SEBL Financial Statements 31 Dec 2018 PDF

Southeast Bank Limited
Auditor's Report and Consolidated & Separate

Financial Statements
as at and for the year ended 31 December 2018
g PRfi,4e ml='ttft
Pinaki & Company
Chantened Accountants
of SeruA
Independent Auditor's Report
To the Shareholders of Southeast Bank Limited
Report on the Audit of the Consolidated and Separate Financial Statements
Opinion
We have audited the consolidated financial statements of Southeast Bank Limited and its subsidiaries (the
"Group") as well as the separate financial statements of Southeast Bank Limited (the "Bank"), which comprise
the consolidated and separate Balance sheet as at 31 December 2018 and the consolidated and separate
statement of profit and loss, consolidated and separate statements of changes in equity and consolidated and
separate cash flow statements for the year then ended, and notes to the consolidated and separate financial
statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements of the Group and separate financial
statements of the Bank give a true and fair view of the consolidated Balance sheet of the Group and the
separate Balance sheet of the Bank as at 3l December 2018 and of its consolidated and separate statement of
profit and loss and cash flows for the year then ended in accordance with International Financial Reporling
Standards (IFRSs) as explained in note 2 to 3.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (lSAs). Our responsibilities
under those standards are further described in the Auditors' Responsibilities for the Audit of the Consolidated
and Separate Financial Statements section of our report. We remained independent of the Group and the Bank
in accordance with the International Ethics Standards Board for Accountants' Code of Ethics for Professional
Bank,
Accountants gESBA Code), Bangladesh Securities and Exchange Commission (BSEC) and Bangladesh
and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of
have obtained
Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we
is sufficient and appropriate to provide a basis for our opinion'
Key Audit Matters

in our audit
Key audit matters are those matters that, in our professional judgment, were of most significance
below the key audit
of the consolidated and separate financial statements of the current period. We summarize
procedures to address those matters
matters in arriving at our audit opinion above, together with our key audit
matters were addressed in
and, as required for public interest entities, our results from those procedures. These
the context of our audit of the consolidated and separate financial statements as a
whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters'
The key audit matters are discussed below together with an explanation of how the
risk and our audit response
was tailored to address these specific areas.
I
Dhoko-l OO0, Bonglodesh
Regislered Office : AHSANDELL, 2/A, Mymensingh Rood (2nd Floor), Shohbog,
224, -j OO:OZ, E-moil : pinoki-co@yohoo.com website: www'pinoki'com'bd
Tel # 9 66 09 44, 9 66'509 5, Cell: 0 1 3 1 7 2O1 01 7 1 1
PRfi{qs ml'Il'ft Chantened Accountants
Pinaki & Company ofSerukt
All key audit matters are applicable to both the group and parent company.
Key audit matters: Risks: Our responses:
(D Provision for loans and The financial statement risk arises We established our audit approach
advances: particularly from estimation over the individual provision for
uncertainties in the calculation of control and substantive tests
As of the reporting date, the individually assessed provision on considering the following:
Group reports loans and loan which are based on assumptions r the accuracy of data input into
and scenarios i.e. probability of the system used for credit
advances/ investments BDT grading and the approval of
default, ability to repossess collateral
26,7 67 .1 6 crore representing 7 0%o
credit facilities.
and recovery etc.
of total assets; and provisions As part of our risk assessment, we . the ongoing monitoring and
regarding loan and advances of identified the following judgments discovery of loans displaying
BDT 485.50 crore represertts which could give rise to material indicators of provision and
33% of bank's total operating misstatement or management bias: detection of classified and
unclassified status on a timely
income. . For individualty assessed basis.
provisions, the measurement
Refer to note no 10, I I and 21.10 of the provision is We tested the design and oPerating
to the financial statements. dependent on the reasonable effectiveness of key controls
valuation of collateral, focusing on the following:
estimates of exit values and
the timing of cash flows.
. Tested the credit appraisal,
loan disbursement procedures,
I Completeness and timing of monitoring and provisioning
recognition of provision of process;
loans in accordance with
. Identification of loss events,
criteria set out in BRPD including early warning and
circular no. 14 & 1512012, default warning process.
t9 12012, 0512013, 161201 4,
. Reviewed quarterly
0812015, 1512017 .
Classification of Loans (CL);
Our substantive Procedures in

relation to the provision for loans
and advances portfolio comPrised
the following:
. Reviewed the adequacy of the
company's general and
specific provisions;
. Assessed the methodologies
on which the Provision
amounts based, recalculated
the provisions and tested the
completeness and accuracY.
2
Dhoko-1000, Bonglodesh
Registered Office : AHSANDELL, 2/A, Mymensingh Rood (2nd Floor) , Shohbog,
06302' : pinoki-co@yohoo.com website: www.pinoki'com'bd
Tel # 9 66 09 44, I 66'509 5, Cell : 0 I 3 1 7'201 224, O1 7 1 1 1 E-moil
Pmft qs mlE"ttft Chantened Accountants
Pinaki & Company eus olStnia
. In the tripartite meeting dated

