Letter of Transmittal l 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 tta Annual Report for the year ended on 31 December 2019. Dear Sir, mi We are pleased to present a copy of the Annual Report 2019 with Audited s Financial Statements. The report includes consolidated and separate Balance Sheet, Profit and Loss Account, Statement of Cash Flows, Statement of n Changes in Equity, Liquidity Statement for the year ended on 31 December 2019 with the notes thereto. Statements are prepared on Trust Bank Limited a (TBL) and its Subsidiaries-Trust Bank Investment Limited (TBIL) and Trust Bank Securities Limited (TBSL). Tr Yours Sincerely, f o Md. Mizanur Rahman, FCS r Company Secretary ette L About Us Trust Bank Limited (TBL) was established as a scheduled bank in 1999 to ensure useful and affordable banking services with optimum value to the people of Bangladesh. With a successful journey of 20 years, the Bank has emerged as a leading, sound and stable commercial private bank in Bangladesh. The Bank offers the entire spectrum of financial services to customer segments, spanning large and mid-corporates, SME and retail businesses. Trust Bank, first of its kind in the history of Bangladesh, was initially sponsored by Army Welfare Trust (AWT) of Bangladesh Army. In 2007, the Bank listed itself with the stock exchanges and floated the shares for general public. Now, AWT is the largest shareholder, holding 60% of stake of the Bank. Over the years, the Bank has developed long-term relationship with its customers by being their preferred financial solutions partners, leveraging profound insights and superior services. Considering the business volume and manifold customers demand, the Bank has upgraded its technology and managed the growth for achieving public confidence. Branches 112 ATM s 232 t-Lobby Credit Rating 7 AA2 Long Term ST- 2 Short Term RANGPUR Financial Highlights BDT in Million MYMENSINGH Total Assets 296,453 RAJSHAHI SYLHET Loans and Advances 212,836 Deposits 241,822 DHAKA Total Shareholders Equity 15,279 Financial Ratio KHULNA CHATTOGRAM BARISHAL Return on Average Assets 0.73% Cost to Income 36.04% Tier-I Capital Ratio 8.10% Trust Bank- ‘A Bank for financial inclusion’ extends relentless efforts for bringing the unbanked population into 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 financial needs of the customers by providing high-quality products and services through regular customer engagements. We believe our diversified business and robust risk management strategies are significant catalyst to ensure long term sustainable growth of the country. Therefore, we are dedicated to meet up with the ever growing expectations of all the stakeholders including the customers, shareholders, employees and regulators with highest level of accountability. Corporate Information Registered Name of the Company Trust Bank Limited n 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. Mohammad Aminul Haque, FCA Head of Internal Control and Compliance Mr. Md. Kamal Uddin Kutubi Corporate Informatio Registered Office Shadhinata Tower, Bir Srestha Shaheed Jahangir Gate, Dhaka Cantonment, Dhaka-1206. Key Milestone 17 June Date of Incorporation 17 June Certificate of Commencement of Business Received 1999 15 July Banking Licence Received 9 August First Branch Licence Received 29 November Formal Inauguration January Online Banking Operations across all the Branches 17 May Publication of Prospectous for IPO 15 July Subscription Opening for IPO 2007 19 July Subscription Closing for IPO 24 September Listed with Chittagong Stock Exchange Limited 25 September Listed with Dhaka Stock Exchange Limited 01 October Commencement of Trading of Shares at DSE and CSE 2009 31 May Authorized Share Capital Increased to BDT 500 Crore 27 January TBL Mutual Fund Trading Started 31 August Launching of Trust Bank Mobile Money (TBMM) 2010 09 September Formaiton of Trust Bank Investment Limited (TBIL) 14 November Commencement of Operation of TBIL 06 June Authorized Share Capital Increased to BDT 1000.00 Crore 2012 28 November Allotment of 1 Share (Membership) of DSE to Trust Bank Securities Limited 2013 26 September Inception of Business Operation of Trust Bank Securities Limited (TBSL) 01 November Launching of Call Centre 2014 08 December Commencement of i-Banking Service 2015 30 August Inauguration of 100th Branch at Mohammadpur, Dhaka 2017 08 June Inauguration of 200th ATM Booth at Jibtoli Army Camp, Kaptai, Rangamati 2018 01 April Launching of ‘t-cash’ 2019 