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Background of the Company:

The present day banking structure has evolved over several decades. The far- reaching program of economic reform is being carried out at present towards efficient utilization of scarce resources and the development of private entrepreneurship. In a fast changing business environment, financial intermediaries are gradually being left to be guided by market forces rather than regulation. Competition is strengthened by the entry of new and innovative "providers "of financial services through the development of Money Market and Capital Market. Under the ongoing financial liberalization program, Prime Bank Limited emerges as a bank in private sector to operate in the commercial arena of Bangladesh. Values The Bank holds the following values: To have a strong customer focus and to builcla relationship based on integrity superior services and mutual benefit." To work as a team to serve the best interest of the group. To work for continuous business innovations and improvements. To value and respect people and make decisions based on merits. To provide recognition and rewards on performance.

Corporate Profile Registered office: Adamjee Court Annex Building-2 1 1 9 - 1 2 0 , MotijheelC/A

Dhaka- 1000, Bangladesh Cable: PRIMEBANK Phone: 9567265, 9570747-8 PABX Telex: 642459 PRIME BJ Fax: 88-02-9567230, 9560977, and 9566215 E-mail: Products and Services of PEL: Based on customer satisfaction, Prime Bank provides various products are services to its customers. PBL products and services are briefly as follows: Deposit Products Contributory Saving Scheme. Monthly Benefit Deposit Scheme. Special Deposit Scheme. Educational Deposit Scheme. Fixed Deposit Saving Deposit Account Short Term Deposit Account Foreign Currency Deposit Account Non Resident Taka Account Non Resident Foreign Currency Deposit Account (NFCD) Non Resident Investors Taka Account (NITA) Prime Bank Insured Fixed Deposit Scheme. Prime Bank Money Scheme

Multi Currency Account Loan Product Consumers Credit Scheme Lease Finance Hire-Purchase Small and Medium Enterprise Credit Scheme Loan against share & Securities. House Building Financing Scheme Financing Scheme for Contractors Computer Software Financing Scheme Prime Bank Master Card Credit Card Working Capital Financing Import Financing Export Financing Industrial and Project Financing Others Products/Services On Line Banking Services SWIEL Services Islamic Banking Locker Services Exchange Rate. L/C Delivery Services.

County's classified loan portfolio has been further soared to Tk.25,445.23 crore up till September-2002 from Tk. 23, 599.44 crore of December, 2001. As opposed to total loan portfolio, the share of percentage of total classified loan recorded to 31 .90% (approximately), which is much higher than the international standard of 8%. The quality of bank loan portfolio in Bangladesh is worse than that of many developing countries. Despite all negative indicators, some positive signals are giving lights of hopes for improvement in the domestic economy. Higher influx of foreign remittances, partial recovery in exports, cautionary containment of import payments, the modest growth of forex reserve, relatively stable currency, government borrowing checked and scrambling the revenue collection are the visible signs of recovery in the economy and these positive signals may fuel the development of economy of the country to some extent. The strong roots of MTBL are not hidden Despite weak global economy which sustained throughout 200^, Mutual Trust Bank Ltd. being the 3rd generation bank achieved most respectable growth for the year underreport and grounded strong roots for future growth. We have laid down the groundwork for us to go on growing in terms of quality and boost out market value since tough and bitter competition exists. We aim to boost profitability significantly in our private customer operations by means of excellent personalized services and strong sales forces.

The authorised and paid-up capital of the bank remains static as Tk.1000.OOM and Tk.200.00M respectively. In the year under review bank made an operating profit of Tk.181.19M through the network of eight branches. The last year operating profit was Tk.94.78M. Thus the growth in operating profit from last year is 91.17%. Total equity of the bank stood at Tk,320.02M and total assets rose to 7k.5832.10M as on 31 December, 200^. The capital adequacy ratio stood at 10.81% which is well within the Central Bank tolerance of 8% of risk weighted asset value. The deposit liabilities of the bank has made a note worthy progress. Last year total deposit of the bank was Tk.3357.82M. Due to asserted drive and relentless efforts made by the employees of the bank and public confidence that has been achieved by the bank through performance buildup during the last three years, the deposit of the bank reached to Tk.5158.11M registering a growth of 54% over last year deposit. In the total deposit composition, Fixed deposit remains higher as before. On the other small deposits on various" scheme have been increased geometrically in the year 2001, the small deposit under various schemes was Tk. 18.79M only, whereas in the year under review the deposit against schemes rose to Tk.101.22M, registering a splendid growth of 438.69%. It indicates various Shanchay Prokalpa introduced by the bank have created profound popularity in the market. In deposit mix, the cost free deposit of the bank also increased. Year before, the cost free deposit was Tk.456.24lvi and during the year

under review the component of cost free deposit stood at Tk.862.51M, the increase is about 89.05%. The loans and advances of the bank stood to Tk.3437.13M from Tk.1909.80M of last year, registering a growth of 79.97%. Achievement of this growth was possible only because of our pragmatic decision, business oriented policy and flexibility we made with the need of the client. In my last year's report to shareholders, I alluded that a promising client is the partner of progress for future growth and in view of the solidly anchored presence of bank customer relationship, it was possible for the bank to expand the asset portfolio at this level without any classified dot. This dynamic expansion of loan portfolio of the bank could be made only because of our pro business policy and selection of clients having proven good track record. Although we don't have any classified loans till 31 December, 2002; but the bank had to make 1% provision of Tk.15.72M against unclassified loans and advances as per Bangladesh Bank guidelines. The total provision against unclassified loans and advances now stood at Tk.35.00M upto 31 December, 2002. Non existence of classified loans speaks itself the high quality of the assets portfolio of the bank from its day one operation. During the year under review the term loan portfolio for project finances has been expanded from the last year operation. Apart from industrial

development, the project finance expansion will create new job opportunities for the unemployed new blood. As before foreign trade business played the significant sector for deploying funds for investment. From day one operation, bank largely deployed funds in foreign trade business to maximize the bank's profit. Keeping this in view, bank deployed its major portion in foreign trade business which in turn gave quick and profitable return and thus helped the bank for achieving the operating profit of Tk.181.19M.