21.04.2019 a discussion was
made on fixation of ultimate
provision for investment and
adequate provision was
maintained unanimously.
Our Results: Finally assessed the

appropriateness and presentation of
disclosures against relevant
accounting standards and
Bangladesh Bank guidelines.
Key Audit Matters: Risks: Our Responses:
(ii) Measurement of deferred tax pss6gnilisn and measurement of We conducted a risk assessment to
assets/liabilities: deferred tax assets contain judgment obtain an understanding of the
and objective estimates regarding relevant tax laws and regulations
The Bank reported net deferred tax ftr1u1s taxable profit and the usability considering the following:
liability of BDT 114.499 crore as at of unused tax losses and tax credits. . evaluation of the policies used
31 December 2018. for recognition and
For significant accounting policies The significant risk arises from measurement of deferred tax
and critical accounting estimates for estimation of
future usability of the assets in accordance with IAS
benefits. Such estimation required in 12.
the recognition and measurement of
deferred tax assets, we refer to note relation to deferred tax assets as their . test of design, implementation
3.16.2 of the consolidated financial recoverability is
dependent on and operating effectiveness of
forecasts of profitability available in internal controls with resPect to
statements "significant Accounting
Policies" (section "Tax Expense"). near future. recognition of deferred tax
assets.
Refer to note no 20,21 and 21.3.2 to
. the computation of deferred tax
liabilities/assets bY aPPlYing
the consolidated financial
appropriate provisions of tax
statements. law to scheduled reversals
particularlY the Potential tax
rates applicable at the time of
expected reversals.
. the strategy's compliance with
the tax laws.
Our Result: Based on the results of

our key controls testing and
substantive audit Procedures we
consider recognition and
measurelnent of deferred tax liability
in particular regarding the
assumptions and Parameters to
develop the taxable Profit and
usability of tax losses and credits to
be reasonable.
Regislered Office : AHSANDELL, 2/A, Mymensingh Rood (2nd Floor), Shoh bog, Dhoko-l 000, Bonglodesh
t.i* goo-0st4,966-5095, Cell: 0l 317'201224, olzl 1-106302, E-moil : pinoki-co@yohoo.com website: www.pinoki.com'bd
Pmfi,4s mtu'fl'ft Chantened Accountants
Pinaki & Company of Senia
Key Audit Matters: Risks: Our responses:

(iii) Carrying value of investments Recoverability of the foreign We focused on the appropriateness
in subsidiary(s) by the Bank: investment is generally considered a of the application of value in use
high risk matter. However, due to the model, the key assumptions used in
The Bank has invested BDT 548.99 materiality of the investment in the
the model, the reasonably possible
crore in equity shares of its context of the parent company's
alternative assumptions, particularly
subsidiary Southeast Bank Capital financial statements, this is
where they had the most impact on
Services Limited (in Bangladesh). It considered to be the area that had the
focus of our overall parent the value in use calculation.
has also invested in foreign great cornpany audit.
subsidiaries namely Southeast We compared the carrying amount of
Financial Services (UK) Ltd, the total investment balance with the
relevant subsidiary's balance sheet to
Southeast Exchange Company
identify whether their net assets were
(South Africa) Pty Ltd and Southeast
in excess of their carrying amount
Financial Services (Australia) Pty and assessed historical financial
Ltd. As at 3l December 2018 the performance.
carrying value of the investment in
foreign subsidiaries was BDT 6.51
crore. Total investment in Our results: We considered the
subsidiaries wasBDT 555.50 which company's assessment of the
represents lYo of the Bank's total recoverability of the investment in
subsidiaries to be acceptable.
assets.
Refer to note no 15, 15.3 and 15.4 to

the consolidated financial
statements.
Key Audit Matters: Risks: Our Responses:
(iv) IT systems Internal lT systems and controls due to the Our procedures included:
and
Controls pervasive nature and complexity of
the IT environment, the large volume We tested a sample of keY controls
in operating over the information
The Group's key financial of transactions Processed and technology in relation to financial
accounting and reporting processes numerous locations dailY
the
are highly dependent on the reliance on automated and IT accounting and rePorting systems,
including system access and system
automated controls over the Group's dependent manual controls.
information systems and as such
change management, Program
there exists an inherent risk that IT Controls over Information
SYstem development and computer
control deficiency could result in the may be carried out bY
IT Personnel, operations.
financial accounting and reporting users of the system, a separate
being materially misstated. control effect on Processing of We obtained management's

transactions in application systems evaluation of the access rights
Refer to note no 3.20,69.1 and 69.2 and also ineffective
controls maY granted toapplications relevant to
to the financial statements. have a risk of misstatements at financial accounting and reporting
application systems. systems. We also assessed the
operating effectiveness of controls
over granting, removal and
appropriateness of access riglits.
4
Dhoko-,l000, Bonglodesh
Regislered Office : AHSANDELL, 2/A, Mymensingh Rood (2nd Floor) , Shohbog,
06302' E-moil : pinoki-co@yohoo.com website: www.pinoki'com'bd
Iel # 9 66-09 44, 9 66-509 5, Cell : 0 I 3 1 7'201 224, O17 1 1 1
PFrft qe csl='ltft Chantened Accountants
Pinaki & Company of Seniu
We reviewed the System of Internal

