banking Islamic Million Taka 2010 Deposit 3,296 36.53% 46.90% 78.59% 14.99% & 0.42% 2.63% 6.18% 8.81%

2,609 2013 2.10 101 1.91 2,422 2011 2,103 2010 2,547 Investment 2,793 35.40% 83.89% 15.20% 46.74%

110 Million Taka unlessotherwisespecifed 2.82% 9.49%

2,361 5.71% 0.01% 2012 1.44 2011 1.31 Non InterestIncome 2012 3,424 2,417 2,857 2,769 2012 157 2,210 Profi 36.88% 46.75% 87.06% 14.11% -0.11% 5.02% 2.88% 9.09% 2013

4,067 3,117 2011 3.04 2013 1.83 t 3,495 2,299 155 3,907 2014 5,090 2014 92.06% 12.72% 36.31% 2,443 42.18% -0.37% 5.57% 2.08% 3,477 7.15% 2010 4.59 68 1.61 31 BANK ASIA LIMITED Primary Brands products and services

BRANDING business events like the AGM, “PROBAHO” SME The corporate afairs & branding EGM, annual business conference LOAN PRODUCT department was formed in to improvising branch opening activities in and outside Dhaka During the year 2014, Bank Asia September, 2011. Initially, the has signed an agreement with branding department focused on were all conducted by branding in a beftting manner. In addition, SME Foundation where Bank aligning the marketing / branding Asia will receive Tk.30.00 million activities of all the important branding team also launched new products through gala from SME Foundation as Pre- departments of the bank with a fnance for fnancing in Micro, view to ensuring consistency of events working together as team with other departments. Small & Medium Enterprises of the Bank Asia brand. Eventually, Electric & Electronic products the department stressed on re- Among a number of activities that has earned the bank a very manufacturing cluster of Dhaka branding of the islamic window, city and adjacent vicinity @ 9% retail deposit products, SME prestigious position in 2014 were the remodeling of the corporate interest rate under the product products etc. Gradually, starting name of “Probaho”. Probaho is a BANK ASIA LIMITED BANK from organizing important website, re-designing of the credit cards etc. collateral free single digit interest 32 loans are given to the targeted entrepreneurs of Electrical Product Manufacturing Cluster located at Jurain, Shampur of Dhaka. This product is mainly for those small entrepreneurs who remain out of banking services due to lack of capacity, experience, documentation, collaterals etc. Under the credit wholesaling program Bank Asia will extend collateral free loans to Electric & Electronic manufacturing Micro, Small & Medium Enterprises up to Tk. 0.80 million. During the year 2014, Bank Asia disbursed Tk. 26.50 million under this product through its 40 number of accounts @ 9%.

Bank Asia fnanced Electrical goods manufacturing project under Probaho at Jurain, Shampur, Dhaka PAYONEER For E-commerce development of the country, the Government of Bangladesh has put enormous emphasis as it entails far- reaching positive impact in the society. To make the service export related payments easier and cheaper for the benefciaries in Bangladesh and to take banking services further ahead towards aligning with “Digital Bangladesh”. Bank Asia has come forward by making Strategic Dr. Atiur Rahman, Governor of Alliance with OPGSPs. Bank Asia Bangladesh Bank, launching ASIA LIMITED BANK is the pioneer to set up strategic the Online Payment Gateway 33 alliance with one of the world Service (OPGSP) ‘Payoneer’ largest OPGSP “Payoneer” in October 27, 2014.

Payoneer is an online payment business and professionals from We expect remittance of $ 18 solution that allows users to more than 200 countries to reach million which shall be channeled transfer money and receive new audiences by facilitating through ‘Payoneer’ annually payments through the Internet. seamless, cross-border payments. in the form of cash payout Since 2005, Payoneer has Through its service, freelancers and crediting bank accounts. provided thousands of companies can receive their earnings very Mentionable that Bank Asia is and millions of payees with quickly & easily. In our country the frst and only Bank to set- multiple ways of payouts. about 1.5 lac freelancers are up arrangement with OPGSPs Payoneer helps to empower directly involved in exporting in Bangladesh. With these global commerce by connecting their services and routing arrangements with OPGSPs like businesses, professionals, their earnings of totaling $ 134 ‘Payza’ and ‘Payoneer’; we hope countries, and currencies with million last fscal year through to fourish further adding to the its innovative cross-border diferent channels. Moreover, bottom-line of the Bank. payments platform. In today’s freelancers get daily exchange borderless digital world, rate and a lower service charge Payoneer enables millions of for facilitating the repatriation of their remittances. AGENT BANKING Agent banking provides banking people have low income. and fnancial services to the Existing bank charges are under served population through high compared to their engaged agents under a valid income. agency agreement, rather than a Low education & illiteracy: teller/ cashier. Agent banking is Low educated and illiterate quickly becoming recognized as a people cannot access existing viable strategy in many countries fnancial services. for extending formal fnancial Poor product/ channel design: services into poor and rural Available fnancial products areas. cannot cater all segments of the society as well as fnancial BANK ASIA LIMITED BANK Agent Banking requires to demands. 34 overcome the following major constraints of fnancial inclusion: Bank Asia has taken initiative to overcome all those constraints Long distances & low by implementing Agent Banking population density: There are in all districts of Bangladesh. many areas where people and Bank Asia has implemented 49 fnancial activity not enough Agent outlets in 17 districts of to run a formal banking Bangladesh. branch. High bank cost relative to income: Most of the unbanked

Customer service provided by the Agent Banking booth of Bank Asia Transactions details for the year 2014 Provide secured banking services to the un-banked No. of Amount of Trans. SL. Transaction Type people throughout the Transaction (Tk.) country 1. Deposit 25,299 342,610,594 Build agent booths all over the 2. Withdrawal 14,769 307,622,601 country and create fnancial 3. Fund Transfer 1,381 55,787,350 service entrepreneurs Provide foreign inward 4. Foreign Remittance 4,765 13,1034,148 remittance services to 5. Utility Bill Payment 21,156 15,407,286 the families of expatriate 6. Passport Fee Collection 4,262 14,404,900 Bangladeshies Provide facilities for utility Total 71,632 866,866,879 bill payment, Passport fee payment, social safety net st

Agent Banking balance as on 31 December, 2014 payment services, etc. ASIA LIMITED BANK SL. Account Type No. of Account Current Balance (Tk.) Process Agricultural, SME 35 1. Savings 13,540 62,362,043 & Retail loan from the agent points 2. Current 980 19,552,015 Enable e-Commerce services 3. DPS 2,690 15,053,500 through the agent outlets Total 17,210 96,967,558 from remote areas Promote school banking in the Bank Asia is ofering following Debit/ Credit card paper locality services for agent banking: processing Financing solar home system Account opening services Card based transaction of any and renewable energy sectors Deposit bank (Human ATM) as a green banking initiative Withdraw Agent banking will play an Transfer The agents are located across the country. The outlets will be important role for the fnancial Inward Foreign Remittance inclusion of the unbanked e-Commerce used as e-Commerce hub. The producers may get services population. In the years to come, Utility Bill Payment Bank Asia will fnd new retail Social Safety Net cash from agents for inventory management and product base in this area where banking payment will be done through remote Balance Inquiry oferings. The agent will also help to deliver the products to the access system like Mobile, POS, Account Statement (mini) Agent etc. Bank Asia will emerge Insurance Premium consumer. The agent is bridging the producer and consumers. as a network bank throughout Passport fee collection Bangladesh. Retail base is SME loan processing Bank Asia Agent Banking success considered the only solution for Agricultural Loan processing depends on meeting the following sustainable low cost deposits as Retail Loan processing objectives: well as fnancial inclusion. Support green banking initiative like Solar Home system SCHOOL BANKING It familiarizes young generation Bank Asia has more than 4,387 SMART JUNIOR with banking transactions accounts (including MDPS) with and creates social awareness balance of Tk. 74.07 million. SAVER of savings habit among the To expand the arena of children. To popularize the School banking is a step banking service through product in the target market towards fnancial inclusion and developing relationship with segment, Bank Asia is conducting fnancial literacy goals taken next generation, Bank Asia is diferent campaigns in diferent by Bangladesh Bank, as it helps ofering a school banking product educational institutes. The children learn about the banking from its Islamic Banking unit Bank distributes prizes to system. Besides, it encourages named Smart Junior Saver. students scoring bright result children to develop the habit of It was launched in November every year since 2012. It may saving. To explore the theme 2011 on the eve of the 12th be noted that to maintain the Bangladesh Bank initiated anniversary of the Bank. The expenditure of scholarship/ to organize School Banking product is designed specially for Conferences at Divisional City BANK ASIA LIMITED BANK prize/ fnancial assistance the children and students under related to Smart Junior Saver, and Greater District levels. 18 with a bundle of benefts. 36 a fund from Operating Proft of In the year 2014, Bank Asia The benefts include higher Islamic Banking is set aside on participated in the School Income Sharing Ratio, charge half yearly basis @ 0.25% p.a. Banking Conferences under free account maintenance, free on average daily balance of total guidance of Bangladesh Bank in debit card for students, gift for deposit under the Smart Junior Chittagong, Rajshahi, Khulna and intelligent/meritorious students Saver. As on December 31, 2014. Sylhet. & fnancial aid in case of earning guardian’s death.

Ms. Titeersha Iqbal Nur of Excellent High School, Tongi Gazipur is receiving Certifcate from Head of Islamic Window, Smart Shantinagar Branch. Junior Saver

4,387

3,134 74 1,913

40 A/c of

16 No Deposit 2012 2013 2014 MOBILE FINANCIAL those services using alternative Introducing green fnance SERVICES ‘HELLO’ channel other than core banking. Preferences are given in Ofering a range of new and Once these services are launched, fnancing eco-friendly business unique services, Bank Asia they are expected to boost up activities and energy efcient Limited has launched Mobile both the transaction and revenue industries. We encourage Financial Services “Hello”, on volume of ‘Hello’ which will investment in establishing May 17, 2014 with a view to eventually grab substantial MFS environmental infrastructure carry on the global commitment market share. such as renewable energy project, towards fnancial inclusion and clean water supply project, access. DISCLOSURE ON wastewater treatment plant, PRODUCT PORTFOLIO solid & hazardous waste disposal Hello started with ofering basic Incorporation of plant, bio-gas plant, etc. MFS features: Cash In, Cash environment risk in core Out, Fund Transfer, and Mobile risk management As Bank Asia has a participation

Airtime Recharge along with ASIA LIMITED BANK We incorporated environmental agreement with Bangladesh Bank innovative ones as well like and climate change risk as under the refnancing scheme for inclusion of micro life insurance, 37 part of the existing credit risk lending in solar energy, bio-gas, micro saving products, foreign methodology prescribed to efuent treatment plant (ETP) remittance disbursement, assess a prospective borrower. and hybrid hofman kiln (HHK); utility bills payment, corporate This includes integrating we periodically determine salary payment, passport fees environmental risks in the business ventures under these collection and others. With checklists, audit guidelines and sectors where we can provide increasing service coverage reporting formats. All of this lending facilities. through distribution network help mainstream environmental expansion and incorporation of risk that covers possible sources Our corporate clients should major Telecom Service providers of environmental risk such as have ETP set up in their resulting tapping of more land use, climate change related respective factories and if they customers, we aim to leverage events (cyclone,drought), animal do not have it then we may these advantages to increase the diseases/pathogens such as avian provide fnancing for setting up revenue generation. infuenza, solid waste including ETP. Consumer loan programs With distributors and agents waste feed, animal waste, may be applied for promoting covering the whole country, carcasses, sediments, wastewater environmental practices among coupled with vast branch discharges, hazardous materials, clients. Bank Asia is continuously network ofering the service, the etc will be reviewed under working for awareness building Bank served 1, 87,621 customers environmental due diligence regarding environmental and through 12,677 agents of 80 (EDD) checklists. social risks and opportunities distributors in 2014. for it’s borrowers as well as stakeholders. For relief of global All the branches/ SME centers The bank is also preparing are obligated to incorporate ‘Hello’ as the launch pad for environment risk management rolling out some of our Unique (ERM) component in their credit Selling Products (USPs) so that proposals as per guideline. customers have options to avail Products and services

Business Banking Over Draft Treasury Overdraft Somadhan – Secured Money Market Secured Overdraft Overnight Lending and Secured OD (Earnest Money) Special Products Borrowing Working capital fnance Utshob- Seasonal Business Repo and Reverse Repo Loan against Trust Receipt Subarno- Women Swap Loan against Cash Incentives Entrepreneur Sale and Purchase of Bill discounting Treasury Bill & Bond Loan Syndication and Credit Card Placement of Fund structured Finance VISA Platinum Card (with Term Borrowing Packing Credit Priority Pass) Investment Demand Loan VISA Classic Local Card Demand Loan (work order) VISA Classic Dual Card Foreign Exchange Time Loan Visa Butterfy Card Spot Transport Loan VISA Gold Local Card Forward BANK ASIA LIMITED BANK House Building VISA Gold Dual Card Currency Swap Loan(Commercial) 38 Hajj Card Term loan Virtual Card Deposit Product Lease Finance Master Silver Card Saving Account Letter of Guarantee Current Account Letter of Credit (Sight/ Master Gold Card SME Credit Card Short Notice Deposit Deferred/UPAS/EDF) Fixed Deposit Back to back Letter of Credit LankaBangla Card Cheque Gift Card Foreign Currency Account (Local & Foreign) Deposit Pension Scheme Agriculture Financing Monthly Beneft Scheme Staf Loan ( Car Loan, House Double Beneft Scheme Building Loan, Provident Triple Beneft Scheme Fund Loan) Export Cash Credit

Small and Medium Enterprise (SME) Term Loan Subidha -Unsecured Trading Sondhi -Secured Trading Sristi – Unsecured Manufacturing Shombridhi- Secured Manufacturing Shofol – Unsecured Service Sheba- Secured Service Probaho- Unsecured Trading/ Manufacturing

Natural beauty of the river at Moheshkhali Island All branches and agent banking booths of Bank Asia are receiving Pasport Processing Fee. Utility fees payment School, College & University fees collection Credit Card Machine Readable Passport (MRP) fees collection.

