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Managing Director & CEO"s Review
Dear Respected Shareholders,

I feel privileged to share with you that in 2016 IFIC Bank celebrated the 40th anniversary of its establishment as a finance company. It has been four decades of successful journey towards matured dynamism. The Bank has reached some new heights in the year 2016 especially in capacity building, achieving breakthrough in groundbreaking deposit & lending products and remarkable growth in Net Profit after Tax. Banking sector passed a steady year in 2016 due to the political stability of the country. However, the sector faced challenges like continuous fall of rate of interest, deterioration of quality of assets, excess liquidity in the economy etc. However, relevant policies and risk management initiatives of regulatory authority as well as the Bank have helped us to achieve positive parameters.

Macroeconomic Scenario of Bangladesh

The Bangladesh economy has emerged as one of the most sustained growth economy in the world. Bangladesh economy recorded a 7.1% growth of GDP in FY16 compared to 6.6% in FY15. This is the first time that growth has exceeded 7.0% mark after persistent growth of around 6.0%. Per capita national income reached at USD 1,465 in FY16, up by USD 149 from previous fiscal year. Year-on-year inflation decreased to 5.9% in FY16 relative to 6.4% in FY15. Inflation has declined mainly due to reduction of commodity prices including fuel price in the international markets, satisfactory agricultural production in domestic level, prudent macroeconomic management etc. Domestic credit from the banking sector grew by 14.3% during FY16, significantly higher than 10.1% of FY15. Exports recorded a growth of 8.9% in FY16, significantly up from 3.1% in FY15. Import grew at a rate of 5.5% in FY16 compared with 3.0% growth in FY15. The inflows of remittances declined by 3.0% in FY16 compared with the positive growth of 7.5% in FY15. The slowdown in investment and construction works in the Middle East countries due to low oil prices is mainly responsible for the decline in remittance inflows. The trade deficit narrowed from USD 6,965 million in FY15 to USD 6,274 million in FY16. The overall balance of payments registered a surplus of USD 5,036 million in FY16 which was USD 4,373 million in FY15. The foreign exchange reserves stood at USD 30.16 billion at the end of FY16 representing around 8 months of prospective import coverage.

IFIC Bank Performance

Deposit of the Bank stood at BDT 160,155 million in 2016 against BDT 146,820 million in 2015, representing a growth of 9.08%. Loans and Advances increased to BDT 137,118 million in 2016 from BDT 123,269 million in 2015, posting a growth of 11.24%.

Import of the Bank was BDT 92,927 million in 2016 having 6.44% growth while Export of the Bank was BDT 94,410 million in 2016 having 1.74% decline. Total Remittance was BDT 21,335 million in 2016 having a fall of 5.34%. However, overall Foreign Exchange Business grew by 1.33% from BDT 205,924 million in 2015 to BDT 208,672 million in 2016.

Net Interest Income increased by 16.79% from BDT 3,746 million in 2015 to BDT 4,375 million in 2016 as well as Net Profit after Tax increased to BDT 1,214 million in 2016 from BDT 887 million in 2015, representing a growth of 36.88%.

NPL ratio of the Bank decreased to 5.29% in 2016 from 6.46% in 2015. Asset size of the Bank stood at BDT 197 billion in 2016 against BDT 178 billion in 2015.

Capital Adequacy

At the end of 2016, total Shareholders’ Equity stood at BDT 12,840 million, which is 10.18% higher than that of 2015. The Bank maintained Capital to Risk-weighted Asset Ratio (CRAR) of 11.25% under Revised Regulatory Capital Framework for Banks in line with Basel III as against minimum requirement of 10.625% set by Bangladesh Bank for the year ended December 31, 2016.

Risk Management

As a provider of banking and financial services, we actively manage risk as a core part of our day-to-day activities. All of our activities involve the analysis, evaluation, acceptance and management of risks or combinations of risks. IFIC conducts its operations by ensuring compliance with the Risk Management Guidelines which covers the core risks such as credit risk, asset liability management risk, foreign exchange risk, internal control and compliance risk, anti money laundering risk, information & communication technology risk.