Control which is designed to manage
all the risks of failure to a reasonable
level and this Systern provides
reasonable assurance of effective and
efficient operations covering all
controls including financial &
operational controls, reliability of the
financial information, compliance
with applicable laws & regulations,
adherence to management policies,
safeguarding of Bank's Assets,
prevention & detection of fraud and
errors and accuracy and
completeness of the accounting
records.
We checked standards over systetns

design, programming and
documentation, segregation of duties
so that those responsible for design
are not responsible for testing and
instal lation procedures.
Our results: We considered the user

access management, segregation of
duties and change management
controls in relation to financial
accounting and reporting systems to
be acceptable.
Responsibilities of Management and Those Charged with Governance for the Consolidated and Separate
Financial Statements and Internal Controls
statements of the
Management is responsible for the preparation and fair presentation of the consolidated financial
with IFRSs as explained in note 3'21 and
Group and also separate financial statements of the Bank in accordance
for such internal control as management determines is necessary to enable the preparation of consolidated
and
whether due to fraud or error' The Bank
separate financial statements that are free from material misstatement,
the Management to ensure
Company Act, l99l (amended upto 2018) and the Bangladesh Bank Regulations require
control and risk management functions of the Bank. The Management is also
effective internal audit, internal
report to Bangladesh
required to make a self-assessment on the effectiveness of anti-fraud internal controls and
Bank on instances offraud and forgeries.
Registered office: AHSANDELL.2/A, Mymensingh Rood (2nd Floor), shohbog, Dhoko-,l000, Bong lodesh
E-moil : pinoki-co@yohoo.com website: www. pinoki.com. bd
Tel # 966-0944,966-5095, Cell: 0l 317-201224, O1711-106302,
PHffi,qe ml,'ttft Chantened Accountants
Pinaki & Company of Seruia
In preparing the consolidated and separate financial statements, management is responsible for assessing the
Group's and the Bank's ability to continue as a going concem, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to liquidate the Group
and the Bank or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's and the Bank's financial reporting
process.
Auditor's Responsibilities for the Audit of the Consolidated and Separate Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated and separate financial statements
as a whole are free from material misstatement, whether due to fraud or error. and to issue an auditor's report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit
conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these consolidated and separate
financial statements
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional
skepticism throughout the audit.
We also:
r Identify and assess the risksof material misstatement of the consolidated and separate financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery. intentional omissions, misrepresentations, or the override of internal control.
. Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are
appropriate in the circumstances.
o Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and
related disclosures made by management'
. Conclude on the appropriateness of management's use of the going concern basis of

accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may
going concern' If we conclude
cast significant doubt on the Group's and the Bank's ability to continue as a
that a material uncertainty exists, we are required to draw attention in our auditor's report
to the related
disclosures in the consolidated and separate financial statements or, if such disclosures
are inadequate, to
of our auditor's
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date
report. However, future events or conditions rnay cause the Group and the Bank to cease to continue as a
going concern'
Office : AHSANDELL, 2/A, Mymensingh Rood (2nd Floor) , Shohbog, Dhoko-1000,

Bonglodesh
R.egistcred
OI 317-201224,01711-106302, E-moil : pinoki-co@yohoo.com website: www.pinoki'com'bd
rel # 966-0944,966 5O95, Cell:
g PHrfr qe ml,'flft
Pinaki & ComPanY
Chantened Accountants
'ews oJ Seruiu
o Evaluate the overall presentation, structure and content ofthe consolidated and separate financial statements,
including the disclosures, and whether the consolidated and separate financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
. Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the group audit. We remain solely responsible
for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any significant deficiencies in internal controlthat
we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical
other matters that may
requirements regarding independence and to communicate with them all relationships and
reasonably be thought to bear on our independence and where applicable, related safeguards.
that were of
From the matters communicated with those charged with governance, we determine those matters
period and are
most significance in the audit of the consolidated and separate financial statements of the current
law or regulation precludes
therefore the key audit matters. We describe these matters in our auditors' report unless
a matter should not
public disclosure about the matter or when, in extremely rare circumstances, we determine that
be expected to
be communicated in our report because the adverse consequences of doing so would
reasonably
outweigh the public interest benefits of such communication'
Report on other Legat and Regulatory Requirements

the Bank Company Act,
In accordance with the Companies Act, 1994,the Securities and Exchange Rules 1987,
Bank, we also report that:
1991(amended upto 2018) and the rules and regulations issued by Bangladesh
(D We have obtained all the information and explanations which to the best
of our knowledge and belief were
necessary for the purpose ofour audit and made due verification thereof;
basis stated under the Auditor's

(ii) To the extent noted during the course of our audit work performed on the
financial statements of the Group
Responsibility section in forming the above opinion on the consolidated
and the separate financial statements of the Bank and considering
the reports of the Management to
Bangladesh Bank on antifra.ud internal controls and instances of
fraud and forgeries as stated under the
control:
Management's Responsibility for the financial statements and internal
(a) Internal audit, internal control and risk management arrangemel-lts of the Group as disclosed in the
financial statements appeared to be materially adequate;
(b) Nothing has come to our attention regarding material instances of forgery or irregularity or
by employees of the Group and its
administrative error and exception or anything detrimental committed
related entities {other than matters disclosed in these financial statements};
7
Dhoko-l0OO, Bonglodesh
Office : AHSANDELL, 2/A, Mymensingh Rood (2nd Floor), Shohbog,
R.egistered
o1711 J 06302, E-moil : pinokl-co@yohoo'com website: www'pinoki'com'bd
Iel # 966-0944,966 5O95, Cell: Ol 317'201224,
Pmfr,{e ml-'ttft Chantened Accountants
Pinaki & ComPanY of Senia
(iii) Financial statements of Southeast Bank Limited and its subsidiaries in Bangladesh, Southeast Bank Capital
Services Limited have been audited by us and in outside Bangladesh namely, Southeast Financial Services
(UK) Ltd have been certified by Jahan & Co., Chartered Management Accountants and Southeast Exchange
Company (South Africa) Pty Ltd have been audited by G.L. PALMER AND COMPANY, registered
auditors and Southeast Financial Services (Australia) Pty Ltd. and have been properly reflected in the
consolidated financial statements (note no. I '7);
Bank so far
(iv) In our opinion, proper books ofaccounts as required by law have been kept by the Group and the
'
as it appeared from our examination of those books;
in
(v) The records and statements submitted by the branches have been properly maintained and consolidated
the financial statements;
The consolidated balance sheet and consolidated profit and loss account together with
(vi) the annexed notes
deatt with by the report are in agreement with the books of account and returns;
year;
(vii) The expenditures incurred were for the purpose of the Bank's business for the
of the Bank have