Of-shore Banking Unit (OBU) Products On-shore Import & Export Bill Discounting Working Capital Finance Trade Finance Loans & Advances to wholly foreign owned entities Term loan to local entities subject to BOI approval Service Products Bank Asia Sanchoy Plus Nostro account services to ATM Services Shonchoy E Koti Poti other local banks Remittance Service Locker Service Islamic Banking Capital Market Operation

Online Banking ASIA LIMITED BANK Deposit Products Trading (Buy-Sell) Services Internet Banking Margin Loan Al-Wadiah Current Phone Banking 39 Account(AWCA) CDBL Services Mobile Banking Research Services Mudaraba Savings SWIFT Account(MSA) Centralized Trade Services Mudaraba Special Notice Student File Deposit Account(MSNDA) Travelers’ Cheque Mudaraba Term Deposit E-Commerce Account(MTDA) of diferent E-Procurement Tenure Debit Card Mudaraba Hajj Savings Contact Center (16205) Scheme(MHSS) Remote Banking (EBEK) Mudaraba Deposit Pension Agent Banking Scheme(MDPS) Electronic Fund Transfer Mudaraba Monthly (EFT) Proft Paying Deposit Scheme(MMPPDS) Smart Junior Saver(SJS) Cash Waqf

Investment Products We have our own Bai Murabaha Muajjal specially trained customer support team to meet all Hire Purchase Shirkatul your banking needs. This is how we are committed Melk(HPSM) to providing you with the most beneﬁcial Musharaka customer service Quard against Accepted Bills experience. The One and Only helpline for all customers. We are available 24/7 for any assistance. One of the Solar powered branch of Bank Asia

warming and air pollution, Bank If environment risk is rated businesses involved with energy Asia fnanced Tk. 75 million “high” the proposals are efcient HHK/Tunnel Kiln to BD Thai Cosmo Ltd. and approved by the executive technology. disbursed Tk. 295.76 million to committee/ board and additional Nasir Energy Savings Lamp Ind. environmental and social IMPROVING STAFF Ltd. Besides this, the Bank also covenants are incorporated. fnanced Tk. 20 million to Sadma COMPETENCY FOR fashion for installation of Efuent MONITORING ENVIRONMENTAL Treatment Plant (ETP). In 2014, CLIENTS’ AND SOCIAL Bank Asia fnanced Tk. 15 million ENVIRONMENTAL RESPONSIBILITY for installation of ETP at Bengal To achieve the business at the Fine Knitex Ltd. AND SOCIAL COMPLIANCES optimum level and to sustain Bank Asia has introduced sector with the changing nature of ASSESSING AND specifc environmental policies business environment, Bank Asia BANK ASIA LIMITED BANK in addition to environmental risk always puts enormous emphasis SCREENING to improving staf competency 40 ENVIRONMENTAL management policies and green banking policies for cement, brick even for environmental and AND SOCIAL RISKS manufacturing, ship breaking, social responsibility. For assessing environment risk, sugar, leather/ tannery, food EDD checklists, 1 general and We frequently arrange training/ processing, hospital & clinic, 10 sector specifc (additional), workshops on ERM and green pulp & paper, rubber & plastic, are provided along with a banking for our ofcers and light engineering, agriculture. guidance matrix for using as executives. During 2014, total We conduct monitoring through minimum standard to process 49 training programs have obtaining site and environmental credit proposals. Ten specifc been arranged by diferent clearance certifcate and site sectors are agriculture, cement, departments regarding capacity visit to check compliance of chemicals, engineering & basic building and awareness environmental and social metal, housing, pulp & paper, development program on covenants. Our environmental sugar & distilleries, tannery, ‘Green Banking’ in its own due diligence process identifes textile & apparels, and ship department. In addition, there potential risks, determines their breaking. are 4 external trainings was impact and severity and suggests organized related to Green way to mitigate them. EDD checklist guidance matrix: Banking & Environmental Risk Management, Reporting format Sector General Overall In 2014, Bank Asia fnanced Tk. of Green Banking activities, Specifc 44.50 million in 8 projects to Financial inclusion, CSR and low low low set up Zigzag chimney for better Green Banking. energy efciency and lower moderate/ moderate/ moderate emissions. We fnanced As greening of mind, this year low low Tk. 410.01 million to Eeta & Tiles Bank Asia has provided four If any one or both Ltd. and Tk. 147.31 million to training on Green Banking under the general & sector high H. Auto Bricks & Ceramics Ltd. Foundation training course in its’ specifc is ‘high’ for their brick manufacturing training institute where a total of 72 stafs participated in this Pick & drop facility availed by female employees of the Bank training program. Our credit risk BUSINESS PORTFOLIO management (CRM) department Business line wise loan outstanding summary of Bank Asia as on has introduced e-sanction advice December 31, 2014 was as under: for all approved credit facilities. Corporate In addition to this, OCAS (Online Credit Approval System) has been developed as a part of technological improvement Portfolio of Loans & Advances of Bank 80% of the Bank. 46 branches of Asia has always remained focused on the Bank have been imparted Corporate Financing extensive training on operation Outstanding of OCAS in 2014. This system Tk. 93,363 miilion will reduce lead time, ensure SME accuracy, strengthen security ASIA LIMITED BANK and make accessibility easier. With successful implementation 41 of OCAS, Bank Asia will make a Bank Asia has been sincerely putting 12% great stride in online banking its eforts to amplify its SME related with an edge on its competitors. activities. All the proposals of CACO Outstanding (Corporate Assets & Client Tk. 13,719 million origination), MACO (Mid-market Consumer Assets & Client Origination), SME (Small & Medium Enterprise) & Bank Asia is trying hard to create a CFC (Consumer Finance Centre) sustainable healthy portfolio of consumer specially one shot proposals are credit through diferent products like 3% processing through OCAS. House Finance, Auto Loan, Consumer Durable Loan, Unsecured Personal Loan, TRANSPORT Senior Citizen Support, and Loan for Outstanding As part of environmental Professionals. Tk. 4,073 million responsibility 13 out of 24 Credit Cards vehicles used for pick & drop facility and majority of the pool vehicles have been converted into Credit card business is being run on CNG driven. Moreover, executives severe competition. Continuous loyalty 1% of the Bank are provided with and customers’ reward beneft package car facility (298 cars) and they play key roles to retain the customers. are encouraged to convert their Outstanding cars into CNG driven (duel fuel). Tk. 3,477 million. More than 80% of those cars have already been converted into CNG driven. Agricultural ECONOMIC ENVIRONMENTAL To contribute in the rural development, AND SOCIAL VALUE Bank Asia has been working in 1% GENERATED Agricultural sector. In 2014 Tk. 2,416.69 THROUGH VARIOUS million has been disbursed to serve 85,317 PRODUCTS benefciaries. Outstanding Tk. 1,114 million Small and medium enterprise Islamic (SME) SMEs have historically made signifcant contribution in To achieve sustainable economic growth with justice & equity, and to serve a major 3% economic advancement of segment of business under religious frame diferent countries. Due to BANK ASIA LIMITED BANK work Bank Asia now operating fve Islamic its manifold signifcance in 42 Banking Windows. Outstanding economic development, Bank Tk. 3,477 million Asia has taken SME fnancing very seriously with a view to contribute to the poverty REGION WISE PORTFOLIO eradication and employment Division wise portfolio summary as on December 31, 2014 was as generation. At the end of year under: 2014, the SME portfolio stood at Million Taka Tk. 13,719 million. Division Urban Rural Total % Dhaka 79,086 4,527 83,613 71.58% Chittagong 25,051 2,522 27,573 23.61% SME sectoral Khulna 1,303 216 1,519 1.30% distribution Rajshahi 1,898 740 2,638 2.26% 2014

Barisal 164 - 164 0.14% 2% Sylhet 900 301 1,201 1.03% 2% Rangpur 101 - 101 0.09% Total 108,503 8,306 116,809 100.00% 20%

76%

Trading Manufacturing Service Women Entrepreneur SECTORAL DISTRIBUTION OF CREDIT The Bank’s loans and advances portfolio increased to Tk. 116,808.85 million achieving a growth of 11.34%. 2014 2013 SL. % of % of Sectors/Sub-Sectors Million Million No Funded Funded Taka Taka Loan Loan 1 Industries Agriculture and Jute 1,579.11 1.35% 3,216.35 3.07% Cement 1,646.80 1.41% 1,046.49 1.00% Chemicals 1,207.93 1.03% 1,219.17 1.16% Electronics 392.81 0.34% 986.86 0.94% Food & Allied 6,878.99 5.89% 5,883.24 5.61% BANK ASIA LIMITED BANK Paper 3,303.54 2.83% 3,583.73 3.42% 43 Readymade Garments 6,128.24 5.25% 7,924.20 7.55% Real Estate 5,123.09 4.39% 3,947.28 3.76% Steel 11,851.85 10.15% 6,882.16 6.56% Textile 6,283.45 5.38% 6,985.00 6.66% Others 14,235.57 12.19% 15,264.79 14.55% Subtotal 58,631.38 50.19% 56,939.28 54.27% 2 Infrastructural Power 1,498.71 1.28% 1,713.70 1.63% Telecom 339.40 0.29% 847.55 0.81% Construction 4,338.95 3.71% 3,232.80 3.08% Transport 3,420.20 2.93% 3,597.30 3.43% Sub total 9,597.26 8.22% 9,391.36 8.95% 3 Commercial Lending 37,105.86 31.77% 26,100.36 24.88% 4 Export Financing 1,765.30 1.51% 812.3 0.77% 5 House Building Loan 163.89 0.14% 204.98 0.20% 6 Consumer Credit Scheme 4,073.10 3.49% 3,326.87 3.17% 7 Small & Medium Enterprise (PPG) 2,675.51 2.29% 2,605.57 2.48% 8 Staf Loan 1,090.19 0.93% 814.29 0.78% 9 Credit Card 1,063.17 0.91% 951.9 0.91% 10 Non-Banking Financial Institutions 643.21 0.55% 3,764.36 3.59% Total 116,808.85 100.00% 104,911.26 100.00% Agricultural/rural credit Bank Asia always thrives for fnancial inclusion through banking the un-banked. As part of this initiative we disburse very low interest agri/rural credit by its own network and NGO network to the low income groups like share croppers and marginal farmers etc. Till date total Paddy feld 362,161 farmers have received fnanced by Bank Asia Ltd. beneft under this scheme. Financing solar home As on 31-12-2014 the status of the Agricultural/Rural Credit is as BANK ASIA LIMITED BANK systems under: Under a special fnance program, 44 Million Taka in 2014, Bank Asia disbursed Particulars Own NGO Total Tk. 0.04 million to 3 borrowers Network Network for installation of Solar Home Disbursement (from 01-01-2014 to 755.46 1,661.23 2,416.69 Systems. This electrifcation 31-12-2014) program beneftted rural households by solar light. The Outstanding (as on 31-12-2014) 297.45 816.09 1,113.54 aggregated households are 6,503 No. of benefciary during 2014 3,969 81,348 85,317 till now.

Cultivation of maize, spice & oil-seed During the period, we disbursed Tk. 3.88 million to 42 farmers in Bogra, Faridpur and Mohadevpur at 4% interest rate for cultivating pulse, oil seed, spice and maize directly through our rural branches. We are promoting and advertising this facility features through our branches to encourage the farmers.

