01 Letter of Transmittal LeL ttet r of Transmittal All Shareholders of Trust Bank Limited Bangladesh Securities and Exchange Commission Dhaka Stock Exchange Limited Chittagong Stock Exchange Limited Registrar of Joint Stock Companies and Firms Annual Report for the year ended on 31 December 2020. Dear Sir, We are pleased to present a copy of the Annual Report 2020 with Audited Financial Statements. The report includes consolidated and separate Balance Sheet, Profit and Loss Account, Statement of Cash Flows, Statement of Changes in Equity and Liquidity Statement for the year ended on 31 December 2020 with the notes thereto. Statements are prepared on Trust Bank Limited (TBL) and its Subsidiaries and Joint Venture-Trust Bank Investment Limited (TBIL), Trust Bank Securities Limited (TBSL) and Trust Axiata Digital Limited (TADL). Yours Sincerely, Md. Mizanur Rahman, FCS Company Secretary Annual Report 2020 1 01 About Us Trust Bank Limited (TBL) was established as a scheduled bank in 1999 to provide necessary and affordable banking services with optimum value to the people of Bangladesh. With a successful journey of two decades, the Bank has now emerged as a leading, sound and stable commercial private bank in Bangladesh. The Bank offers the entire spectrum of financial services to customer segments, including large and mid-corporates, SME and retail businesses. Trust Bank, the first of its kind in the history of Bangladesh, was initially sponsored by Army Welfare Trust (AWT), Bangladesh Army. The Bank was listed with the Stock Exchanges in 2007 and floated the shares for the general public. At present, AWT is the largest shareholder, holding 60% of the stake of the Bank. Over the years, the Bank has developed a long-term relationship with its customers by being their preferred financial solutions partners, leveraging profound insights and superior services. Moreover, considering the business volume and manifold customers demand, the Bank has upgraded its technology and managed to achieve public confidence Branches Credit Rating 113 ATMs 242 t-Lobby AA2 Long Term 7 ST- 2 Short Term RANGPUR Financial Highlights BDT in Million MYMENSINGH Total Assets 356,458 RAJSHAHI SYLHET Loans and Advances 223,231 DHAKA Deposits 286,935 Total Shareholders Equity 17,609 KHULNA CHATTOGRAM Financial Ratio BARISHAL Return on Average Assets 0.55% Cost to Income 37.96% Tier-I Capital Ratio 8.76% Trust Bank, being 'A Bank for financial inclusion', extends relentless efforts for bringing the unbanked population into the banking network through low cost and technology-driven service delivery. To enrich the service delivery standard, the Bank has added alternative delivery channels (i.e. ATM, Cards, i-banking, mobile banking, etc.) in its day-to-day banking activities. Moreover, the Bank is always focused on meeting the customers' financial needs by providing high-quality products and services through regular customer engagements. We believe our diversified business and robust risk management strategies are the significant catalysts to ensure the country's long-term sustainable growth. Therefore, we are dedicated to meet up with the ever-growing expectations of all the stakeholders, including the customers, shareholders, employees and regulators, with the highest level of accountability. 2 Annual Report 2020 Corporate Information 01 Corporate Information Registered Name of the Company Trust Bank Limited Legal Form The Company was incorporated on 17 June 1999 under the Companies Act 1994 as a Public Limited Company for carrying out all kinds of banking activities. Registration Number and Date C-37960 (2260)/99, 17 June 1999 Sponsor Shareholder Army Welfare Trust Corporate Website www.tblbd.com Email [email protected] Company Secretary Mr. Md. Mizanur Rahman, FCS Chief Financial Officer Mr. Md. Mahfuzur Rahman Head of Internal Control and Compliancep Mr. Md. Kamal Uddin Kutubi Registered Office Shadhinata Tower, Bir Srestha Shaheed Jahangir Gate, Dhaka Cantonment, Dhaka-1206. Subsidiaries and Joint Venture Trust Bank Investment Limited (TBIL) Trust Bank Securities Limited (TBSL) Trust Axiata Digital Limited (TADL) Annual Report 2020 3 01 Key 01 Professional Milestone Partners 17 June Date of Incorporation External Auditors 17 June Certificate of Commencement of Business Received M/s . M. J. Abedin & Co. 15 July Banking Licence Received Chartered Accountants 1999 National Plaza, 3rd Floor 9 August First Branch Licence Received 109 Sonargaon Road, Dhaka 1205. 29 November Formal Inauguration Corporate Governance Auditor January Online Banking Operations across all the Branches K.M. Hasan & Co. 17 May Publication of Prospectous for IPO Chartered Accountants Hometown Apartment (7th, 8th and 9th Floor) 15 July Subscription Opening for IPO 87, New Eskaton Road, Dhaka - 1000. 