(viii) The consolidated financial statements of the Group and the separate financial statements
standards as well as related
been drawn up in conformity with prevailing rules, regulations and accounting
-
guidance issued by Bangladesh Bank;
in our opinion, doubtful of

(ix) Adequate provisions have been made for advance and other assets which are
recovery;
and found satisfactory;

(x) The information and explanations required by us have been received
and spent over 8,200 person hours; and

(xi) We have reviewed over 800/o of the risk weighted assets of the Bank
Asset Ratio (cRAR) as required by Bangladesh Bank has been

maintained
(xii) capital to Risk-weighted
adequatelY during the Year.
Pr;o* Dat.
Pinaki Das, FCA
Pinaki & ComPanY
Chartered Accountants
Dhaka,
Dated : 30 APril 2019
Shohbog, Dhoko-1000, Bonglodesh

R.egisleredOffice : AHSANDELL, 2,/A, Mymensingh Rood (2nd Floor),
gaoogtt,966-5095, Cell: ol 317'201224, o1711 ]roosoz, E-moil : pinoki-co@yohoo'com website: www'pinoki'com'bd
rci*
Southeast Bank Limited and its Subsidiaries
Consolidated Balance Sheet
as at 31 December 2018
2018 2017
Note Taka Taka
PROPERTY AND ASSETS
Cash 4
In hand (including foreign currencies) 3,598,852,097 3,010,982,975
Balance with Bangladesh Bank and its agent banks
(including foreign currencies) 17,916,575,574 17,968,153,354
21,515,427,671 20,979,136,329
Balance with other banks and financial institutions 5
In Bangladesh 3,984,794,486 3,196,881,943
Outside Bangladesh 2,449,639,553 1,082,725,811
6,434,434,039 4,279,607,754
Money at call and on short notice 7 6,897,100,000 3,643,950,000
Investments 8
Government 50,963,038,896 50,204,799,973
Others 14,646,513,537 12,706,244,499
65,609,552,433 62,911,044,472
Loans and advances/investments 10
Loans, cash credit, overdrafts etc./investments 255,400,659,122 223,657,502,019
Bills purchased and discounted 12,270,968,683 10,659,214,310
267,671,627,805 234,316,716,329
Fixed assets including premises, furniture and fixtures 12 9,337,295,160 9,321,796,126
Other assets 14 4,110,241,772 3,835,803,180
Non-banking assets - -
Total assets 381,575,678,880 339,288,054,190
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks, financial institutions and agents 16
Subordinated bond 11,800,000,000 7,400,000,000
Other borrowings 11,211,700,343 10,181,648,728
23,011,700,343 17,581,648,728
Deposits and other accounts 18
Current/Al-wadeeah current accounts and other accounts 40,472,065,762 35,511,525,367
Bills payable 4,494,551,361 4,933,769,345
Savings bank/Mudaraba savings bank deposits 27,259,920,347 23,896,582,534
Fixed deposits/Mudaraba fixed deposits 226,108,257,117 205,486,197,802
298,334,794,587 269,828,075,048
Other liabilities 20 32,102,455,720 26,044,632,850

Total liabilities 353,448,950,650 313,454,356,626
Capital/shareholders' equity
Paid up capital 22.2 10,544,927,020 9,169,501,760
Statutory reserve 23 10,094,153,565 9,170,000,000
Revaluation reserve 24 4,360,801,902 4,534,239,054
Other reserve 25 247,650,000 247,650,000
Foreign currency translation reserve 26 (28,918,605) (14,142,765)
Retained earnings 27 2,898,043,836 2,716,398,712
Total shareholders' equity 28,116,657,718 25,823,646,761
Non-controlling interest 29 10,070,512 10,050,803
Total liabilities and shareholders' equity 381,575,678,880 339,288,054,190
9
Consolidated Balance Sheet
2018 20\7
Note Taka Taka
OFF.BALANCE SHEET ITEMS
Contingent liabilities
Acceptances and endorsements 30.1 63,853,762,984 57,138,532,985
Letters of guarantee s0.2 19,197,993,041 15,924,963,164
lrrevocable letters of credit 30.3 36,374,559,306 44j95,137,436
Bills for collection 30.4 24,664,926,813 22,666,586,856
Other contingent liabilities 30.5 1 .413.684.000 1,744.473.000
Total contingent liabilities '145,504,926,144',141,669,693,441
Other commitments
Documentary credits and short term trade-related transactions
Forward assets purchased and forward deposils placed 827,10',t,200
Undrawn note issuance and revolving underwriting facilities
Undrawn formal standby facilities, credit lines and other commitments
Total other commitments 827,101,200
Total off-balance sheet items including contingent liabilities 145,504,926,144 142,496,794,641
The annexed notes 1 to 71 form an of these financial statements.
&aF
ffi \
Signed in terms of our separate repoft of even date
U,
Prrr*t Company
Pinaki&
Dhaka,
Date : 30 April 2019 Chartered Accountants
10
Consolidated Profit and Loss Account
for the year ended 3l December 2018
2018 2017
Note Taka Taka
lnterest income/profit on investments 32 23,977,837.107 17,400,550,075

lnterest paid/profit shared on deposits and borrowings etc. 34 (8.777.897.307\ (13.372.859.997)
Net interost income/net profit on investments
lnvestment income 36 5,129,753,568 5,
Commission, exchange and brokerage 38 3,652,775,278 3,462,929,452
Other operating income 40 7
9,761,976,731 9,905,353,314
Total operating income (A) 14,961,916,531 13,933,043,392
Salaries and allowances 2,026,52',t,807 1,880,629,864