Financing Efuent Treatment Plant (ETP) ETP project fnanced by In 2014, Bank Asia has disbursed Bank Asia Tk. 15 million for installation of Efuent Treatment Plant (ETP) amounting Tk. 1.20 million Policies for the fair that will help to reduce discharge through Payza and targeting to of untreated factory waste water excel our service tremendously design and sale of into the rivers. in 2015. Bank Asia started the fnancial products and operation of ‘Payoneer Inc’ on services Financing environment October 27, 2014 and we expect Our intentions to address the remittance of $ 18 million which needs of our customers frst friendly brick kiln shall be channeled through require us to provide products In 2014, Bank Asia fnanced ‘Payoneer’ annually in the form and services in the way our Tk. 44.50 million in 8 projects to of cash payout and crediting customers want them delivered set up Zigzag chimney for better bank accounts. With these with exemplary service and energy efciency and lower arrangements of OPGSPs like convenience and at competitive emissions. We fnanced ‘Payza’ and ‘Payoneer’; we hope pricing. Our customers also Tk. 410.01 million to Eeta & Tiles to fourish further adding to the expect us to be accessible, to Ltd. and Tk. 147.31 million to bottom-line of the Bank. respond to their queries in ASIA LIMITED BANK H. Auto Bricks & Ceramics Ltd. efcient way, to be open and for their brick manufacturing Audit of transparent about our products 45 businesses involved with energy environmental and and services, and to provide efcient HHK/Tunnel Kiln knowledgeable, objective and technology. social compliances The internal audit team under professional advice. These internal control and compliance expectations go beyond the Online payment gateway department (ICCD) carries out need to comply with consumer protection and fnancial services audit & inspection of all branches and credit risk management regulation; they come down to Multitudes of extremely talented earning our customers trust by Bangladeshis are earning foreign (CRM) department at least once in a year and examine delivering suitable products and currencies by exporting services services via the right distribution in nonphysical form e.g. data compliances of environmental covenants in the credit sanction channels and at fair pricing or processing, ofshore IT service, returns. software development, software memos along with other general customization, business process reviews. Implementation of environmental and social We are also committed to outsourcing (BPO) etc. Bank enhancing consumer fnancial Asia is the frst and only Bank to policies and risk assessment procedures were also audited by capability and invest in ways to set-up arrangement with OPGSPs help our customers improve their in Bangladesh like ‘Payza’ and external as well as Bangladesh Bank audit team every year. fnancial decision-making. All our ‘Payoneer’ to bring such hard fnancial products are delivered earned money. It would give a External auditors must cover 80% of total loan portfolio. On by using various methods like strong competitive edge of Bank direct selling, cross selling by Asia over the other players the other hand, the central bank covered 11 branches, OBU, 2 branches as well as corporate in the market by catering the ofce employees’. There are Banking need of an emerging Islamic windows and corporate ofce business departments in divisions among corporate clients sector. In 2014, we have served based on the loan portfolio just more than 69 benefciaries their comprehensive audit and inspection in 2014. to ensure timely and efective services to our clients. In a way advices to improve consumers’ ISLAMIC BANKING to keep pace with our objectives fnancial decision-making. in mind, we have developed loan By participating in various SERVICES Bank Asia commenced its much products policy. The policies are fnancial information fairs and acclaimed islamic banking designed in a way that every formal/informal gathering with services in 2008 and the bank rules can be well understood corporate customers, we try has 5 islamic banking windows by the delivering channels i.e. to support our customers in in Dhaka, Chittagong and Sylhet branch as well as corporate ofce understanding the advantages divisions. We provide this service employees’ to communicate and risks associated with with the help of a separate to the customers in the most fnancial products and services, Islamic banking software– convenient way. Moreover, there as this can enable them to take Hikmah to provide real-time are fexibility in the policies in decisions that are better adapted online banking service from a way so that our customers to their personal circumstances. our entire branches network can get customized services Our fnancial experts are also through islamic banking service

BANK ASIA LIMITED BANK according to their need as well as taking part in various related desk in every branch under that can protect the interest of seminars around the country salamah brand. ISR (income 46 the bank. where they are sharing their sharing ratio) based unique proft insights and recommendations. distribution system on mudaraba There are loan product policies deposit has given our islamic on commodity fnance, export We aim to ofer our fnancial banking services much acclaim fnance, work order fnance, products and services to all and wide acceptance. lease fnance, earnest money segments of the society. Our fnance etc. A few more loan branches have barrier-free product policies are under way access, ATMs are located at to be developed based on our convenient and with easily customers’ expectations. Credit usable interface. As a result, policy, sectoral allocation of our customer retention rate the bank etc. are also reviewed is comparatively higher than periodically. competitors’.

INITIATIVES TO ENHANCE FINANCIAL Islamic LITERACY BY TYPE Banking

Million Taka 5,090 OF BENEFICIARY

In addition to integrating better 4,067 3,495 3,424 3,477

customer suitability in our 3,296 2,857

product and service oferings, 2,793 2,609

we are also committed to 2,103 enhanc the fnancial capability 155 101 157 110 of our customers. We do this by 68 providing insights, tools, and 2010 2011 2012 2013 2014 Deposit Investment Proﬁt Environmental performance

ENERGY Financing renewable SMS Alert, Net Banking, E Fund energy and carbon ofset Transfer, and Digital Attendance Energy Savings and E Mail corresponding, Our new Corporate Ofce, where projects which helps reducing printing we have moved during the year During the year 2014 we have paper. During 2014, our Cards 2011 has been designed to utilize disbursed agricultural credit Department through its digital maximum usage of natural of Tk. 2,416.69 million to flling system where 14,400 lights, which reduces energy 85,317 farmers, which helps pages of total 1,800 fles have consumption substantially sequestration of carbon. been archived. During the compared to other conventional period from January-December building. Around one third of the Reducing Energy & 2014 consumption of paper by bulbs being used in this ofce are Bank Asia is Tk. 14.61 million. of energy savings type. We are Resource Consumption Unlike every year, the Bank has saving around 40% electricity Instruments of Green Banking planned to develop e-Cards for its (used for lighting purpose) ofered by Cards Division include

stakeholders this year. ASIA LIMITED BANK by using the day light in our E-Statement, SMS Banking, Corporate Ofce. Our electronic 47 mail system has been operational Direct Energy Consumption by Bank Asia since 2005, which is being Consumption Mega joules extensively used for internal as Electricity 7,159,980 kwh 25,775,928.00 well as external communication. Electronic communication Diesel 10,342 ltrs 372,312.00 substantially reduces paper Octane 71,318 ltrs 2,282,176.00 consumption thereby reduce CNG 177,478 m3 5,679,296.00 deforestation. Total 34,109,712.00 Energy Consumption Million Taka Energy Efciency Table Million Taka 2014 Cost of Cost of Green Energy Type Total Sl. Instruments Quantity Conventional Banking Electricity 66.80 Practice Concept Fuel & CNG 10.23 1 E-Statement 245,700 2.46 - 2 SMS Banking 286,110 2.86 0.07 Solar powered branches 3 SMS Alert 522,720 5.23 0.13 We have installed solar panels in our 11 branches located at 4 Net Banking 116,530 1.16 - Patherhat, Madhobdi , Dohajari, 5 E- Fund Transfer 60,070 0.60 - Hajigonj, Faridpur, Elephant 6 Digital Attendance 730 0.01 - Road, Lalmatia, Sonaimuri, 7 E -Mail corresponding 175,840 1.76 - Bashabo SME service Centre, Bank Asia Bhaban & Nimtola 8 Total 1,407,700 14.07 0.20 Branch. Net savings Tk. 13.87 million Traditional Brick Kiln

SOLAR HOME electrical lights popularly known equipment, obsolete furniture & as Compact Fluorescent Lamp fxture and newspapers. Being a SYSTEMS (CFL). Moreover, the Bank fnancial institution Bank Asia Bank Asia is committed to disbursed Tk. 295.76 million to does not deal with any hazardous enlighten every rural home with Nasir Energy Savings Lamp Ind. waste. green electricity. At present, Ltd. only about 40% of the rural Both sides of papers are used households in Bangladesh have WATER USAGES and wasted papers are collected access to grid electricity. For Bank Asia is very much using bins after shredding the rest of the areas are not conscious about efcient use of Donate old equipment and connected to the national grid, water. As a fnancial institution furniture for charity or sold life comes to almost a standstill its use of water is already Food wastes are collected by there after sun-set. Giving very much restricted. Major community cleaners on daily priority in this sector, Bank Asia consumption of water is for basis has been supporting to import BANK ASIA LIMITED BANK drinking purpose. Our bank is Toner, cartridges and and install solar home systems 48 also non compromising about newspapers disposed of through in the of grid area. During the ensuring pure and safe drinking community cleaners. year 2014, we have disbursed water for its employees and Tk. 0.04 million to 3 borrowers visitors. But normal supply water To reduce environmental for installation of Solar Home in Bangladesh is not safe for pollution and operating costs as Systems. drinking. Therefore, to overcome well as to achieve more efective the situation every branches compliance with legislation, Bank ENERGY EFFICIENT- and corporate ofce are supplied Asia fnanced for installation of with specially procured fltered Efuent Treatment Plant (ETP). COMPACT mineral water. The management In 2014, the Bank fnanced Tk.15 FLUORESCENT LAMP of the bank takes special care million for installation of Efuent (CFL) so that wastage of water is Treatment Plant that will help minimum. Total consumption to reduce discharge of untreated As a part of our green banking is controlled by monitoring per factory waste water into the activities, Bank Asia fnanced employee drinking water cost per rivers. Energy Saving Lamp Industry. month. During 2014, Bank Asia Energy Saving Lamp will reduce spent Tk. 157.97 per employee emission of CO by replacing GREENHOUSE GAS 2 per month for safe drinking incandescent light which EMISSION water. consumes 4 to 5 times more Saving CO2 emission energy for same lumen. Each WASTE During 2014, Bank Asia Energy Saving Lamp prevents implemented Video Conferencing production of 100 kg of CO2 , a MANAGEMENT System to connect with remote relief of global warming and air The process involved in dealing branches for strengthening pollution. Bank Asia fnanced with the waste generated by day relationship between Corporate Tk. 75 million to BD Thai to day banking activities, food Ofce and branches. By using the Cosmo Ltd. which intends to consumption, physical wear system, Management can save manufacture and assemble & tear of computer and ofce time and money as well as CO e diferent types of power saving 2 Zigzag chimney of Brick Kiln by avoiding long distance travel in order to attend meetings. Currently, the system has been implemented in few branches. The bank has a plan to cover all the branches under the system within 2015. Bricks Bank Asia also published an produced at advertisement in the Daily HHK (Eeta Star on the occasion of World & Tiles) Environment Day and granted projects to set up Zigzag chimney programs will allow the bank Tk. 115,000 for building in 2014 through Chatkhil, to increase the volume and awareness of the people. Sirajdikhan, Tarail, Gazipur, value of trade transactions with Kamalbazar and Mohadevpur enhanced tenors and access to ASIA LIMITED BANK REDUCING CARBON branch. competitive pricing terms and in 49 FOOTPRINT other way will enhance the global Since inception Bank Asia has INITIATIVE TO marketability of the Bank to the turned to eco-friendly banking as REDUCE THE BANK’S international confrming banks. a way to lower carbon footprint Generally perceived in its’ normal banking activities. ADVERSE IMPACT ON negative covenants As part of our commitment for ENVIRONMENT Production or trade in any our green economy we have Bank Asia in principle always product or activity deemed signed a participation agreement averts fnancing in environment illegal under host country laws with Bangladesh Bank under hazardous business. The bank or regulations or international refnance scheme on August 10, has decided not to fnance conventions and agreements, 2011 for lending in solar energy, any tobacco related business, or subject to international bio- gas, and efuent treatment and all ofces of the bank are bans, such as pharmaceuticals, plant & brick feld using declared smoking free zone. We pesticides/herbicides, ozone environment friendly technology incorporated environmental and depleting substances, PCB’s, like Hybrid Hofman Kiln (HHK), climate change risk as part of the wildlife or products regulated Tunnel Kiln etc. technology. existing credit risk methodology under CITES Bank Asia fnanced Tk. 410.01 prescribed to assess borrowers Production or trade in weapons million to Eeta & Tiles Ltd. and through Environmental Due and ammunitions Tk. 147.31 million to H. Auto Diligence (EDD) checklists. Production or trade in Bricks & Ceramics Ltd. for their alcoholic beverages (excluding brick manufacturing businesses Bank Asia has been approved beer and wine) involved with energy efcient USD 40 million for Global Trade HHK/Tunnel Kiln technology. Finance Program (GTFP) For better energy efciency Guarantee facility & USD 30 and lower emissions, Bank Asia million for Short Term Finance fnanced Tk. 44.50 million in 8 (STF) facility by International Finance Corporation (IFC). The ATM

Mr. Md. Mehmood Husain, President & Managing Director of Bank Asia and Ms. Inessa Tolokonnikova, Manager of Financial Institutions Group, IFC, BANK ASIA LIMITED BANK South Asia are 50 exchanging facilities agreement

