Unlike many of our peers and competitors in financial services industry, City Bank remains
well capitalized, deposit-funded and extremely liquid. We have one of the largest and
broadest client bases in the industry. We have a diverse
collection of market-leading businesses that help
support one another through economic cycles. Our
capital management framework is intended to ensure
best composition capital in relation to business growth
and its judicious use through a mix of investment options.
The Authorized Capital of the Bank was Tk. 10.00
billion while its Paid Up Capital was Tk. 6.3 billion as
on December 31,2012. We are always keen to maintain
sufficient capital consistent with the Bank's risk profile,
Basell-II compliance and other regulatory requirements.
City Bank has maintained capital adequacy ratio at
11.7%, which is above the regulatory requirement of 10%.
During 2012, the Bank went for extensive renovation of our old branches with the aim
to serving the customers in a better environment. Expansion of ATM network in 2012
saw an addition of 41 new ATMs in different geographical locations. As part of the
strategic vision of the Bank, we initiated to enhance its service through putting in and
launching Cash Deposit Machines, new POS terminals, Internet Banking, AMEX
Cards Customer centers, 24 hour call center for our 600,000+ retail customers etc.
We are surely not immune to the impact on the consumers of a volatile economy;
however, we believe our consumer portfolios will continue to perform better than the
industry as a whole, particularly with regard to credit cards thanks to its diversified
range of products spanning across Amex, Visa and
MasterCard networks. We have already launched the
country's first B2B card, and also the Asia's first
hybrid debit card called Amex CityMaxx debit card,
which – amazingly – pays interest on the spent amount
and offers 5% cash back on shopping transactions.
Now we are in the process of launching Amex Platinum
card soon too.
City Bank has also renewed its focus on lending to
SMEs and agriculture sector in 2012. Using the branch
banking network and capitalizing on the various refinance
facilities and initiatives taken by the government, City
Bank's SME business segment is going to storm the
market in a big way soon. As such, the journey has
started already – during 2012, our strategy was focused on marketing the Bank's products to wider range of customers and providing working
capitaland term loan to different manufacturers, traders and service providers including
backward and forward linkage industry that fall into SME bracket.
We continued to be inspired by our employees. We are energized by what they bring to work
everyday and share with our clients and we are proud that they represent the Bank. It makes
us feel great to know that they, in turn, feel passionate about the work they do here. We now
have a team of 2,765 employees having a balanced mix of the young and the experienced.
At City Bank, we seek excellence – as an organization, for ourselves and for the
communities we serve. We actively participate in our neighborhoods by making positive
contribution through community development, financial education and volunteerism.
We believe, our success is tied directly to the successes of our communities. In 2012, we
dedicated nearly Tk 21.2 million to support the projects around the country related to
education sustainability and community development.
Recently the Bank became an IFC (International Finance Corporation) and FMO client, the
3rd such bank in the entire banking industry. In order to become their client, we had to go
through rigorous checks and due diligence undertaken by IFC and FMO. This in itself is a
big testimony to the bank's successful changeover into a global standard financial institution
in terms of policies, practices, culture and procedures.
In 2012, your Bank has been recognized as the 'Best Bank in Bangladesh for 2012' by
FinanceAsia for adopting global best practices. That was the first year of FinanceAsia's
extending the award into local bank category in Bangladesh.
Our shareholders are well aware that BSEC, through a promulgation on the issue of Corporate
Governance, inserted few new conditions for compliance by the listed companies within 31
December 2012. Our bank has successfully complied with all the provisions of the BSEC
notification except few, which are under consideration of the Board. Board of Directors has
agreed to comply the BSEC notification in regard to inclusion of independent directors and
accordingly taken steps to include a personality who will be acceptable to all the stakeholders.
To pass the test of time and competition, it is always important to reassess the business
model in light of current and anticipated changes. Being advised by the Board, the management
has undertaken the big leap in the "restructuring" direction
in the end of 2012. It has already presented a business
model restructuring plan to the Board, which was accordingly
approved. The implementation of the new business model
is currently underway.
Our shareholders shall be pleased to learn that the action
plan for the Bank in 2013 shall be focused on the following
priorities, to mention a few, which will eventually lead to
improvement and consolidation of the current KPIs:
- Continuing the diversification of credit portfolio in
SME, emphasis on retail, focus on SME agriloan
- Maintaining strong capital base
- Improving the deposit mix by undertaking efficient deposit
mobilization and by increasing the share of low cost deposit
- Focusing on non-fund based business
- Launching of "CityTouch" internet banking; and CityGems Priority Banking; and a
sophisticated platform of other alternate delivery channels by introducing drive-through
ATMs and by opening in-branch ATMs at all of our 102 branches
- Maintaining adequate level of liquidity through minimizing asset-liability mismatch
- Recovering substantial amount of past due loans
- Increasing the share of inward remittances by way of opening bank-owned remittance
- Strengthening internal control and monitoring by implementing PWC recommended
action steps under the BPR project
First of all, I like to extend my sincere thanks to our valued shareholders for their continuous
support and inspiration. My deepest gratitude goes to our regulators, specially, Bangladesh
Bank, Securities & Exchange Commission, Dhaka Stock Exchange, Chittagong Stock
Exchange, Registrar of Joint Stock Companies, Large Tax Payers Unit, VAT Commissionarate,
and External Auditors. My special thanks go to IFC for their financial assistance and technical
guidance in running the bank successfully. I would like to thank the CBL management team for
their passion and efforts to attain the corporate vision, mission and strategic objectives and, at
the same time, for ensuring that our core value remains consistent. My sincere note of gratitude
goes to our dynamic Board of Directors for their valuable and judicious policy support and
timely decisions all along. Wishing you all a more successful 2013.
Mr. Rubel Aziz
The City Bank Limited