Rent, taxes, insurance, electricity, etc. 44 1,031,566,389 931,624,353
Legal expenses 1,299,331 1,832,217
Postage, stamp, telecommunication, etc. 46 182,353,593 176,224,992
Stationery, printing, advertisements, etc. 48 165,642,288 149,545,742
Managing Director's salary and fees 50 10,072,000 10,037,423
Directors'fees 51 2,926,099 3,785,203
Auditors'fees 53 1,847,371 1,906,893
Depreciation and repair 54 476,254,631 455,388,535
Other expenses 56 1 900 1,259,769,572
Total operating expenses (B) 4,870,744,794
Profit before provision (C=A-B) 9,782,995,',122 9,062,298,598
Provision for loans and advances/investments 21 .1
General provision (119.21 1 ,010,610,024
Specific provision 781
4,855,075,924 4,791,934,545
Provision for diminution in value of investments 21.7 413,060,983 (217,213,998)
Other provisions 21.5 (153.800.000) 305,500,000
Total provision (D) 5,114,336,907 4,880,220,547
Total profit before taxation (E=C-D) 4,668,658,214 4,182,078,051
Provision for taxation 58
Current 2,230,449,370
Deferred 1 1 332
Net profit after taxation 2,473,208,84 1,168,628,78'l
Net profit after taxation attributable to:

Equity holders' of the Bank 2,473,189,135 1 ,"t 68,581 , 1 38
Non-controlling interest 19,709 47.643
Net profit after taxation 2,473,208,844 1,168,628,781
Appropriations
Statutory reserve 23
924,153,565
Retained surplus during the year 1,'!68,628.781
Earnings per share (par value 64 2.35
The annexed notes 1 to 71 form pad of these financial statements.
\
$
V q'*\ffi$hT.J
Signed in terms of our separate report of even date
Q'-,'M-
Pinaki& Company
Dhaka,
11
Consolidated Cash Flow Statement
for the year ended 31 December 2018
2018 2017
Note Taka Taka
A. Cash flows from operating activities:
Interest receipts in cash 28,773,552,446 22,799,565,274

Interest payments (17,355,370,160) (13,037,924,621)
Dividend receipts 178,893,878 246,591,937
Fees and commission receipts in cash 38 3,652,775,278 3,462,929,452
Recoveries on loans previously written-off 404,812,584 154,213,601
Cash payments to employees (2,036,593,807) (1,854,001,450)
Cash payments to suppliers (143,129,691) (149,511,264)
Income taxes paid (2,194,287,059) (2,647,358,679)
Receipts from other operating activities 60 979,305,053 871,775,465
Payments for other operating activities 62 (2,479,049,698) (2,345,344,075)
Operating profit before changes in operating assets and liabilities (i) 9,780,908,823 7,500,935,640
Increase (decrease) in operating assets and liabilities

Sale of trading securities 1,723,256,168 4,714,880,794
Purchase of trading securities (2,348,147,650) (9,868,562,519)
Loans and advances to customers (35,930,567,970) (43,819,951,511)
Other assets (189,426,865) (742,818,232)
Deposits from other banks 1,030,051,615 2,210,013,646
Deposits from customers 27,230,358,562 39,519,710,822
Other liabilities 2,253,081,234 2,200,804,534
Cash generated from (used in) operating assets and liabilities (ii) (6,231,394,905) (5,785,922,466)
Net cash flows from operating activities (A=i+ii) 3,549,513,918 1,715,013,174
B. Cash flows from investing activities:
Proceeds from sale of securities 54,654,139,635 85,715,949,901

Payments for purchase of securities (54,337,993,353) (83,124,735,925)
Purchase of fixed assets (372,391,753) (719,836,645)
Sale of fixed assets 3,811,056 7,842,971
Cash generated from (used in) investing activities (B) (52,434,415) 1,879,220,302
C. Cash flows from financing activities:
Receipts from issue of loan capital & debt security 5,000,000,000 -

Payments for redemption of loan capital & debt security (600,000,000) -
Dividends paid - (1,833,900,352)
Payment against lease obligation (2,477,131) (8,204,713)
Receipts from issue of ordinary shares - -
Cash generated from (used in) financing activities (C) 4,397,522,869 (1,842,105,065)
D. Net increase (decrease) in cash and cash equivalents (A+B+C) 7,894,602,372 1,752,128,411
E. Effects of exchange rate changes on cash and cash equivalents 22,040,234 6,919,829
F. Cash and cash equivalents at beginning of the period 28,907,035,123 27,147,986,883
G. Cash and cash equivalents at end of the period (D+E+F) 36,823,677,730 28,907,035,123
Cash and cash equivalents at end of the period represents