Production or trade in Tobacco BANK ASIA AND which shows bank’s eforts Production or trade in towards supporting green radioactive materials GREEN BANKING banking activities. Our Green Production or trade in Since inception, Bank Asia has Banking Policy Guidelines and unbounded asbestos fbers. been committed towards safe, Green Ofce Guide have been This does not apply to clean and green environment circulated to all our employees purchase and use of bonded which is essential for our for creating awareness on Green asbestos cement sheeting survival. As a Bank, we play Banking activities & providing where the asbestos content an intermediary role between instructions about conserving is less than twenty percent economic development and energy, water, saving paper, etc. (20%) conservation of the environment. Bank Asia participated in “Green Drift net fshing in the marine Our Green Banking activities are Bankers Conference 2014” and environment using nets in on multidimensional areas which “Green Finance Conference excess of 2.5 km. in length include both in-house Green 2014” organized by Bangladesh Commercial logging operations activities and external green Bank.Bank Asia developed its for use in primary tropical activities towards supporting own Environmental Policies moist forest Green Economy. and unifed our sustainable Production or trade in wood operations under the “Green or other forestry products The Bank’s working environment Banking Unit” equipped other than from sustainably encourages usage of e-mails, with permanent employees managed forest relying on online instructions and reviewing by the Audit for communication, extensive Committee of the Board. usage of energy savings bulbs Maximum use of daylight in the branches of the Bank

As greening of mind, this year Most Impressive Report 2013 In our banking system recently Bank Asia has provided four by NCSR (National Centre ‘e-Commerce’ has incorporated training on Green Banking under for Sustainability Reporting) for its valued customer where Foundation training course Jakarta, Indonesia. account holders can shop online where 72 stafs participated. through internet banking, Debit During 2014 total 49 programs Online Banking Card or Credit Card with less have been arranged by diferent Bank Asia has been one of the expense & in faster time from departments regarding pioneers in introducing Online any time anywhere. Through capacity building & awareness Banking and in 2014, it covers SSL, A/C holders of Bank Asia development program on 91 branches, 6 SME centers, 97 can purchase products & services “Green Banking”. In addition, own ATMs, more than 5,000+ from 175+ Merchant websites. 4 external trainings were shared ATMs and others. Clients organized related to Green can also have access to their Others Banking & Environmental Risk accounts through Internet & Bank Asia spent Tk. 104

Management, Reporting Format Mobile Banking (Hello) via million on diferent social ASIA LIMITED BANK project including message on of Green Banking Activities, Smartphone’s which can be used 51 Financial inclusion, CSR & Green for internet based applications International Mother Language Banking. for transactions. Online banking Day, Bangabondhu Sheikh system is a great way to reduce Mujibur Rahman Memorial In view of highlighting our wastage of paper. Trust, diferent socio-cultural Green Banking activities and and religious program during the creating awareness amongst Bank Asia has implemented most year 2014. our stakeholders, our “Half advanced solution in receiving Yearly Financial Position, 2014” WASA, DESCO bill payment and Compliance During 2014, Bank Asia has not incorporates Green Banking Passport fee collection systems faced any penalties for non- activities and a number of through online system which compliance with applicable laws articles on Green Banking, enables payment in a smooth and and regulations concerning the sustainability reporting hassle free manner. were published in diferent impacts of its operations on newspapers. communities.

Bank Asia has introduced Thin Green House Gas Emission Table Client / Virtual Desktop (required Source Consumption Co Emission only 24W power) in few branches 2 Electricity 7,159,980 kwh 6,229.18 tons at Teller area dramatically reduce power consumption, Diesel 10,342 ltrs 27.92 tons Carbon emissions and space Octane 41,318 ltrs 96.68 tons consumption as well as reduces CNG 177,478 m3 367.21 tons electronic garbage signifcantly. Air Travel 2,762,030 km 237.30 tons Road Travel 4,143,044 km 236.15 tons Like the previous year, Bank Asia Paper 28,574 reams 92.49 tons has published ‘Sustainability Source Report 2013’ and awarded for www.carbonneutral.com.au/carbon-calculator.html www.eecabusiness.govt.nz/wood-energy-sources/co2-emission-calculator Economic performance

BANK ASIA’S VALUE Value Added Statements ADDITION DURING Million Taka 2014 Items 2014 2013 Value added statement shows Income from banking services 20,386 19,672 how much value (wealth) has Less: Cost of services & supplies (12,331) (12,415) been created by the bank through Value added by banking service 8,055 7,257 utilization of its capacity, capital, manpower and other resources Non-banking income and how it is allocated among Provision for loans & Of-balance sheet (1,562) (1,895) diferent stakeholders like exposure & others employees, shareholders, Total 6,493 5,362 government etc.

BANK ASIA LIMITED BANK In the year 2014, bank’s net value Year addition was Tk. 6,493 million; 52 Distribution of value addition 2014 2013 28% distributed to employees as salaries, 31% to shareholders Amount % Amount % as dividend & reserve, 30% to To employees as salaries 1,836 28% 1,462 27% government as income tax and To providers of capital as 1,988 31% 1,398 26% rest of the amount used for dividend & reserve business expansion and growth. To Government as income tax 1,947 30% 2,042 38% To expansion & growth value Retained proft 231 4% 62 1% added statements Depreciation 441 7% 379 7% 2014 Defered Taxation 51 1% 19 0% 723 460 4% 7% Total 6,493 100% 5,362 100% 1%

28% 1% value added 30% 7% statements 31% 2013 38% 27% To employees as salaries To providers of capital as dividend & reserve To Government as income tax To employees as salaries 26% Retained profit To providers of capital as dividend & reserve Depreciation To Government as income tax Deferred Taxation Retained profit Depreciation Deferred Taxation ECONOMIC VALUE Economic Value Added Statement ADDITION DURING Million Taka Year THE YEAR Particulars Economic value added (EVA) 2014 2013 2012 indicates the true economic proft of the company. EVA is an Invested fund by shareholders estimate of the amount by which Shareholders’ equity 16,864.42 14,617.70 earnings exceed or fall short of 13,045.17 required minimum return for Add: Cumulative Provision shareholders at comparable for loans/ investment/ of- 6,280.52 5,100.99 4,392.28 risks. Shareholders/ Equity balance sheet items, ofshore providers are always conscious banking units & others about their return on capital Total invested fund by 23,144.94 19,718.69 17,437.45 invested. As a commercial shareholders ASIA LIMITED BANK banking company we are deeply Average invested fund by the 53 concerned about delivery of value 21,431.82 18,578.07 16,151.03 to all of our shareholders/ equity shareholders [A] providers. Earnings for the year Economic Proft after taxation 2,218.69 1,459.82 907.99 Value Add: Provision for loans/ added investment, of-balance sheet 1,561.88 1,895.17 2,328.81 Million Taka items and Ofshore banking units Less: written of during the 471.38 1,341.14 455.83 year 519.83 Earnings for the year [B] 3,309.19 2,013.85 2,780.97

308.74 Average cost of equity (based on Shanchay Patra rate issued by the Government 14% 14% 14% 2013 of Bangladesh) plus 2% risk premium [C] 2014 2012 Cost of average equity [D= A 3,000.45 2,600.93 2,261.14 x C] Economic Value Added 308.74 (587.08) 519.83 [B-D] -587.08 MARKET VALUE Market Value Added Statement 2014 No. of shares Share price (Taka in ADDITION DURING Particulars THE YEAR (in million) (in Taka) million) Market value 763.00 16.70 12,742.10 Market value added statement shows the diference between Book value 763.00 22.10 16,864.42 the market value of the bank Market Value Added (4,122.32 ) and the capital contributed by shareholders i.e. book value of equity. During the year 2014, CONTRIBUTION laws of the country. Besides, total market value of the bank TO NATIONAL the bank deducts income tax, was Tk. 12,742.10 million and VAT and excise duty at source total book value of equity is Tk. EXCHEQUER from customers and suppliers 16,864.42 million i.e. addition of Bank Asia has contributed and deposits the same to the market value was Tk. (4,122.32) signifcantly to the government’s national exchequer. During the BANK ASIA LIMITED BANK million. efort of revenue collection. As year 2014, the bank contributed 54 a corporate entity, the bank Tk. 3,487.89 million to national market pays tax and VAT on its own exchequer. value added Million Taka income according to prevailing Contribution To National Exchequer Million Taka 16,864 15,954 14,618

12,742 Year Particulars 2014 2013 1,336 (4,122) Income tax payment on bank’s earnings 1,497.00 2,206.97 2014 2013 Income tax, VAT, and Excise duty 1,932.67 1,982.34 Total Book Value of Equity deducted at source from various Market Value Added payment and services by the bank Total Market Value of Equity Income tax payment by the employees 58.22 57.73 Total Payment 3,487.89 4,247.04

SUPPORTING SHIPBUILDING BY BANK ASIA Bangladesh has been emerged as a new global destination for oceangoing shipbuilding industry A 160 TEU container vessel and local shipbuilders eye to bag being built at its one percent of the global market shipyard for a for small ships that sizes about local enterprise USD 400 billion. And it is our created productive new of-farm employment during 2014 Bank Asia disbursed SME loan of Tk. 20,514.20 million.

We continue to support the promising small entrepreneurs Bank Asia’s till last year through SME participation and micro fnancing and other in the SME sophisticated products and Banking match making Fair services tailored to their specifc 2014 needs, impacting the lives of mass people. pride that Bank Asia has got ties signed with JSW Group for 10 with Western Marine Shipyard bulk carriers worth USD 62.15 ASIA LIMITED BANK Ltd. (WMShL), the country’s million prompting it considerably EMPOWER 55 premier shipbuilder, since 2005. be the highest worth contract ever signed with an Indian COMMUNITIES Apart from continued support venture. THROUGH to Western Marine Shipyard AGRICULTURE/ Ltd., the premier and leading RURAL CREDIT shipbuilder of the country, SUPPORTING THE Bank Asia has disbursed through regular credit facility ENTREPRENEURS Tk. 2,416.69 million of Tk.1,090.00 million and (Tk. 755.46 million through specifc fnance of Tk.1,700.69 THROUGH SME own network and Tk. 1,661.23 million against contracts with SERVICE CENTERS million our NGO Network) as JGH Marine A/S, Denmark and A key agenda of our fair banking short and long-term credit in Chittagong Dry Dock Ltd., the is reaching more people with a agricultural/rural sectors during Bank has recently fnanced wider array of fnancial solutions. 2014. This fnancing helped to the contract with JSW Jaigarh Our commitment in providing create enormous employment Port Ltd. [an enterprise of JSW fnancial service to any viable opportunities in farms, especially Group that is a part of O.P. Jindal business of any size or nature in the felds of crops & fsheries. Group], India for construction of drives us in fourishing in Total number of benefciaries was two RSV Type IV Bulk Carriers Corporate, Agro/SME fnancing 85,317. with contract price of USD 12.43 etc. Our SME banking service million equivalent to Tk. 969.54 is playing a key role in making We introduced 4 fully agricultural million. The Bank is eyeing to sure that our service reaches branches to widen the access render more support for the to all stratum of society. With to fnance and assist our agro country’s shipbuilding in the 6 SME Service Centers & 91 community with the most near future as Western Marine branches in urban & rural areas specialized and innovative Shipyard Ltd. is set to build 6 Bank Asia provides its services banking solution available. bulk carriers in a row of two in for promoting and expansion the frst phase out of the contract of businesses which ultimately EBEK Projects

Cultivated potato fnanced by Bank Asia

FINANCIAL EBEK Services at a Glance BANK ASIA LIMITED BANK INCLUSION IN 56 Particulars 2014 2013 ECONOMICALLY DISADVANTAGED Districts 35 32 AREAS Upazila 252 231 Union 2,424 2,251 EBEK (Ektee Bari Ektee Khamar) Villages 21,816 20,259 Bank Asia is the leading Bank of No of Agents 448 347 implementing Ektee Bari Ektee No of Samitees 21,816 20,243 Khamar (EBEK) a government Total Benefciary enrolled 1,055,579 601,352 project for the ultra-poor people Total Transactions (Tk.in million ) 14.50 0.22 of Bangladesh focusing poverty eradication and reducing poverty Government Grant Disbursement (Tk. in 2,352 882.46 level up to 10% within 2021. million) Bank Asia started Ektee Bari Number of Loan Disbursement 600,000 93,127 Ektee Khamar in June 2012. Total Deposit (Tk. in million ) 5,216.00 2,034.74 With online banking services through this EBEK project to unbanked people with good reputation in Bangladesh. Bank Asia is now operating EBEK Banking services in 35 districts having 252 upazillas and serving more than 1,055,579 benefciaries under this project. Bank Asia fnanced project through EBEK Agent Banking Booth

