Message from the Chairman
Bismillahir Rahmanir Rahim
Dear Shareholders,
Assalamu Alaikum.
On behalf of the Board of Directors and on my behalf, I am very pleased and honoured to welcome you all at the 99th Annual General Meeting of Commerce Bank Securities and Investment Limited (CBSIL).
I am very proud to express the fact that we have tried our best to maintain strong business ethics and transparency in every sphere of our operations. It is, however, a great privilege for me to present before you the Annual Report of CBSIL for the year 2024. This report is an attempt to reveal, how the journey was during 2024 in respect of the World Economy, Bangladesh Economy, Capital Market (both local and foreign) and last but not the least, the performance of the Company.
Overview of Bangladesh Economy:
The economy maintained the growth momentum registering a 8.15 percent growth of GDP in FY19 in a very challenging domestic economic environment. The growth rate of GDP over 8.00%, is quite remarkable where the projected growth of 'Emerging Market and Developing Economies’ was around 3.7% in 2019. According to the International Monetary Fund (IMF), Bangladesh is among the three fastest growing economies in the world, which is another thumping endorsement of the country's extraordinary growth momentum. Besides, Bangladesh has been ranked 41st among the world's largest economies in 2019, moving up two notches from last year's.
In Bangladesh, the population has risen at a rate of just 1 percent per year since 2014. This has meant that per capita incomes have grown considerably in recent years. Government debt as a share of GDP rose to 34.6 percent last year, up from 34 percent in 2018. Bangladesh’s economy will make one of the biggest jumps between 2020 and 2034 on the back of demographic dividend and rising per capita income, according to the World Economic League Table 2020. Economic growth in Bangladesh has been largely contributed by export earnings from the ready-made garments (RMG) sector; remittances sent by migrant workers; growth in the agricultural sector; expansion in Medium, Small and Micro Enterprises (MSMEs); decline in the rate of population growth; and the Government's safety net programmes.
Key features of Bangladesh economy during 2019-
-
Growth improved amid multifaceted challenges (GDP growth rate of 8.15%)
-
Yearend inflation increased marginally (Point to Point inflation rate stood at 5.59%, decreased by
11 basis points than that of the previous year). -
Total exports (f.o.b.) in 2019 witnessed 9.44% growth than that of previous year.
-
Workers' Remittance increased by 35.41% during 2019 than that of previous year.
-
FX reserves declined 1.62% (Standing at $ 32,689 mn.)
-
BB aligns Monetary Policy to boost economic growth amid potential socio economic upheavals.
-
Call money rate increased marginally and stood at 4.50% at the yearend compared to that of 0.58% of the previous year; i.e. Increasing by 58 basis points).
Performance of CBSIL :
The Company, in the backdrop of a challenging socio-economic situation, manages to earn an operating profit of Tk. 40.48 million and net profit after tax amounting to Tk. 23.54 million during the year 2019 compared to
Tk. 119.21 million and Tk. 22.03 million respectively of the previous year. We positioned the year ended as a year of significant challenges, specially, to maintain our achievements of the previous year. However, we could not manage so, as the DSE Broad Index (DSEX) fell by 932.71 points or 17.32 percent during 2019 against that of 858.88 points or 13.75 percent fell in 2018. Such continuous slide of market index, confounded the investors in general and the market intermediaries, like us, in particular. We expect a revival of the market in the year ahead. Net profit after tax and provision increased by 7% as well as earnings per share (EPS) compared to those of the previous year. 100% of doubtful income was not taken into account during 2019 like in 2018, as future safeguard to strengthen the financial capability of the Company. Besides, the Company also maintained 50% provision on bad loan & erosion against permissible 25% of the BSEC circular for future safeguard.
P
erformance Highlight Increased
/Decreased
Operating Profit = Tk. 40.48 mn. against Tk. 119.21mn. of the last year (66)%
N et profit after tax= Tk. 23.54mn. against Tk. 22.03mn. of the last year 7%
Total BOAs opened = 241 vis-à-vis 1568 of 2018 (85)%
T