Cash in hand (including foreign currencies) 4 3,598,852,097 3,010,982,975
(including foreign currencies) 4 17,916,575,574 17,968,153,354
Balance with other banks and financial institutions 5 6,434,434,039 4,279,607,754
Treasury bills 9.1.1 1,971,577,720 -
Prize bond 9.1.1 5,138,300 4,341,040
36,823,677,730 28,907,035,123
12
Consolidated Statement of Changes in Equity
For the year ended 31 December 2018
Revaluation Other Translation Retained Non-controlling Total equity

Paid up capital Statutory reserve Total
Particulars reserve reserves reserve earnings interest of the Group
Taka Taka Taka Taka Taka Taka Taka Taka Taka
Balance as at 1 January 2018 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 (14,142,765) 2,716,398,712 25,823,646,761 10,050,803 25,833,697,564
Changes in accounting policy/ Prior year adjustments - - - - - - - - -
Restated balance 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 (14,142,765) 2,716,398,712 25,823,646,761 10,050,803 25,833,697,564
Surplus/deficit on account of revaluation of properties - - - - - - - - -

Surplus/deficit on account of revaluation of investments - - (173,437,152) - - - (173,437,152) - (173,437,152)
Currency translation differences - - - - (14,775,840) 8,034,814 (6,741,025) - (6,741,025)
Net gains and losses not recognized in the income statement - - (173,437,152) - (14,775,840) 8,034,814 (180,178,177) - (180,178,177)
Net profit for the period - - - - - 2,473,189,135 2,473,189,135 19,709 2,473,208,844

Cash dividend - - - - - - - - -
Issue of share capital/ Bonus share 1,375,425,259 - - - - (1,375,425,259) - - -
Appropriation made during the year
Statutory reserve - 924,153,565 - - - (924,153,565) - - -
Balance as at 31 December 2018 10,544,927,020 10,094,153,565 4,360,801,902 247,650,000 (28,918,605) 2,898,043,836 28,116,657,718 10,070,512 28,126,728,230
Balance as at 31 December 2017 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 (14,142,765) 2,716,398,712 25,823,646,761 10,050,803 25,833,697,564
13
Balance Sheet
2018 2017
Note Taka Taka
PROPERTY AND ASSETS
Cash 4.1
In hand (including foreign currencies) 3,598,790,655 3,010,980,173
(including foreign currencies) 17,916,575,574 17,968,153,354
21,515,366,229 20,979,133,527
In Bangladesh 3,984,794,486 3,196,881,943
Outside Bangladesh 2,272,907,523 965,226,853
6,257,702,009 4,162,108,796
Investments 9
Government 50,963,038,896 50,204,799,973
Others 11,920,717,298 10,118,368,557
62,883,756,194 60,323,168,530
Loans and advances/investments 11
Loans, cash credit, overdrafts etc./investments 252,933,241,876 221,191,785,619
Bills purchased and discounted 12,270,968,683 10,659,214,310
265,204,210,559 231,850,999,929
Fixed assets including premises, furniture and fixtures 13 8,782,363,746 8,708,569,268
Other assets 15 9,554,422,290 9,241,315,075
Non - banking assets - -
Total assets 381,094,921,027 338,909,245,125
Liabilities
Borrowings from other banks, financial institutions and agents 17
Other borrowings 11,157,491,516 10,181,648,728
22,957,491,516 17,581,648,728
Bills payable 4,494,551,361 4,933,769,345
298,320,586,377 269,833,088,669

Paid up capital 22.2 10,544,927,020 9,169,501,760
Revaluation reserve 24 4,360,801,902 4,534,239,054
Other reserve 25 247,650,000 247,650,000
Total shareholders' equity 28,051,339,079 25,761,744,012
Total liabilities and shareholders' equity 381,094,921,027 338,909,245,125
14
Balance Sheet
2018 2017
Nofe Taka Taka
OFF-BALANCE SHEET ITEMS
Letters of guarantee 30.2 19,197,993,041 't5,924,963,164
lrrevocable letters of credit 30.3 36,374,559,306 44,195,137,436
Bills for collection 30.4 24,664,926,813 22,666,586,856
Other contingent liabilities 30.5 1.413.684.000 1.744,473.000
Total contingent liabilities 145,504,926,144 141,669,693,441
Other commitments
Documentary credits and short term trade-related transactions
Forward assets purchased and forward deposits placed 827,101,200
Undrawn note issuance and revolving underwriting facilities
Undrawn formal standby facilities, credit lines and other commitments
Total other commitments 827,10'.1,200
Total off-balance sheet items including contingent liabilities 145,504,926,',t44 1 1
The annexed notes 1 to 71form an integra of these financial statements.
Shn"A
Director Managing Di
Signed in terms of our separate report of even date
Dhaka, P;^,r
Pinaki & Company
Date : 30 April 2019
Chartered Accountants
'15
Profit and Loss Account
2018 20L7
Note Taka Taka
lnterest income/profit on investments 33 23,951,689,857 17,384,904,816

lnterest paid/profit shared on deposits and borrowings etc. 35 867 1 1
Net interest income/net profit on investments

lnvestment income 37 5.062.02?.727 5,485,830,524
Commission, exchange and brokerage 39 3,538,71 2,1 50 3,360,679,342
Other operating income 41 821
Total operating income (A) ,707
Salaries and allowances 43 '1,992,049,030 1,853,318,403