AGENT BANKING MOBILE FINANCIAL expansion and incorporation of Bangladesh Bank decided to SERVICES ‘HELLO’ major Telecom Service providers promote the poor segment of the resulting tapping of more Ofering a range of new and customers, we aim to leverage society with fnancial services unique services, Bank Asia especially geographically these advantages to increase the Limited has launched Mobile revenue generation. dispersed locations. Bank Asia Financial Services ‘Hello’, on has also taken initiative to May 17,2014 with a view to With distributors and agents implement Agent Banking in all carry on the global commitment districts of Bangladesh. Bank covering the whole country, towards fnancial inclusion and coupled with vast branch Asia has implemented 49 Agent access. outlets in 17 Districts. Within network ofering the service, the Bank serves 1, 87,621 customers short time the deposits amount of Hello started with ofering basic the transaction become through 12,677 agents of 80 MFS features: Cash In, Cash distributors in 2014. Tk. 342.61 million. Within Out, Fund Transfer and Mobile the aim of agent banking ASIA LIMITED BANK Airtime Recharge along with The bank is also preparing implementation, 64 districts, innovative ones as well like 57 485 upazilas, 4,146 unions and ‘Hello’ as the launch pad for inclusion of micro life insurance, rolling out some of our Unique 68,000 villages where 6 million micro saving products, foreign account holders will avail their Selling Products (USPs) so that remittance disbursement, customers have options to avail banking services in 5,000 agent utility bills payment, corporate points by 2015. those services using alternative salary payment, passport fees channel other than core banking. collection and others. With Once these services are launched, increasing service coverage they are expected to boost up A Rouf Chowdhury, through distribution network Chairman of Bank both the transaction and revenue Asia Ltd. launches the volume of ‘Hello’ eventually bank’s Agent Banking grabbing substantial MFS market outlet at Sholla Bazar, share. Nawabganj FOREIGN REMITTANCE Total infow of Inward Remittance of Bank Asia in 2013 was USD 536 million (Tk. 41,732.50 million), a 21.82% growth over the previous year. Bank Asia’s position is 8th in 2014 in comparison with 9th in 2013 among all banks in Bangladesh. First ever in Bangladesh history, Bank Asia started to disburse would give a strong competitive those less fortunate, to create remittance from retails shop edge to Bank Asia over the other brighter economic futures for like Singer (Bangladesh) players in the market by catering them. During 2014, Bank Asia Limited on May 14, 2014 the banking need of an emerging disbursed SME loan of initially from its nationwide 370 sector. Tk. 20,514.20 million. locations. In addition we have COMMUNITY launched Foreign Remittance Financial assistance from software “e-Remit” in 2014 for INVESTMENT the departmental automated STRATEGY government Bank Asia does not receive operation. Gradually, we have Indirect economic impacts included all branches Direct any fnancial assistance from As one of the leading fnancial Account Credit, BEFTN and the government and also does services provider in Bangladesh, ELDORADO through e-Remit. not contribute to any political Bank Asia has an extensive role FRD has been successful in organization. But we support all in the economy and society. the public policy developed for BANK ASIA LIMITED BANK yearlong pursuit to introduce Bank Asia makes a positive for the frst time in Bangladesh the betterment of nation and diference to society and local, 58 D2B (Direct-to-Bank Account) we never lobby for making any regional and national economies Western Union Account Credit policy in favor of us. where we operate through our Service. Under this arrangement, community initiatives and WU have agreed to route Community investment investments. We help foster Account Credit Payments from One of the major strategic local economic development and all over the world to all banks in focuses of Bank Asia to attain stimulate growth and innovation Bangladesh through Bank Asia. sustainability is giving back to through loans, credit and other Bank Asia is the frst and only the community where it operates fnancing to organizations of Bank to set-up arrangement through donations under its all sizes. In particular, Bank with OPGSPs (Online Payment corporate social responsibility Asia is a major supporter of Gateway Services) in Bangladesh (CSR) programs. Bank Asia’s SMEs across Bangladesh and like ‘Payza’ and ‘Payoneer’. It CSR expenditures (donations) invests in community programs, have consistently grown in last which enable youth and couple of years. In the year 2014 its CSR expenditures were Tk. 239.84 million, which was 80% higher than previous year. All the donations made under CSR program had noble social cause. Bank’s stakeholders were immensely beneftted by way of its community based Launching social programs; education of payment support health support, disaster through retail management, environment, outlets of Singer patronizing sports, art & culture (Bangladesh) Limited and others. grievance

Community Investment handling

4.65% 2.17% 0.05% policy 6.73% 5.61% 43.12% With a view to resolve undesirable issues at the workplace in the most efective manner Bank Asia has formally promulgated 37.67% Grievance Handling Policy in 2014. The policy equally applies to all permanent and contractual employees for grievances related to promotions, transfer and posting, Education 5.61% | Tk. 13.44 million compensation package, incentive bonus, BANK ASIA LIMITED BANK Health 37.67% | Tk. 90.28 million working environment etc. Under this policy Disaster Management 4.65% | Tk 11.14 million 59 Environment 0.05% | Tk. 0.16 million complaints are resolved informally where Sports 2.17% | Tk. 5.20 million possible, and through a formal grievance Arts & Culture 6.73% |Tk. 16.12 million procedure where necessary. Others 43.12% | Tk. 103.54 million

COMPLIANCE Bank Asia is very much conscious about legal and female anti regulatory compliances. The bank reports regularly to the central bank, the Bangladesh Securities harassment and Exchange Commission, tax & VAT authorities on required compliance issues. During 2014, policy the bank has not faced any signifcant penalties for non- Bank Asia follows a zero tolerance approach compliance with applicable laws to harassment of any kind to any female and regulations for running employees as the Bank feels harassment its economic activities in seriously weakens the working atmosphere. Bangladesh. The policy guides about personal measures of afected female employees in addressing a complaint, role of management, investigation procedures and disciplinary measures. The policy also guides management about its role in case of false complaint. MINIMUM NOTICE PERIOD REGARDING OPERATIONAL CHANGES Sustainable HR Minimum notice period before switching job is 3 months for regular employees and 1 month development for contractual employees. Minimum notice period before changing department is 1-30 Fringe beneft schemes days as per situation or demand EMPLOYEE PROFILE of concern branch/department. We strive to make Bank Asia House rent allowance a great workplace to work by Conveyance allowance creating a performance driven Medical allowance TOTAL EMPLOYEE culture that rewards success Entertainment allowance Out of total 1,773 employees, and encourages employees to House maintenance allowance 440 employees are female and take control of their personal Utilities allowance rest 1,333 employees are male. development. Through the Car maintenance allowance As such, a profound commitment process of learning and to balanced gender mix of rewarding we intent to enable Other beneft schemes employees is refected in the individuals to think, behave, Group health insurance Bank’s employment policy and take actions and make decision Benevolent service rules. All employees independently. Leave fare assistance are permanent in nature. But Furniture allowance support stafs like messengers, BANK ASIA LIMITED BANK House building loan (HBL) cleaners, security guards are 60 SALARY POLICY Car loan recruited through outsourcing. We target a fair human resources Provident fund loan Besides this, some specifc management by using a Mobile phone allowance (talk departments like Alternative performance based system. Our time) Delivery Channel (ADC), salary policy is the same in all Mobile handset allowance Consumer Finance, Cards, SME, branches and service points for Ex-gratia payment Islamic window employ ARO the beginner level. In addition, (Assistant Relationship Ofcer) to drive further development End service beneft plans who can be treated as contractual of individual skill sets and Bank Asia provides the following employee and the number was competencies, speaking foreign beneft plans to its employees 317 in 2014. Bank’s employees languages is compensated. There on severance or retirement are mainly concentrated on is no incident of discrimination according to individuals’ branches in terms of number has been occurred in terms of entitlement and in 2014 total employees’ remuneration provided to male composition in branch and and female employees. Provident fund corporate ofce was 74% and Gratuity 26% respectively. BENEFITS TO Superannuation Leave encashment EMPLOYEES Every employee is paid salary on monthly basis, which is a combination of basic salary, fringe benefts and other benefts Total employee distribution disbursed on 25th of each month Ofces 2014 2013 or previous working day if 25th is holiday. Bank Asia’s beneft Corporate ofce 466 26.28% 434 27.12% schemes are as follows: Branches 1,307 73.72% 1166 72.88% NEW EMPLOYEE New employee distribution 262 new employees were Ofces 2014 2013 recruited during 2014, among which 74% for branches as a part Corporate ofce 69 26.34% 54 25.71% of network expansion of the bank Branches 193 73.66% 156 74.29% and remaining 26% for corporate ofce to ensure efective and timely support to branches. Employee distribution by diversity Ofces 2014 2013 EMPLOYEES BY Local 1,767 1,595 DIVERSITY Indigenous 6 5 Bank Asia ensures equal

opportunity as an employer ASIA LIMITED BANK irrespective of locality, gender 61 or ethnicity. Local employees Employee distribution by region (99.66%) dominated in diversity Region 2014 2013 composition. Dhaka 1,269 1,144 Chittagong 335 299 EMPLOYEES BY Sylhet 68 66 REGION Rajshahi 43 39 Bank’s employees are mainly Barisal 7 8 spread over to Dhaka and Khulna 45 38 Chittagong. It retains the highest Rangpur 6 6 number of employees in Dhaka, which was 86.15% in 2014 for corporate ofce and branches in Dhaka city. Gender positioning of directors 2014 2013 GENDER Board Level Male Female Male Female POSITIONING Directors 10 5 9 5 Bank Asia has been maintaining No minority group membership in the Board a very balanced male and All the directors are local, no indigenous individual sits in the Board female ratio, which was not only refected in the board of directors Gender positioning of employees but also in the bank management Management 2014 2013 at diferent levels. Among our Tier Male Female Male Female female colleagues 1 is in top level Top Level 33 1 30 1 management, 15 in mid level and Mid-Level 245 15 206 13 424 in low level management. Low Level 1,055 424 940 410 Human capital distribution

New Total Employee Employee Distribution Distribution

1307 193 1166 156

BANK ASIA LIMITED BANK 59 466 434 54 62

2014 2013 2014 2013 Branches Corporate Office Branches Corporate Office

Senior Vice President to President Top 6 Layers : 31 295 First Assistant Vice President to Vice President ExecutiveMid Level 4 Layers :219 claims of Insurance Officer to Trainee Officer to Sr. Executive Officer Junior Officer received of 4 Layers : 692 4 Layers : 658 Tk. 19.07 million in Low Level 2014

Non Executive

Roof top of Bank Asia, Corporate Ofce Age 111 Distribution female employees 1.80% availing pick and 11.56% drop facilities 0.23% among 320 nonexecutive female employees in 32.77% Dhaka region 53.64% Exe cutiv e|2 94 |1 6 .5 8 %

20-30 31-40 Employee 41-50 by 51-60 Position 61+ N

o n e x e c ASIA LIMITED BANK u ti ve |1 Regional 63 47 9|83.42% Distribution of Employees

43 F 68 em 7 a 45 le 2 6 5 %

335

Gender Positioning 1269

M a le 7 5% Dhaka Chittagong Sylhet Rajshahi Barisal Khulna Rangpur Male employees are dominating Gender positioning by position executive level which is around 2014 2013 95%. Comparatively female Position employees mainly belong to Male Female Male Female nonexecutive level and holds Executive 278 16 236 14 29%. 86 % of staf members Non-Executive 1,055 424 940 410 are aged below 40 years which signifes that Bank Asia is in young, dynamic and capable Gender positioning by employment level hands. 2014 2013 Employment Level Male Female Male Female Parmanent 1,333 440 1,176 424 AGE DISTRIBUTION Age distribution of employees BANK ASIA LIMITED BANK As mentioned in page 22, Board Age Group Male Female Total 64 of Director’s plays key roles in 30 & Below 417 164 581 corporate governance of the 31-40 692 259 951 bank, i.e, Board is the highest 41-50 190 15 205 governance body. 51-60 30 2 32 61+ 4 0 4 Total 1,333 440 1,773 Percentage 75% 25% 100% EMPLOYEE TURNOVER RATE BY Turnover rate of employees by gender GENDER 2014 2013 Male and female employees Gender turnover rate is almost equal No. % No. % in terms of percentage. Overall Male 47 3.53% 64 3.78% employee turnover rate is very Female 14 3.18% 26 1.53% low in the Bank which is around 3.44% of total employees in 2014. EMPLOYEE Turnover rate of employees by region TURNOVER RATE BY Region 2014 2013 Dhaka 45 67 REGION Chittagong 12 16 As per demographic scenario, Sylhet 0 3 employees of Dhaka city left the Rajshahi 0 0 Bank in 2014 which was 74% of Barisal 0 0 total employees left. Khulna 2 4 Rangpur 2 0 PERFORMANCE PARENTAL LEAVE LEARNING & Return to work after parental MANAGEMENT leave is 100% for both male and DEVELOPMENT Knowledge & skill development SYSTEM female. is a continuous process and to Bank Asia is solely depending on keep our employees abreast of the contribution of its existing Maternity leave talents. From the year 2013, all the latest developments in Bank Asia introduced a real- As per bank’s policy, any the banking sector, the bank life SMART KPI to evaluate the employee who has been in the continues to organize training contribution of all individuals in continuous service of the bank for & workshop to the ofcers & a transparent manner to assess at least one year is entitled to get executives in an efort to improve quantitative and/or qualitative 6 months maternity leave with their professional efciency. The performance vis-à-vis set target regular salary and allowances. bank always lays the highest of a given year. We have infused An employee can avail this leave importance on training of its more than two occasions during employees as a continuous

80/20 strategy in performance ASIA LIMITED BANK measurement system; as the entire period of service. The process of human resources such 80% Objective and 20% employee’s annual KPIs (Key development. 65 Organizational & Personnel Performance Indicators) and behavior factors are introduced. thereby increment, promotion Bank Asia is maintaining its The benefts of using KPI are the are not afected for this long term own training institute which is followings: leave. equipped with all modern study aid and course materials. Reduce the number of Maternity leave availing decisions and make decisions based on objectivity and facts. in 2014 Quantify the achievement of No. of female Average leave goals. employees at a stretch Focus on facts and see where 40 7 Months individual improvement is/are

needed. As individual initiative grows, Paternal leave it becomes more difcult As per bank’s policy, any to remain as close to the employee who has been in the 52,584 operational details as it is, continuous service of the bank in such case, KPI results can for at least one year is entitled man hours of bring back to reality. to get 5 working days paternal training for Employees are clear about leave. An employee can avail this his/her obligations to leave more than two occasions human capital deliver during the year and during the entire period of development accordingly would be able to service. In 2014, every entitled plan to meet the expectation. employee has availed paternal Last but not least, unbiased leave facility. performance evaluation at the end of the year. Human capital 40 Female employees Bank Asia has always been very availed 8,400 vibrant about human capital days maternity management and cautious to set up leave during HR applications and best practices 2014 for developing employee talent and leveraging employee skills in the organization. Bank Asia signifcantly considers human resources management at corporate level, professional level, social level and overall national level. In this process Bank Asia tries to identify and report investment made in human resources. staﬀ strength BANK ASIA LIMITED BANK 2014 294 1,479 66 The total value of Human Capital has been ascertained Tk. 12,031 2013 250 1,350 million in the year 2014 and Tk. 2012 216 1,269 10,205 million in 2013 in present 2011 202 1,068 value of future earning model (Lev 2010 169 1,068 & Schawrtz) by discounting total benefts payable to employees, which was considered minimum expected earnings from them up to retirement.

