It is my great pleasure to welcome you all at the 11th Annual General Meeting of BRAC Bank Limited. At the very beginning, I would like to express our heartiest gratitude for your continuous support and cooperation in BRAC Bank limited being recognized as the premier brand in the financial industry of Bangladesh.

Since the inception, BRAC limited has undertaken various steps in preserving and promoting the interests of its customers, employees, shareholders while serving the greater purpose of sustainable development. Corporate social Responsibility is integrated in the DNA of all the activities of BRAC Bank limited. The Bank operates under a “Triple Bottom Line’ agenda where profit and social responsibility go hand in hand as it strives towards a poverty free and enlightened Bangladesh.

In Bangladesh, Small and Medium size Enterprises (SMEs) do not get the same access to banks and financial institutions as big companies do, But SMEs have a significant role in employment generation, poverty alleviation and overall economic growth, especially for a developing economy like that of Bangladesh’s. BRAC Bank started its business in 2001 with a clear vision to work as a catalyst for the vibrant yet unbanked SME sector in Bangladesh.

BRAC Bank limited has a wide distribution coverage across Bangladesh in SME business. Being the pioneer, BRAC Bank limited still holds the ‘Number One’ position in SME business. In 2009 alone we distributed loans to 67.047 Small and Medium Entrepreneurs’ amounting to BDT, 32,188.26 million; we also opened 29 SME Service Centers. Currently we are 59 SME Service Centers and 429 Unit Offices strong.

Your Bank is continuously expanding its business to reach the doorstep of our valued clients. Despite the worldwide economic turmoil, your Bank did well amid both favorable and unfavorable conditions. In 2009 we expended our network across the country. During the year we opened 13 branches, 57 ATMs. Now we have 69 branches, 179 ATM booths, 30 Cash Deposit Machines, 1558 POS terminals, 19 Utility Services Bill Payment Booths and also 1900 Remittance Delivery Points. The grand total of our customer touch points is 3,814 serving a total of 878,837 customers. This, I believe is perhaps one of the highest amongst the private sector banks, which has been achieved in a short period of less than nine years that the Bank has been in existence.

2009 was an exceptionally challenging year for the financial sector in Bangladesh. The gap between national deposit and national investment was increasing in the last three years. On one hand, low investment resulted in excess liquidity in the money market. On the other hand, the Bank was under pressure to cut its interest rate and reduce the service charges over the year. Despite the adverse situations, the performance of your Bank was remarkable.

Last year your Bank earned BDT. 1303.58 million net profit which is 34% higher from the previous year. Our Net Assets Value (NAV) stood BDT 371.55. In 2008 it was BDT 311.71. In 2009 our Earnings Per Share (EPS) stood at BDT 60.98. Last year it was BDT 45.00 which means this year’s EPS is 36% higher from the previous year. Our Bank’s operating profit is BDT 3,717.58 million, Growth rate is 17%. Our total assets stand at BDT 94,581 million which is 31% higher from the previous year. We trust that your Bank will scale new heights in years to come by continuously improving customer services.

Apart from commercial banking last year your Bank entered into the equity market. We have acquired 51% Shares of Equity Partners Securities Limited. Now these two companies are running their business under the names of BRAC EPL Investments Limited and BRAC EPL Stock Brokerage Limited respectively. We want to become a financial institution where we can offer the entire gamut of financial services to our customers. This will ensure access of the people in the lower income bracket to the country’s vibrant capital market and also ensure that they do so in a prudent and profitable manner. Your Bank wants to take a strong position in the capital market through investment in this market.

We are pleased to inform you that your bank always thinks beyond the banking boundaries which contain an un-tapped potential. Accordingly, this year we are in the process to form a subsidiary company to work as a Payment System Operator (PSO) and Payment Service Provider (PSP) as per the Bangladesh Payment and Settlement System Regulations, 2009 where BRAC Bank Limited will hold 51% share and the partner Money in Motion (MIM) will hold the remaining 49% Share Money in Motion is a USA registered limited liability company, The president of MIM is Iqbal Quadir who is a professor at Massachusetts Institute of Technology (MIT), a visionary entrepreneur and a leading advocate for the application of mobile phones in addressing many of the challenges faced by low-income countries. MIM is in the business of developing banking services fro the un-banked, utilizing new information and communication technologies, electronic platforms, including mobile phones. We believe, this joint venture company will soon become an important part of BRAC Bank’s service delivery channel, thereby enabling us to tap into huge new customer base by providing then with eCommerce and Mobile Banking related services.

We have also invested in another potential company named Dun & Bradstreet Rating agency Bangladesh limited. The Dun & Bradstreet Corporation is headquartered in New Jersey, USA. It is a provider of credit information on businesses and corporations. The company is best known for its D-U-N-S (Data Universal Numbering System) identifiers assigned to over 150 million global companies. Dun & Bradstreet Rating Agency Bangladesh limited is a joint venture company set up with equity participation from some of the major Banks and financial institutions of Bangladesh and Dun & Bradstreet Middle East South Asia. The proposed company aims to provide credit rating for the small and medium enterprises of the country, thereby hoping to have a positive impact on the development of SME sector.