Rent, taxes, insurance, electricity, etc. 45 1,015,140,607 917,262.049
Legal expenses 1,293,220 1 ,553,1 37
Postage, stamp, telecommunication, etc. 47 181 ,005,852 175,303,570
Stationery, printing, advertisements, etc. 49 162,614,460 147,315,550
Managing Oirector's salary and fees 50 10,072,000 10,037,423
Directors'fees 52 2,718,099 3,575,203
Auditors'fees 1,000,000 1,345,000
Depreciation and repair of bank's assets 55 413,975,642 396,062,258
Other expenses 57 1.208.640.252 1,229A22.032
Total operating expenses (B) 4,988,509,1 63 4,735,194,625
Profit before provision (C=A-B) 9,735,'104,731 8,939,129,082
Provision for loans and advances/investments 21.1
General provision (119,210,024) 1 ,010,6'10,024
Specific provision 4,974,285,948 3.781.324.521
4,855,075,924 4,791,934,54s
Provision for diminution in value of investments 21.7.1 4'13,060,983 (2s6,602,1 66)
Other provisions 21.5 (1 53,800,000) 305,500,000
Total provision (D) 5,'t 14,336,907 4,840,832,379
Total profit before taxation (C-D) 4,620,767,824 4,098,296,703
Provision for laxation 59
Current 2,200,000,000 2,830,000,000
Deferred (35,000,000) 150,000,000
2,165,000,000 2,980,000,000
Net profit after taxation @-:-Tmros'zo'
Appropriations
Statutory reserve 23
Retained surplus during the year 1,531,614,2s9 1,118,296,703
Earnings per share (par value 65 2.33 1.06
The annexed notes 1 to 71 form an th e se fi n an ci al statements.
Managing Director
I
Signed in terms of our separate reporl of even date
Dhaka,
Pr;*-Ur-
Pinaki & Company
16
Cash Flow Statement
for the period ended 31 December 2018
2018 2017
A. Cash flows from operating activities: Note Taka Taka
Interest receipts in cash 28,747,405,196 22,783,920,015

Interest payment (17,216,299,888) (13,026,594,645)
Dividend receipts 130,239,122 194,053,603
Fees and commission receipts in cash 39 3,538,712,150 3,360,679,342
Recoveries on Loans previously written-off 404,812,584 154,213,601
Cash payments to employees (2,002,121,030) (1,826,689,989)
Cash payments to suppliers (140,101,863) (147,281,073)
Income taxes paid (2,172,386,062) (2,630,312,076)
Receipts from other operating activities 61 946,913,502 821,156,590
Payments for other operating activities 63 (2,439,278,046) (2,310,221,404)
Operating profit before changes in operating assets and liabilities (i) 9,797,895,665 7,372,923,964
Increase (decrease) in operating assets and liabilities

Sale of trading securities 1,723,256,168 2,438,255,841
Purchase of trading securities (2,348,147,650) (7,280,686,489)
Loans and advances to customers (35,928,867,124) (43,854,866,880)
Other assets (188,674,412) (771,957,502)
Deposits from other banks 975,842,788 2,217,701,465
Deposits from customers 27,211,136,730 38,964,451,180
Other liabilities 2,264,998,681 2,247,638,030
Cash generated from (used in) operating assets and liabilities (ii) (6,290,454,818) (6,039,464,355)
Net cash flows from operating activities (A=i+ii) 3,507,440,847 1,333,459,609
B. Cash flows from investing activities:
Proceeds from sale of securities 54,654,139,635 85,715,949,901

Payments for purchase of securities (54,337,993,353) (83,124,735,925)
Purchase of fixed assets (374,799,850) (395,373,327)
Sale of fixed assets 3,776,352 7,842,971
Cash generated from (used in) investing activities (B) (54,877,216) 2,203,683,620
C. Cash flows from financing activities:
Receipts from issue of loan capital & debt security 5,000,000,000 -

Payments for redemption of loan capital & debt security (600,000,000) -
Dividends paid - (1,833,900,352)
Payment against lease obligation (2,477,131) (8,204,713)
Receipts from issue of ordinary shares - -
Cash generated from (used in) financing activities (C) 4,397,522,869 (1,842,105,065)
D. Net increase (decrease) in cash and cash equivalents (A+B+C) 7,850,086,500 1,695,038,164
E. Effects of exchange rate changes on cash and cash equivalents 7,264,394 17,226,310
F. Cash and cash equivalents at beginning of the period 28,789,533,363 27,077,268,889
G. Cash and cash equivalents at end of the period (D+E+F) 36,646,884,258 28,789,533,363
Cash and cash equivalents at end of the period represents

Cash in hand (including foreign currencies) 4.1 3,598,790,655 3,010,980,173
(including foreign currencies) 4.1 17,916,575,574 17,968,153,354
Balance with other banks and financial institutions 6 6,257,702,009 4,162,108,796
Treasury bills 9.1.1 1,971,577,720 -
Prize bond 9.1.1 5,138,300 4,341,040
36,646,884,258 28,789,533,363
17
Statement of Changes in Equity
For the year ended 31 December 2018
Revaluation Other Retained

Paid up capital Statutory reserve Total
Particulars reserve reserves earnings
Taka Taka Taka Taka Taka Taka
Balance as at 1 January 2018 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 2,640,353,198 25,761,744,012

Changes in accounting policy/ prior year adjustments - - - - - -
Restated balance 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 2,640,353,198 25,761,744,012
Surplus/deficit on account of revaluation of properties - - - - - -