Growth initiatives implemented in 2016
  • Up-gradation of MISYS Core Banking System and Trade Innovation Plus (TI Plus) and implementation of Bank Fusion (BF) Teller and Anti Money Laundering (AML) Solution named Suspicious Activity Module (SAM) & Watch List Checking (WLC) were completed successfully.
  • Implemented One Stop Service Model in 09 Branches for customers’ satisfaction in 2016 with an aim to extend the service in all branches of the Bank by June 2017.
  • Promoted collateral based Home Loan Product with very competitive interest rate in 2016 which received massive market response.
  • Introduced ‘Aamar Account’ – a unique Account where one can maintain his deposit balance with interest on daily product basis and at the same time one can avail overdraft facility up to a given limit as and when required.
  • Reduced dependency on large ticket deposits and emphasis given on increasing retail deposits base especially low cost CASA deposit.
  • Opened 5 new Branches at different locations of the country, making a total network of 134 Branches.


Our responsibilities towards the society

IFIC Bank has focused on the development of the communities in which we work and live. We play an important role in working with other companies, government and institutions to address key social and economic challenges. In 2016, we strengthened and deepened our efforts even more to help the communities. IFIC Bank undertook the following activities to address the requirement of people for making important contributions to the society:
  • The Bank has donated for establishing PROYASH School at Rangpur under the initiative of Bangladesh Army.
  • Students of the University of Dhaka receives stipend from IFIC Bank Trust Fund. The fund was further enriched in 2016.
  • The Bank donated Fund to Biswa Shahitya Kendra to promote educational activities.
  • IFIC made significant contribution by way of donation to Bangladesh Shooting Sports Federation.
  • The winners of IFIC Bank Shahitto Purosker-2014 received their Prizes from IFIC Bank.
  • The Bank distributed blankets among the distressed people in different districts.


Our commitments towards the employees

Bank is making relentless efforts to ensure career path of the employees and providing training to the employees at home and abroad to meet the skill gap and prepare them as successful leaders for the future. Bank also organizes various employee engagement programs to motivate the employees so that they can engage themselves towards the Bank. Along with competitive pay and allowances, IFIC Bank provides Staff House Building Loan, Staff Car Loan and Salary Overdraft as components of the compensation and benefit policy so that employees can enjoy a comfortable life. Bank ensures benefits to its employees by providing Provident Fund, Gratuity and Leave Encashment Facility. Bank offers hospitalization insurance and group life insurance facilities to ensure hospitalization and life coverage.

Commitments for 2017
  • Bank will introduce Centralization of Product Processing covering the areas like Trade, Credit & General Banking Operation.
  • Bank will intensely promote the newly introduced product- ‘Aamar Account’.
  • Bank will continue to give focus on promoting ‘Home Loan’ product.
  • Bank will complete the implementation of One Stop Service Model for all the branches.
  • Bank will grow with existing good clients and roll out new lines of business.
  • Bank will achieve long term sustainable growth by pursuing strategy of Balance Sheet and Liquidity Management.
  • Bank will give thrust on recovery drive for bringing down the NPL ratio.


Concluding Remarks

I am conveying my earnest gratefulness to the regulatory authorities especially Bangladesh Bank, Bangladesh Securities and Exchange Commission, Dhaka Stock Exchange and Chittagong Stock Exchange for their continuous support and assistance. I would like to express my gratitude and thanks to the members of the Board of Directors for their policy guidelines and adequate support to the Management to implement those. Thanks are due to our respected shareholders, valued customers and all other stakeholders for their trust and confidence in the Management of the Bank. Finally, gratitude to my colleagues of the Bank for their persistent effort and commitment.

M. Shah Alam Sarwar
Managing Director & CEO
Bank's Mission
Our Mission is to provide service to our clients with the help of a skilled and dedicated workforce whose creative talents, innovative actions and competitive edge make our position unique in giving quality service to all institutions and individuals that we care for.
We are committed to the welfare and economic prosperity of the people and the community, for we derive from them our inspiration and drive for onward progress to prosperity.
Bank's Vision
At IFIC, we want to be the preferred financial service provider through innovative, sustainable and inclusive growth and deliver the best in class value to all stakeholders.
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