19 July Subscription Closing for IPO Rating Agency 2007 Credit Rating Agency of Bangladesh Limited 24 September Listed with Chittagong Stock Exchange Limited Level # 15, DH Tower 25 September Listed with Dhaka Stock Exchange Limited 6 Panthapath, Dhaka - 1215. 01 October Commencement of Trading of Shares at DSE and CSE Tax Consultants M/s. ADN Associates 2009 31 May Authorized Share Capital Increased to BDT 500 Crore Rupayan Karim Tower, Flat # A - 11 80, Kakrail, Dhaka - 1000. 27 January TBL Mutual Fund Trading Started Jasmin & Associates 31 August Launching of Trust Bank Mobile Money (TBMM) Independent Scrutinizer 2010 Chartered Secretaries 090 September Formaiton of Trust Bank Investment Limited (TBIL) 14 November Commencement of Operation of TBIL Memberships 06 June Authorized Share Capital Increased to BDT 1000.00 Crore 2012 28 November Allotment of 01 Share (Membership) of DSE to Trust Bank Securities Limited 2013 26 September Inception of Business Operation of Trust Bank Securities Limited (TBSL) Association of Bankers, Bangladesh Limited 01 November Launching of Call Centre 2014 08 December Commencement of i-Banking Service th 2015 30 August Inauguration of 100 Branch at Mohammadpur, Dhaka th 2017 08 June Inauguration of 200 ATM Booth at Jibtoli Army Camp, Kaptai, Rangamati The Institute of Bankers, Bangladesh 2018 01 April Launching of ‘t-cash’ 2019 29 November 20 Years of Successful Operation st 2020 09 March Opening of 1 Sub-Branch at Ramu Cantonment, Cox's Bazar 30 December Launching of Trust Axiata Pay "tap" 4 Annual Report 2020 01 Professional Partners External Auditors M/s . M. J. Abedin & Co. Chartered Accountants National Plaza, 3rd Floor 109 Sonargaon Road, Dhaka 1205. Corporate Governance Auditor K.M. Hasan & Co. Chartered Accountants Hometown Apartment (7th, 8th and 9th Floor) 87, New Eskaton Road, Dhaka - 1000. Rating Agency Credit Rating Agency of Bangladesh Limited Level # 15, DH Tower 6 Panthapath, Dhaka - 1215. Tax Consultants M/s. ADN Associates Rupayan Karim Tower, Flat # A - 11 80, Kakrail, Dhaka - 1000. Jasmin & Associates Independent Scrutinizer Chartered Secretaries Memberships Association of Bankers, Bangladesh Limited The Institute of Bankers, Bangladesh Annual Report 2020 5 Table of Contents 01 General Information Letter of Transmittal 01 About Us 02 Corporate Information 03 Key Milestone 04 Professional Partners and Memberships 05 02 Strategic Report Performance Highlights of 2020 10 Governance at a Glance 12 Board of Directors 14 Chairman’s Message 25 Message from MD & CEO 27 Forward Looking Statement 31 Towards a Sustainable Banking 32 Our Vision 34 Our Mission 34 Our Values 34 Our Investors 35 Our Code of Conduct 36 Our Business Ethics 37 Key Business Indicators 38 Risk Overview 39 Financial Calendar 40 BAPLC Certificate 41 6 Annual Report 2020 Table of Contents 03 Governance Report Corporate Governance Report 43 Declaration by CEO and CFO on Financial Statements, 2020 62 Corporate Governance Compliance Certificate and Checklist 63 Dividend Distribution Policy 78 Directors’ Report 79 Report of the Audit Committee 101 Evaluation of the Quarterly Financials by the Audit Committee and by the Board 104 Management Discussion and Analysis 105 Report on the Going Concern Status of Trust Bank Ltd. 147 Report on Sustainable Finance Activities 148 Report of Shariah Supervisory Committee 150 Risk Management Report 154 Disclosures on Risk Based Capital (Basel III) for the year 2020 165 04 Financial Statements Independent Auditors’ Report and Financial Statements of Trust Bank Limited 191 Independent Auditors’ Report and Financial Statements of Trust Bank Investment Limited 302 Independent Auditors’ Report and Financial Statements of Trust Bank Securities Limited 335 Independent Auditors’ Report and Financial Statements of Trust Axiata Digital Limited 358 05 Others Branch Network 387 Photo Gallery 395 Notice of the 22nd Annual General Meeting 402 Proxy Form 403 Annual Report 2020 7 STRATEGIC REPORT 02 Performance Highlights of 2020 Solo Basis (BDT in Million) Total Operating Income Total Operating Expense 11,729 10,086 8,237 4,444 3,784 3,785 11,133 9,536 4,020 3,724 15,000 5,000 10,000 5,000 3,000 - 1,000 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Deposits Loans And Advances 288,404 212,681 173,060 221,064 197,128 141,987 242,025 200,453 210,767 184,911 250,000 300,000 200,000 200,000 150,000 100,000 100,000 50,000 - - 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 Total Liabilities Total Assets 337,739 246,751 199,066 354,778 259,638 210,242 279,952 227,658 294,892 239,771 350,000 350,000 250,000 250,000 150,000 150,000 50,000 50,000 2020 2019 2018 2017 2016 2020 2019 2018 2017 2016 10 Annual Report 2020 02 Performance Highlights of 2020 Solo Basis (BDT in Million)