Category wise break down is presented in the table below: Million Taka 2014 2013 Category No. of Per Capita No. of Per Capita Total Total Value Employee Value Employee Value Value Executive 294 12.89 3,791 250 12.71 3,177 Ofcers 1,479 5.56 8,227 1,350 5.20 7,018 Total 1,773 12,018 1,600 10,195

Golden fbre of Bangladesh and traditional method of jute processing Balance Sheet Including Human Capital abridged for banking operation

Million Taka BANK ASIA LIMITED BANK 31-Dec-14 31-Dec-13 67 Assets Cash 10,951 9,709 Balance with other banks 743 1,363 Money at call & short notice 300 - Investment 38,683 33,933 Loans & Advances 116,809 104,911 As per model we have Fixed Assets 5,214 5,288 capitalized the total value Human Assets of employees as Human Individuals' value 12,018 10,195 Capital. 17.89% growth in the value of human capital Value of investments 13 9 in 2014 over 2013 was Other assets 10,031 8,573 due to net addition of 173 Total Assets 194,762 173,983 head counts of experienced and fresh recruitments Capital & Liabilities that was required for the expansion of the business Borrowing 7,846 1,945 and for ensuring the better Subordinate bond 449 600 quality of the service and Deposits 140,869 133,489 customer satisfaction. In this Shareholders' equity 16,864 14,618 process Bank Asia increased 12,031 10,205 its year to year training Human Capital expenditure to excel employee Other liabilities 16,702 13,126 performance. Total Capital & Liabilities 194,762 173,983 Training by gender Credit ,UCP - 600 & ISBP-17 BEFTN, Policy, Guidelines & 2014 2013 Gender Operation-5 Persons Hours Persons Hours Treasury operation & Fund Male 2,231 39,766 1,354 24,538 Management in Banks-5 Female 712 12,818 389 7,685 Customer Service Intelligence -4 Islamic Banking-7 Green Banking- 6 Training by position Managerial Competence & 2014 2013 Leadership Development-4 Position Persons Hours Persons Hours Integrated Supervision System-3 Executive 518 8,914 340 3,887 Corporate Governance &Internal Control & Non- Executive 2,425 43,670 1,403 28,336 Compliance-3 BANK ASIA LIMITED BANK Training by diferent institutes 68 SUSTAINABILITY Year 2014 Particulars TRAINING Persons Hours As greening of mind, this year In House Training 2,611 46,520 Bank Asia has provided a number of training on Green Bangladesh Bank 70 840 Banking under Foundation BIBM 55 1,104 training course in its’ training Overseas / Foreign Training 17 496 institute. A total of 134 stafs Training by other institute 190 3,624 participated in this training program. During 2014 total 49 Total 2,943 52,584 programs have been arranged by diferent departments. Among Bank has organized 4 (four) augmented. Considering this foundation training courses the bank has arranged 52,584

each 3 weeks long for entry level man hours of local and foreign employees to improve knowledge training in 2014. Some of the t

base and profciency in banking. major trainings are referred t

t below:

y Assessmen Design & ent &

Prevention of Money elopmen

LEARNING VALUE er m Laundering and Combating Assessmen ce

Dev

CHAIN Needs Learning Deliv Reinfor Financing on Terrorism- 15 nos. Needs Business ansfer of Learning LVC is a value creation Tr Foundation Training- 4 Results & t framework for learning and Measuremen OCAS, Credit & Credit Learning Value Chain knowledge enhancement as Risk Management & loan strategic levers. Documentation-14 Bank Asia believes that without Foreign Exchange & Foreign proper training the value of Trade including Documentary human capital can never be all the knowledge development As per Bangladesh Bank policy OCCUPATIONAL initiatives the followings are on green banking, banks signifcant: are to publish independent HEALTH, SAFETY sustainability report as per GRI AND ENVIRONMENT For highlighting Green format under the third phase. Board and management of Banking activities and Bank Asia strongly believe creating awareness amongst Mr. Imran Ahmed, FCA, CISA who safe & healthy work place is a the stakeholders, our “Half is also a Certifed Sustainability precondition for sound mentality Yearly Financial Position, Reporting Specialist had been of employees to deliver desired 2014” incorporates Green invited by Singapore Compact services to valued customers. So Banking activities which for CSR as one of the speakers at the bank is very careful about refect the major activities the 6th International Singapore ensuring modern, healthy & safe of Green Banking and the Compact CSR 2014 Summit workplace for its employees. key activities of Sustainable held on October 16-17, 2014 at All the branches, SME service Banking Operations.

Marina Bay Sands, Singapore. centers and SME/agriculture ASIA LIMITED BANK The Articles on Green The theme of the summit was branches and every department Banking, sustainability “CSR: For Sustainable Growth- of corporate ofce are well 69 reporting were published Balancing Proft, People & decorated having sufcient in diferent newspapers breathing spaces. A team of which refect our Green Planet”. Mr. Ahmed’s session was initiatives to our employees, on the second day of the summit logistics supports and services our stakeholders and where he spoke on measuring department of the bank is all subscribers of those and reporting of sustainability specially entrusted to visit newspapers. returns, drivers and roadblocks regularly to monitor cleanliness, One of our employees of of sustainability reporting and safety measures and other Bank Asia Ltd. attended a why business are still undecided amenities remains ensured in all GRI G4 Certifed Training on reporting. outlets. If found any deviation, on Sustainability Reporting take prompt steps and thus at Kuala Lumpur, Malaysia ensuring modern, healthy and from May 6-8, 2014 jointly safe workplace for its employees. organized by NCSR (National Center for Sustainability Reporting), Jakarta and SHEMSI (Safety, Health and Environmental Management Services International), Malaysia. Commitment to sustainability reporting development Speaker in the 6th International Singapore Compact CSR 2014 Summit in Singapore HUMAN RIGHTS, ANTI MONEY POLICY, PRACTICES, CHILD LABOR & LAUNDERING AND PROPORTION OTHER ISSUES TRAINING OF SPENDING ON Human Right issue is particularly Bank Asia is committed to SUPPLIERS relevant for organizations that preventing money laundering For running day to day operate in industries/regions and terrorist fnancing. We operations Bank Asia works where the protection of human recognize our obligations to with a wide range of suppliers rights is of signifcant concern. prevent the fnancial channels and maintains good relationship As this is a signifcant concern and products from being used by with them. We work to create for a business to be sustainable money launderers and terrorist value through collaboration with in long term, we integrated the organizations for illicit purposes. them and strive for fairness in all human right issue in all our Bank Asia is also against any interactions with suppliers. Our economic decisions. Including actions of soliciting, collecting chain of suppliers consists of the

BANK ASIA LIMITED BANK human right provision in all or provisioning funds that come following parties: kinds of investment agreements with the intention to support 70 is a part of our strategy to reduce terrorist acts or organizations. Construction Contractor the risks of investment. And also To create AML & CFT awareness, Graphics and interior we do not make any investment our employees have attended 12 designers agreements and contracts that AML training courses where 514 Advertisement agency violate human rights. Bank ofcials are attended. Newspaper Asia also does not tolerate child, Anti Money Laundering Printing maintenance forced or compulsory labor. Department (AMLD), Corporate Stationary suppliers In 2014, no incident of Ofce always arranges and Mineral water suppliers discrimination and violation conducts AML workshops to Transport facilitator involving rights of indigenous train all the employees of our ATM, hardware, software people and forced & child labor Bank and more than 96% of total service providers has been recorded. employees (Branch/Corporate Nursery Ofce) obtained AML & CFT Security agency related training. As a result, ofcials become aware and Selection of supplier is managed conscious regarding AML & CFT centrally by the corporate ofce. matters. The bank applies its own policy and practice for selecting these Anti corruption training suppliers. It mainly takes into Number of employees attended account the following criteria AML/CFT Training on AML/CFT training before selection: Training organized by Anti Money Laundering Department 1566 Status of compliance with including refresher training government rules and regulation by the suppliers. Training with Foundation course 619 Our bank doesn’t make any and other related courses collaboration with suppliers Bank Asia is against child, forced or compulsory labor

that employs child labor, GRIEVANCE creates environmental hazards, violates human HANDLING & rights etc. FEMALE ANTI HARASSMENT We fully maintain these criteria in case of selecting suppliers. POLICY Bank Asia is committed to Throughout the year 2014, Bank Asia has a number of provide a safe and harmonious, we received a few number of security service providers gender sensitive working requests regarding the grievance which specialize in all aspects environment for an employee, of human rights and female of building security. All free from unfair treatment, harassment related issues and security providers practice the discrimination, harassment, take necessary actions to solve highest standards of training confict and others. the matters immediately. and operation. Their training

incorporates all aspects of the ASIA LIMITED BANK law including human rights and non-discrimination. BRIEF ECONOMIC ENVIRONMENTAL AND 71 SOCIAL PERFORMANCE STATEMENT ON No of loans accounts +18% COMPLIANCE Economic In the year 2014, Bank Asia responsibility Deposit customer +13% has been able to comply with all account the regulations of Bangladesh Savings customer government regarding use account +15% of product and services, Electricity information about product consumed 7,159,980 kwh and services, marketing, Oil communications, advertising, 51,660 ltrs Environmental promotion. No incidents of fnes/ CNG responsibility 177,478 m3 penalties have been recorded Local business this year concerning the above travel 6,905,074 km mentioned issues. Our bank always maintained Paper used 27,574 reams the fundamental principle of Staf strength +10.81% business regarding protecting Social Benefts and customer privacy. Customer’s responsibility emoluments +25% information/ data is not available to anyone other than the client Proft after tax 2,219 million BDT himself and the Banks concerned Shareholder’s Shareholder’s personnel who is responsible for responsibility Fund 16,864 million BDT maintaining the data. We haven’t Share price received any complaints relating 16.70 BDT to breaches of customer privacy and losses of data in 2014. customer satisfaction survey

One of the top priorities of the Properly constructed customer CUSTOMER Bank is to ensure customer satisfaction surveys may provide service excellence by delivering the insights that are very much SERVICE QUALITY high quality service. Acquiring of essential for feeling the real ASSESSMENT new clients, doing more business pulse and set service strategies OBJECTIVE with existing clients, maintaining accordingly. In this regard, The aim of the assessment was to high client retention rate and Finance and Accounts Division investigate the quality of client lower client attrition rate all are took initiative for a customer service delivery of Bank Asia correlated to customer service survey by developing a set of to fnd out clients’ expectation. standard of the bank. With this questionnaires based on fve Using the survey method, data view in mind, a new customer categories of customers. Later, was collected from randomly service policy approved by the Risk Management Division selected respondents with the Board has been introduced in carried out a pilot survey in 2014 following objectives. May, 2014. But assessing real with smaller sample size. This

BANK ASIA LIMITED BANK situation on the ground always report gives brief idea about the To investigate the quality of 72 remains a challenge. And many a outcome of the survey which service delivery by banks to times outcome could be opposite may not be fully representative client to our expectation. of the overall service standard of To assess client’s awareness the bank because of the smaller of products and services sample size available To fnd out the gap between B a n k ’ s client expectation and service v Vi i delivery gilant Su e rveill w ance To identify factors that may Customer In P teraction o cause client dissatisfaction, r Survey i Custome n and t observation sment & To identify the new trends in Asses y service client expectations qualit nt of eme rov Imp