29 November 20 Years of Successful Operation Professional Partners and Memberships External Auditors Hussain Farhad & Co. Chartered Accountants House # 15, Road # 12, Block # F Niketon, Gulshan-1, Dhaka-1212. MABS & J Partners Chartered Accountants Corporate Office , SME Tower (7th Floor) 33, Banani C/A, Road # 17, Dhaka-1213. Corporate Governance Auditor K.M. Hasan & Co. Chartered Accountants Hometown Apartment (7 th , 8 th and 9 th Floor) 87, New Eskaton Road, Dhaka-1000. Tax Consultants M/s. ADN Associates Rupayan Karim Tower, Flat # A-11 80, Kakrail, Dhaka-1000. Rating Agency Credit Rating Agency of Bangladesh Limited Level # 15, DH Tower 6 Panthapath, Dhaka-1215. Memberships Association of Bankers, Bangladesh Limited Contents General Information Letter of Transmittal 01 About Us 02 Corporate Information 03 Key Milestone 04 Professional Partners and Memberships 05 Strategic Report Performance Highlights of 2019 08 Governance at a Glance 10 Board of Directors s 12 Chairman’s Message 24 Message from MD & CEO 26 Performance Summary 28 Forward Looking Statement 29 Towards a Sustainable Banking 30 Our Vision 32 Our Mission 32 Our Values 32 Our Investors 33 Our Code of Conduct 34 ontent Our Business Ethics 35 Key Economic Indicators 36 C Risk Overview 37 Financial Calendar 38 BAPLC Certificate 39 Contents Governance Report Corporate Governance Report 40 Declaration by CEO and CFO on Financial Statements, 2019 58 Corporate Governance Compliance Certificate and Checklist 59 Directors’ Report 74 Report of the Audit Committee 93 Management Discussion and Analysis 97 Sustainabale Financing 147 Report of Shariah Supervisory Committee 150 Risk Management Report Risk Management Report 154 Disclosures on Risk Based Capital (Basel III) 2019 166 Financial Statements Independent Auditors’ Report and Financial Statements of TBL 191 Independent Auditors’ Report and Financial Statements of TBIL 292 Independent Auditors’ Report and Financial Statements of TBSL 325 Others Branch Networks 348 Photo Gallery 355 Notice of the 21st Annual General Meeting 362 Proxy Form 363 Performance Highlights of 2019 Solo Basis (BDT in Million) Total Operating Income Total Operating Expense 15,000 6,000 11,122 10,086 9,536 10,000 4,009 3,784 3,785 8,237 7,529 3,724 3,628 3,000 5,000 0 0 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Deposits Loans and Advances 250,000 300,000 210,767 242,025 197,128 250,000 184,911 212,681 200,453 200,000 200,000 173,060 141,987 150,854 150,000 130,615 150,000 100,000 100,000 50,000 50,000 0 0 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Total Liabilities Total Assets 294,892 300,000 279,952 300,000 259,638 246,751 239,771 250,000 227,658 250,000 210,242 199,066 180,230 200,000 170,718 200,000 150,000 150,000 100,000 100,000 50,000 50,000 0 0 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 8 Annual Report 2019 Performance Highlights of 2019 Performance Highlights of 2019 Solo Basis (BDT in Million) Solo Basis (BDT in Million) Total Operating Income Total Operating Expense Export Import 15,000 120000 119,622 48,929 6,000 50,000 48,350 11,122 42,819 100000 10,086 85,197 9,536 4,009 40,000 37,733 10,000 8,237 3,784 3,724 3,785 36,552 80000 72,572 74,256 7,529 3,628 66,079 30,000 60000 3,000 5,000 20,000 40000 10,000 20000 0 0 0 0 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Deposits Loans and Advances Investments Total Capital 250,000 300,000 210,767 50,000 30,000 242,025 197,128 26,430 184,911 41,042 24,045 250,000 212,681 200,000 25,000 200,453 40,000 20,435 173,060 141,987 32,305 30,739 19,458 200,000 130,615 28,545 20,000 150,854 150,000 30,000 24,262 13,590 150,000 15,000 100,000 20,000 100,000 10,000 50,000 50,000 10,000 5,000 0 0 0 0 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Total Liabilities Total Assets Foreign Remittance Total Shareholders’ Equity 294,892 60,000 300,000 279,952 300,000 259,638 246,751 239,771 48,865 50,113 20,000 250,000 227,658 250,000 50,000 210,242 14,940 199,066 180,230 40,000 200,000 170,718 200,000 15,000 12,888 12,112 29,494 11,175 30,000 9,512 150,000 150,000 23,172 24,215 10,000 100,000 100,000 20,000 5,000 50,000 50,000 10,000 0 0 0 0 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 2019 2018 2017 2016 2015 Annual Report 2019 9 Governance at a Glance Our Board Chairman The Board has ten directors (excluding the Gen Aziz Ahmed, SBP, BSP, BGBM, PBGM, BGBMS, psc, G MD & CEO) comprising the Chairman, one Vice Chairman, two Independent Directors and six other Directors.