We informed you last year that to expand our business as well as to meet relevant capital adequacy requirements, we were going to issue Subordinated Convertible Bond as Tier-II capital. We are pleased to inform you that we have already submitted the application to the Securities and Exchange Commission for approval. The bond size is BDT 3.00 billion where proposed pre-placement and public offering ratio is 90:10 respectively.

BRAC Bank Limited is continuously updating its technology platform to enhance its services. Our investments in technology have enabled us to expand the market base to grass-roots level. Combining technology and skilled manpower is helping us to reach out to every section of customers. We would not confine ourselves as a traditional bank. Last year, the Bank made significant investment in a new data center. This is part of the Bank’s strategy to ensure that all customers’ transactions are handled efficiently in a secure environment.

Your Bank is fully committed to develop the human resources as the crucial part for Company’s development. Human resources are important to gain a competitive edge over competition together with product expansion. Throughout the year we have conducted well planned training programmes with experts of the respective fields of the banking business. In the year 2009 a total of 8644 people were provided a total of 177,142 hours of training; on an average, each participant has received 57 hours of formal training. We are happy to inform you that the entire staff of your Bank is linked with the IT system, thereby enabling us to introduce e-learning modules for the members of staff to help them train themselves. HR department would continue to monitor and deliver upon training and development needs of our staff over the years. Development of skilled human resources is a core objective of the Bank.

As per Bangladesh Bank guidelines, to implement Basel-II BRAC Bank shall have to fulfill the required Paid Up Capital and Reserved Fund of Taka 400 crore within August 11, 2011 and the Paid Up Capital will be not less than Taka 200 crore and BRAC Bank shall also require to maintain a minimum Capital Adequacy Ratio (CAR) of at least 10% of Risk Weighted Assets (RWA) with Core Capital (Tier-1) not less than 5% of RWA. Whereas we have 607 Crore Paid Up and Reserved Fund and also maintain 12.69% of Risk Weighted Assets (RWA). In Tier-1 we have 10.26% Risk Weighted Assets and Tier-II 2.42%. As our Tier-II capital is not sufficient against our future business growth projection, we are going to issue Subordinated Convertible bond for raising fund.

From this year, your Bank has a dedicated team for developing the Service Quality. The team is dedicated to promote and implement service at a global standard on all levels. We see our customers as our guests. A service quality structure has been implemented throughout the organization. BRAC Bank Limited has taken many initiatives to reaffirm their commitment to service quality and customer satisfaction. “Joy of Banking” has been the initiative to make banking a joyful experience for both our guests and our personnel. We have promoted the same through our campaigns that reiterated our commitment to service quality. We are happy to report that ‘mystery shopping surveys’ carried out independently by reputed market-survey company have revealed a marked improvement in our service quality standards.

In recognition of our outstanding contribution in the banking sector of Bangladesh, last year BRAC Bank Limited received the prestigious 9th DHL-Daily Star Best Business Award in the “Best Financial Institution” category. We have also received “Certificate of Merit” from the Institute of Chartered Accountants of Bangladesh for the 9th ICAB National Awards for best Published Accounts and Reports 2008.

In line with our Triple-Bottom-Line approach, your Bank undertook various CSR activities last year. These activities spanned from health-care to supporting the cultural heritage of the country to supporting education-growth. As a bank committed to sustainable business, BRAC Bank has become a prestigious member of the Global Alliance for Banking on Values (GABV)-the only bank from South-Asia to be part of this international coalition. Global Alliance for banking on Values promotes ‘ethical banking’. It is part of a larger societal movement toward more social and environmental responsibility in the financial sector. This movement includes ethical investment, socially responsible investment, corporate social responsibility, and is also related to such movements as the fair trade movement, ethical consumerism, boycotting, etc. Ethical banks share a common set of principles, the most prominent being transparency and social and/or environmental aim of the projects they finance, Our annual report itself-as you can see-reinforces our care for the environment. Every small step will make this world greener by at least on more leaf: your bank seeks your continued support on this journey.

We strongly believe that 2010 will be another good year for BRAC Bank Limited. By adopting and implementing the most modern technology as well as having a dedicated & skilled management, we will be able to bring sustainable growth with improved asset quality that will maximize value for all the stakeholders.

I thank all my colleagues on the Board of Directors for their consistent guidance, support and leadership. The management and staff of BRAC Bank Limited deserve a heartfelt appreciation for their fervent dedication and hard work.

I am also grateful to all the regulatory boodles like the Bangladesh Bank, the Securities and Exchange Commission, the Registrar of Joint Stock Companies and Firms, Dhaka Stock Exchange and Chittagong Stock Exchange Limited, Central Depository Bangladesh Ltd. for all their support.

Finally, I thank you all once again for placing you trust in us. I am confident, with your support and cooperation, we will continue to strive to uphold the placed in us by all our stakeholders.