CUSTOMER SURVEY n o ti

a C ic METHODOLOGY & SATISFACTION d e

d u s er m STRUCTURE

o s t us C t n The survey was conducted based io at o ir sp on- In m n Carefully designed assessment tio lia e ﬃ A on questionnaire nti r ete er r Data collected from direct ’ stom s Cu (face to face) interview v on dditi i Value a Existing and prospective e w clients of the Bank were

p o brought under the survey i n t 3 branches were chosen for INFORMATION ABOUT Age the pilot survey THE RESPONDENTS 41% Survey observations had been 35% analyzed using descriptive The tables and charts below statistical method mainly represent the fndings from the frequency table survey. As the survey was a pilot study, the recommendations and 17% The assessment questionnaire is comments of the respondent was 7% categorized into fve parts. not incorporated in the report. brief idea about the The same will be incorporated 0% respondents (age, gender, after completing the large scale survey.

account holding information, than More 20yrs Below 21 yrs occupation etc) 31 yrs 46 yrs 60 yrs

client’s perceived values to 30 yrs to 45 yrs to 60 yrs

about Bank’s service standard about ASIA LIMITED BANK and level of agreement respondents 98% (Strongly agree, Agree, 73 Disagree, Strongly disagree 53% 47% and N/A-for no comments). 38% 37% diferent service quality 18% level such as ATM, POS, Cash 7% Counter, Credit Card, Fees/Bill 2% payments, Client care service of branch etc. which measured Non Type Male

in level of satisfactions (Very Others Holder Gender Female Service Good, Good, Average, Poor, Student Customer Customer

Very poor and N/A for no Occupation Relationship comments). Businessman identify respondent’s awareness about new CUSTOMER AWARENESS ABOUT NEW products, services (e.g. PRODUCT passport fees payment, WASA, Questionnaire Aware Not Aware fexi load etc. mobile fnancial I am aware about new products, services (e.g. service ‘Hello’ etc) of the bank 8% 92% passport fees payment, WASA, fexi load etc.) and any specifc reason for I am aware about mobile banking service dissatisfactions etc. 8% 92% respondent’s (Hello) of the bank recommendations (if any) for improving the service quality Questionnaire Yes No or any other area. Respondents recommend Bank Asia to others 85% 15% I have reason(s) to discontinue banking 8% 92% with Bank Asia Customer Satisfaction Survey Results: 2014 Aw Survey Criteria Result 8% are Responded Overall Customer Service Quality Rating 2.90 About Weighted Average Score New Products Rating Average Response Strongly agree 7.01% 9 2 Agree 39.07% % re Not Awa Neither agree nor disagree 22.20% Disagree 3.34% Strongly disagree 1.50% N/A (Customer has no idea or, no comments of the 26.88%

BANK ASIA LIMITED BANK service) 1 5 %

74 Recomme- N

o Improved customer satisfaction ndation to become a more customer- 8 of Bank Asia 5 remains a key prerequisite for centric, simple and efcient % to others Y achieving our long-term goals. bank. The management expects e s In 2014, we saw a satisfactory that a larger scale survey carried development in several markets out by professionals would give and business units. While we proper insight on customer are on target in some areas, service quality based on which we still have long way to go in customized service strategies will OVERALL CUSTOMER others, however. We expect be introduced to cater the need of the improvement to continue, our demanding customers. SATISFACTION as we maintain a frm focus on SURVEY RESULTS delivering value to our customers Based on the pilot survey and on executing our strategy regarding customer satisfaction, overall weighted average score is 2.90 i.e. customer service quality rating becomes ‘Average’. 7.01% Overall Customer Though rating of the pilot survey Service Quality is not representative, the Bank management has taken seriously 26.88% 39.07% Strongly agree and forcing to take this necessary 1.50% Agree actions for service improvement Neither agree nor disagree like rigorous training to customer 3.34% Disagree service team members, so far 22.20% Strongly disagree 720 hours of trainings has been N/A given covering 90 employees in 2014. Capital management

Implementation of risk based dialogue under Pillar II based requirement 10% which will capital adequacy (RBCA) in line on 2011 and 2012 already gradually increase upto 12.50% with Basel II capital accord was conducted between Bank Asia in the year 2019. Leverage ratios started by Bangladesh Bank, and Bangladesh Bank. will be 3%, liquidity coverage the central bank of Bangladesh, Besides, Bank Asia is taking ratio will be ≥100% and net from the year 2009 as parallel preparation for capital stable funding ratio will be > reporting with Basel I capital management under BASEL III as 100%. An additional counter reporting. Since January 01, Bangladesh Bank has already set cyclical capital bufer will also 2010 Basel II guidelines on a road map for implementation of be required from January 2016. RBCA fully came into force as BASEL III by 2019. BASEL III also brings some a regulatory compliance to be regulatory adjustment of capital, reported under According to the roadmap, e.g. revaluation gain etc., which BASEL III will start from will be 40% in 2015 and will be Pillar I – minimum capital 2015 with minimum capital gradually increased to 100% in

requirement (MCR); Standard- 2019. ASIA LIMITED BANK ized approach for credit risk, Million Taka Standardized (rule based) 75

approach for market risk, and 2014 2013 Basic indicator approach for Tier-1: Core capital 14,174 11,904.15 operational risks; 76.43% Pillar II- supervisory review Tier-2: process; and Pillar III – market discipline. Supplementary capital 3,669 3,670.70 23.57% Bank Asia is very much serious Capital Fund 17,843 15,574.85 to maintain capital adequacy RWA 157,575 140,977 and continuously plan its capital requirements considering risks Capital adequacy ratio (CAR) 11.32% 11.05% and shocks of fnancial market movement. It has implemented Standard MCR is 10% on risk weighted assets (RWA) automated calculation process Bank Asia is in the process of raising Tk. 3,000 million tier 2 for MCR in the form of capital capital by issuing 7 year foating rate non convertible subordinated adequacy ratio (CAR) and debt through private placement, which is expected to be closed in regularly report to the central Q4/2014. bank. We also publish 14.88% Pillar III Market Discipline 11.05% 13.05% Statement in annual reports 11.32% and upload the same into bank’s website on yearly basis. 8.11% 13,930 12,447 15,575 Bank Asia also prepared its 17,843

ICAAP documents based on 2011, 8,157 capital fund 2012 and 2013 and submitted Million Taka to Bangladesh Bank. SRP-SREP Capital Fund Capital Adequecy Ratio 2 3 4 11 20 2010 201 201 201 Building the community

Bank Asia is always aware of its concentrate on issues that make economic, social and ecological Corporate Social Responsibility the bank a socially responsible arena. In the year 2014, Bank (CSR) with an aim to ensure the institution. We are committed Asia has performed various CSR Bank as a socially responsible to social and environmental activities which are presented corporate entity contributing well being and strive to ensure below. towards quality of life of sustainable balanced growth in the society at large without compromising an ecological Donation in social projects condition. During the year, Bank Donation Initiatives Benefciaries Asia spent an amount of (Taka) Tk. 239.84 million for the overall Education 13,444,278 529 students(approx) betterment of the nation. Health 90,279,076 Not Numbered Bank Asia from the very Disaster

BANK ASIA LIMITED BANK 11,136,670 Not Numbered beginning, concedes CSR Management activities as a part of its culture, 76 identity and business practice. Environment 115,000 Not Numbered The basic driver of our CSR Sports 5,200,000 Not Numbered practice consists of values that have been taken place within Art & Culture 16,124,000 Not Numbered business where our eforts Others 103,540,763 Not Numbered continues to look beyond short- term quantitative gains, and Total 239,839,787

Donated 25,000 pieces of blankets to Prime Ministers Relief and Welfare Fund Bank Asia higher studies scholarship awarding program at Sirajdikhan, Munshigonj EDUCATION students of Graduating Nursing Bank Asia supports Bank Asia Higher Studies Department completed their construction of OPD of graduation and some of them Scholarship have been absorbed in the same HFRCMCH Higher Studies Scholarship medical university as fresh Bank Asia is also extending program for rural poor and nurse. fnancial support for construction meritorious students, who are of 20,000 squre feet (approx) studying in public universities, Outdoor Patient Department is the major CSR activity of HEALTH (OPD) building for Holy Family Bank Asia. The Bank initiated Bank Asia supports Red Cresent Medical College the program in 2005 for those construction of a Nurse & Hospital at the premises at students who have merit and Hostel in the BSMMU New Eskaton Garden Road in dream to serve society, but not the capital city Dhaka. The total Bank Asia as a part of corporate the means to pursue higher cost of the project has been social responsibility is extending studies. The scholarship is earmarked Tk. 53.46 million entire fnancial support for ASIA LIMITED BANK given through the Bank’s rural where Bank Asia spent around construction of 40,000 squre feet branches on the basis of SSC Tk. 39.95 million for this purpose 77 (approx) Nursing Student Hostel’ and HSC results. So far, 510 in 2014. at Bangabandhu Sheikh Mujib students have been provided the Medical University (BSMMU) to scholarship. Each of the students mitigate acute accommodation Blood Donation program gets Tk. 34,000 annually as problem of graduate nursing As part of socially responsible scholarship. In the year 2014, students. The total cost of the people, the members of Bank Bank Asia Ltd spent around project has been earmarked Tk. 12.72 million for this Tk. 95.90 million where Bank purpose. Asia spent around Tk. 50.08 Blood donation million for this purpose in 2014. program on 15th Anniversary of Scholarship to Graduate Bank Asia Nurses of the BSMMU Bank Asia under its CSR program provides scholarship and food grant to 19 graduate nursing students of Department of Graduate Nursing in Bangabandhu Sheikh Mujib Medical University (BSMMU) from 2011 to help the nurses lead a healthy life and continue their studies peacefully. A total of Tk. 0.62 million was provided to them as scholarship during the year 2014. With Bank Asia scholarship frst batch Community investment

Education Initiatives Taka Bank Asia Higher Studies Scholarship 12,722,878 Scholarship of Graduate Nursing Students of the 6,21,400 BSMMU Munshigonj Girls High School 100,000 Total 13,444,278

Health Initiatives Taka Cancer patient 200,000

BANK ASIA LIMITED BANK Construction of Graduate Nursing Hostel at BSMMU 50,082,934 78 Construction of OPD of HFRCMCH 39,951,142 BADHAN Blood Donor Organization 45,000 Total 90,279,076

Disaster Management Initiatives Taka Prime Minister's Relief & Welfare Fund 7,500,000 Support to victim army family in BDR carnage 480,000 Support to cold-hit people 3,156,670 Total 11,136,670

Environment Initiatives Taka Awareness building on World Environment Day 115,000 Total 115,000

Sports Initiatives Taka ICC T-20 world cup 5,200,000 Total 5,200,000

Water pollution by Tannery waste Art and Culture Initiatives Taka Chandraboti Academy 1,000,000 Support to published green banking book 30,000 Bangla Barsha Bidaya O Barsha Baron, Chittagong 20,000 Barsha Baron, Dhaka 21,000 Wrishizo Nattya Goshthi 25,000 Anondo Niketon, Sylhet 28,000 Lakho Konthe Sonar Bangla Tohobil 15,000,000 Total 16,124,000 BANK ASIA LIMITED BANK Other Social Project 79 Initiatives Taka Bangabondhu Sheikh Mujibur Rahman Memorial 100,000,000 Trust Rotary Club 86,000 Message on International Mother Language day 1,061,450 Donate to Bankers Bangladesh 100,000 Lok Nattya Dal 50,000 Lions Club (District 315) 23,000 National School Science Debate competition 500,000 National Science Olympiad 200,000 Aytijhyo Pakundia 118,008 Notre Dame Debating Club 75,008 Anaondo Sangskritik Angon 10,000 Sandhani 28,750 Blood Donation Program 329,986 Bangladesh Shishu Shahittyo Academy 20,000 Parents Waiting Shed at Motijheel Model High 420,000 School & College Waiting Shed for Industrial Police at KEPZ 518,561 Total 103,540,763 Asia formed Bank Asia Donor Group. The objectives of the group are to donate blood when and where necessary, donate eye posthumously, promote and encourage all levels of people to come forward to this priceless donation. Already about 100 members formally joined the donor group platform and started donating blood. On the occasion of celebrating 15th anniversary, Bank Asia with support from Bangladesh Red Bank Asia distributed warm

BANK ASIA LIMITED BANK Crescent Society organized blood cloths among cold-hit people donation programs in Dhaka and in diferent parts of the 80 Chittagong simultaneously where country employees of the bank donated blood. Other health related a volunteer blood donor donations organization. The Bank also Bank Asia donated Tk. 200,000 extended support to individuals to a cancer patient and and institutions as a part of its Tk. 45,000 to Badhan, CSR activities.

Handing over a cheque to Prime Minister’s Relief & Welfare Fund Tk. Bank Asia donates to one of our employees for medical treatment against a fatal 2 desease named Guillain Barre Million Syndrome (GBS)

DISASTER ENVIRONMENT Academy, support to published green banking book, Bangla MANAGEMENT During the year 2014, Bank Asia spent Tk. 0.12 million to Barsha Bidaya O Barsha Baron, As a responsible corporate protect the environment and city Wrishizo Nattya Goshthi, Anondo citizen, Bank Asia is committed beautifcation purposes. Niketon, Lakho Konthe Sonar to the welfare of the community Bangla Tohobil and others. at large. The Bank responds promptly to support the afected SPORTS humanity. In 2014, Bank Asia During the year 2014, Bank Asia OTHER SOCIAL donated Tk. 7.5 million to the contributed Tk. 5.20 million for PROJECTS Prime Minister’s Relief & Welfare organizing events of ICC T-20 Bank Asia donated/sponsored/ Fund to help government carry World cup, Golf Tournament, spent Tk. 103.54 million on out its humanitarian activities Corporate Cricket Tournament the occasion of social project smoothly. and others. including Bangabondhu Sheikh

Mujibur Rahman Memorial ASIA LIMITED BANK It also donated Tk. 0.48 million ARTS & CULTURE Trust, National Science Olympiad, to a victim family of BDR carnage 81 Bank Asia always supports Rotary Club, Message on as a part of regular support. promotion of art and culture. The International Mother Language The Bank also distributed warm Bank sponsored Tk. 16.12 million Day, Lok Nattya Dal, Lions Club cloths among cold-hit people in for various arts and cultural (District 315), National School diferent parts of the country program including Chandraboti Science Debate competition, during severe cold spell of Sandhani, Blood donation December and January. program and others.

Bank Asia contributes for ICC T-20 World Cup & Lakho Kanthe Sonar Bangla Tahobil GRI G4 Content Index ‘In Accordance’ Option: Core General Standard Disclosures

External Disclosure Page no. Comments Assurance Strategy & Analysis G4-1 Statement from the most senior decision-maker 10-13 No of the organization Organizational Profle G4-3 Name of the organization. 16 No G4-4 Primary brands, products, and services 32 No BANK ASIA LIMITED BANK G4-5 Report the location of the organization’s 6 No 82 headquarters. G4-6 "Number of countries where the organization 16 No operates, and names of countries with either major operations or that are specifcally relevant to the sustainability issues covered in the report” G4-7 Nature of ownership and legal form 16 No G4-8 Markets served (including geographic 16-17 No breakdown, sectors served, and types of customers and benefciaries) G4-9 Scale of the organization 16 No G4-10 Total number of employees by type 60-63 No G4-11 Percentage of total employees covered by No private No collective bargaining agreements commercial Bank in Bangladesh has trade union G4-12 Supply chain 70 No G4-13 Signifcant changes during the reporting period 6 No G4-14 Precautionary approach 25-26 No G4-15 External charters, principles, or other Policy set by No initiatives Bangladesh Bank regarding environmental risk management, green banking are adopted by Bank Asia G4-16 Membership associations 17 No External Disclosure Page no. Comments Assurance Identifed Material Aspects & Boundaries G4-17 Entities included in the organizations's 6, 29 No consolidated fnancial statements G4-18 Process for defning report content and the 18, 20 No aspect Boundaries G4-19 Material aspects 21 No G4-20 Material aspect boundaries within the 20 No organization G4-21 Material aspect boundaries outside the 20 No organization G4-22 Efects of any restatements 6 No G4-23 Signifcant changes during the reporting period 6 No Stakeholder Engagement G4-24 Stakeholder groups engaged by the organization 19-20 No G4-25 Basis for identifcation and selection of 18 No stakeholders G4-26 Approach to stakeholder engagement 19-20 No G4-27 Key topics raised during stakeholder 19-20 No engagements Report Profle G4-28 Reporting period 6 No G4-29 Date of most recent previous report 6 No G4-30 Reporting cycle 6 No G4-31 Contact point for questions regarding the report 6 No G4-32 In accordance option chosen 6 No G4-33 Policy regarding report assurance 6 No BANK ASIA LIMITED BANK Governance G4-34 Governance structure of the organization 22-28 No 83 Ethics & Integrity G4-56 Organization’s values, principles, standards and 4-5 No norms of behavior such as codes of conduct and codes of ethics

Specifc Standard Disclosures Disclosures on Management Approach (DMAS) Product profle FS1 Policies with specifc environmental and social 37-40 No components applied to business lines FS2 Procedures for assessing and screening 40 No environmental and social risks in business lines FS3 "Processes for monitoring clients’ 40 No implementation of and compliance with environmental and social requirements included in agreements or transactions” FS4 Processes for improving staf competency 40-41 No to implement the environmental and social policies and procedures as applied to business lines FS5 "Interactions with clients/investees/business 40 No partners regarding environmental and social risks and opportunities” Audits 45 No External Disclosure Page no. Comments Assurance Economic (EC) Economic Performance 49, 52-60, No 76-81 Market Presence 54-59 No

Aspects Procurement Practices All our suppliers No are local Environmental (EN) Energy 47 No Emissions 48-49, 51 No Efuents and Waste 48 No Products and Services 49 No Compliance 51 No

Aspects Transport 41 No Overall 49 No Environmental Grievance Mechanisms We faced no No grievances in 2014 Labor Practices and Decent Work (LA) Employment 60-65 No Labor/Management Relations 60 No Occupational Health and Safety 69 No Training and Education 65-68 No

Aspects Diversity and Equal Opportunity 61-64 No Equal Remuneration for Women and Men 60 No Labor Practices Grievance Mechanisms 59, 71 No Human Rights (HR)

BANK ASIA LIMITED BANK Investment 70 No Child Labor 70 No 84 Forced or Compulsory Labor 70 No Security Practices 70-71 No Aspects Indigenous Rights 70-71 No Human Rights Grievance Mechanisms 59-71 No Society (SO) Anti-corruption 58-70 No Compliance 59-71 No Grievance Mechanisms for Impacts on Society We faced no No Aspects grievances in 2014 Aspects Product Responsibility (PR) Product and Service Labeling 38-39, 46, No 71-74 FS15: Policies for the fair design and sale of fnancial products 45-46 No and services Marketing Communications 71 No Customer Privacy 71 No Compliance 71 Aspects No Product Portfolio FS6 "Percentage of the portfolio for business lines by 41-42 No specifc region, size (e.g. micro/SME/ large) and by sector” FS7 Monetary value of products and services 42-46 No designed to deliver a specifc social beneft for each business line broken down by purpose External Disclosure Page no. Comments Assurance FS8 Monetary value of products and services 42-46 No designed to deliver a specifc environmental beneft for each business line broken down by purpose Audit FS9 "Coverage and frequency of audits to assess 45 No implementation of environmental and social policies and risk assessment procedures” Category: Economic Economic Performance G4-EC1 Direct economic value generated and 52-59 No distributed 76-81 "FSS: Commentary added to the value generated by the organization’s community investment programs and breakdown of community investment by theme” G4-EC2 Financial implications and other risks and 49 No opportunities for the organization’s activities due to climate change G4-EC3 Coverage of the organization’s defned beneft 60 No plan obligations G4-EC4 Financial assistance received from government 58 No Market Presence G4-EC5 Ratios of standard entry level wage by gender Bank Asia practices No compared to local minimum wage at signifcant competitive salary locations of operation package in all level in line with ASIA LIMITED BANK the industry best 85 practices G4-EC6 Proportion of senior management hired from All the employees of No the local community at signifcant locations of Senior Management operation are hired from Bangladesh G4-EC7 Development and impact of infrastructure 54-59 No investments and services supported G4-EC8 Signifcant indirect economic impacts, including 58 No the extent of impacts Procurement Practices G4-EC9 Proportion of spending on local suppliers at All our suppliers No signifcant locations of operation are local Category: Environmental No Energy G4-EN3 Energy consumption within the organization 47 No G4-EN6 Reduction of energy consumption 47 No G4-EN7 Reductions in energy requirements of products 47 No and services Emissions G4-EN15 Direct greenhouse gas (ghg) emissions (scope1) 51 No "FSS: Commentary added to invite reporting on greenhouse gas emissions relating to business travel” G4-EN19 Reduction of greenhouse gas (ghg) emissions 48-49 No Efuents and Waste External Disclosure Page no. Comments Assurance G4-EN23 Total weight of waste by type and disposal 48 No method "FSS: Commentary added to specify primary types of waste streams being paper and waste IT for fnancial institutions.” Products and Services G4-EN27 Extent of impact mitigation of environmental 49 No impacts of products and services Compliance G4-EN29 Monetary value of signifcant fnes and total 51 No number of non-monetary sanctions for non- compliance with environmental laws and regulations Transport G4-EN30 Signifcant environmental impacts of 41 No transporting products and other goods and materials for the organization’s operations, and transporting members of the workforce Overall G4-EN31 Total environmental protection expenditures 49 No and investments by type Environmental Grievance Mechanisms G4-EN34 Number of grievances about environmental We faced no No impacts fled, addressed, and resolved through grievances in 2014 formal grievance mechanisms Category: Social BANK ASIA LIMITED BANK Sub Category: Labor Practices and Decent Work 86 Employment G4-LA1 Total number and rates of new employee hires 61-64 No and employee turnover by age group, gender and region G4-LA2 Benefts provided to full-time employees that 60 No are not provided to temporary or parttime employees, by signifcant locations of operation G4-LA3 Return to work and retention rates after 65 No parental leave, by gender Labor/Management Relations G4-LA4 Minimum notice periods regarding operational 60 No changes, including whether these are specifed in collective agreements Occupational Health and Safety G4-LA5 Percentage of total workforce represented in 69 No formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs G4-LA8 Health and safety topics covered in formal No private No agreements with trade unions commercial bank in Bangladesh has trade union Training and Education G4-LA9 Average hours of training per year per employee 68 No by gender, and by employee category G4-LA10 Programs for skills management and 68 No lifelong learning that support the continued employability of employees and assist them in managing career endings External Disclosure Page no. Comments Assurance G4-LA11 Percentage of employees receiving regular 65 No performance and career development reviews, by gender and by employee category Diversity and Equal Opportunity G4-LA12 Composition of governance bodies and 61-64 No breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity Equal Remuneration for Women and Men G4-LA13 Ratio of basic salary and remuneration of 60 No women to men by employee category, by signifcant locations of operation Labor Practices Grievance Mechanisms G4-LA16 Number of grievances about labor practices 59, 71 No fled, addressed, and resolved throughformal grievance mechanisms Category: Social Sub Category: Human Rights Investment G4-HR1 Total number and percentage of signifcant 70 No investment agreements and contracts that include human rights clauses or that underwent human rights screening "FSS: Commentary added to report on investment agreements for the fnancial services” G4-HR3 Total number of incidents of discrimination and 70 No ASIA LIMITED BANK corrective actions taken 87 Child Labor G4-HR5 Operations and suppliers identifed as having 70 No signifcant risk for incidents of child labor, and measures taken to contribute to the efective abolition of child labor Forced or Compulsory Labor G4-HR6 Operations and suppliers identifed as having 70 No signifcant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of all forms of forced or compulsory labor Security Practices G4-HR7 Percentage of security personnel trained in 70-71 No the organization’s human rights policies or procedures that are relevant to operations Indigenous Rights G4-HR8 Total number of incidents of violations involving 70-71 No rights of indigenous peoples and actions taken Human Rights Grievance Mechanisms G4-HR12 Number of grievances about human rights 59, 71 No impacts fled, addressed, and resolved through formal grievance mechanisms Category: Social Sub Category: Society Local Communities FS13 Access points in low-populated or economically 56-58 No disadvantaged areas by type External Disclosure Page no. Comments Assurance FS14 Initiatives to improve access to fnancial 56-58 No services for disadvantaged people Anti-corruption G4-SO4 Communication and training on anti-corruption 70 No policies and procedures G4-SO5 Confrmed incidents of corruption and actions After proper No taken investigation corrective actions were taken against corruption in 2014 G4-SO6 Total value of political contributions by country 58 No and recipient/benefciary Compliance G4-SO8 Monetary value of signifcant fnes and total 59, 71 No number of non-monetary sanctions for non- compliance with laws and regulations Grievance Mechanisms for Impacts on Society No G4-SO11 Number of grievances about impacts on society We faced no No fled, addressed, and resolved through formal grievances in 2014 grievance mechanisms Category: Social Sub Category: Product Responsibility Product and Service Labeling G4-PR3 Type of product and service information 38-39 No required by the organization’s proceduresfor BANK ASIA LIMITED BANK product and service information and labeling, 88 and percentage of signifcantproduct and service categories subject to such information requirements G4-PR4 Total number of incidents of non-compliance 71 No with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes G4-PR5 Results of surveys measuring customer 72-74 No satisfaction FS16 Initiatives to enhance fnancial literacy by type 46 No of benefciary Marketing Communications G4-PR7 Total number of incidents of non-compliance 71 No with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship, by type of outcomes Customer Privacy G4-PR8 Total number of substantiated complaints 71 No regarding breaches of customer privacy and losses of customer data Compliance G4-PR9 Monetary value of signifcant fnes for 71 No non-compliance with laws and regulations concerning the provision and use of products and services