Surplus/deficit on account of revaluation of investments - - (173,437,152) - - (173,437,152)
Currency translation differences - - - - 7,264,394 7,264,394
Net gains and losses not recognized in the income statement - - (173,437,152) - 7,264,394 (166,172,757)
Net profit for the period - - - - 2,455,767,824 2,455,767,824

Cash dividend - - - - - -
Issue of share capital/ Bonus share 1,375,425,259 - - - (1,375,425,259) -
Appropriation made during the period
Statutory reserve - 924,153,565 - - (924,153,565) -
Balance as at 31 December 2018 10,544,927,020 10,094,153,565 4,360,801,902 247,650,000 2,803,806,592 28,051,339,079
Balance as at 31 December 2017 9,169,501,760 9,170,000,000 4,534,239,054 247,650,000 2,640,353,198 25,761,744,012
18
Notes to the Financial Statements
1 Reporting entity
1.1 Status of the Bank
Southeast Bank Limited (the “Bank”) is a scheduled commercial bank in the private sector established under the
Bank Companies Act, 1991 and incorporated in Bangladesh on March 12, 1995 as a public limited company to
carry out banking business in Bangladesh. The registered office of the Bank is located at Eunoos Trade Centre
52-53, Dilkusha Commercial Area (Level 2,3 &16), Dhaka-1000. The consolidated financial statements of the
Bank as at and for the year ended 31 December 2018 comprise the Bank and its subsidiaries (together referred
to as the “Group” and individually as “Group entities”).
1.2 Principal activities of the Bank
The Bank has 135 (2017:132) branches, with no overseas branch as on 31 December 2018. Out of 135
branches 5 (2017:5) branchesrun on Islamic banking, the rest 130 (2017:127) branches run on commercial
conventional basis, of which 15 (2017:15) SME/agricultural branches are located across the country. The Bank
offers services for all commercial banking needs of the customers, which includes deposit banking, loans and
advances, export import financing, inland and international remittance facility etc. The Bank is listed with Dhaka
Stock Exchange Limited and Chittagong Stock Exchange Limited as a publicly traded company.
The Bank operates Islamic banking in 5 branches designated for the purpose in complying with the rules of
Islamic Shariah the modus operandi.
The Bank has four subsidiaries, one for its merchant banking operation (for details see note 1.5) and another
three for its remittance business of which one in the United Kingdom (for details see note 1.6), one in Australia
(for details see note 1.7) and other one in South Africa (for details see note 1.8).
1.3 Islamic Banking
The Bank obtained the Islamic Banking branches permission vide letter no. BRPD(P)745(22)/2003-2525 dated
28 June 2003, BRPD(P)745(22)/2004-1801 dated 9 May 2004 and BRPD(P)745(22)/2004-3957 dated 13
October 2004. The Islamic banking branches are governed under the rules and regulations of Bangladesh Bank.
Separate financial statements of Islamic Banking Branches are shown in Annexure-G, G.1 and G.2 .
The financial statements of the Islamic banking branches have also been prepared as per the Bank Companies
Act, 1991 (amended upto 2018), IFRSs and other prevailing laws and regulations applicable in Bangladesh.
A separate balance sheet and profit and loss account are shown in Annexure-G and G.1 and the figures
appearing in the annexure have been converted into relevant heads of financial statements under conventional
banking for consolidation and incorporation in these financial statements.
1.4 Off-Shore Banking
In order to cater the varied financial needs of 100% foreign owned/joint venture industrial units and foreign
entities located in Export Processing Zones of the country, the Bank obtained Off-Shore Banking License on 24
June 2008 vide letter no. BRPD(P-3)744(98)/2008-2213 from Bangladesh Bank. Presently the Bank has 2
(2017: 2) off-shore banking units - one at Dhaka Export Processing Zone and the other at Chittagong Export
Processing Zone. Off-shore banking unit is governed under the rules and regulations of Bangladesh Bank.
Separate financial statements of Off- Shore Banking Units are shown in Annexure-H, H.1 and H.2.
19
1.5 Southeast Bank Capital Services Limited
Southeast Bank Capital Services Limited is a subsidiary of Southeast Bank Limited which was incorporated on
23 September 2010 and commenced its operation from 1 December 2010. The Bank transferred its Merchant
Banking operation to the newly formed subsidiary company in pursuance of the direction of Bangladesh Bank
vide DOS Circular No. 4 dated 15 June 2010. The principal activities of this subsidiary company is to provide
quality services to the prospective institutional and individual investors in the capital market. It is decisively
providing the following services:
i) Portfolio Management Services

ii) Underwriting of Share
iii) Issue Management Services etc.
Copy of the audited financial statements is attached in Appendix - A.
1.6 Southeast Financial Services (UK) Ltd
Southeast Financial Services (UK) Ltd (the "Company") was incorporated as a private limited company with
Companies House of England and Wales under registration no. 7539137 on 22 February 2011. The company is
a wholly owned subsidiary of Southeast Bank Limited. Earlier on 28 October 2010, Southeast Bank Limited got
the approval of Bangladesh Bank to establish a wholly owned subsidiary in the United Kingdom. Southeast
Financial Services (UK) Limited obtained Certificate of Registration for Money Laundering Regulation (MLR) on
12 April 2011 from Her Majesty Customs and Excise. The company was granted registration from Financial
Services Authority (FSA) on 21 July 2011 as Small Payment Institution (SPI) to carry out Money Service
Business (MSB) under Payment Services Regulations 2009. The Company commenced its operation of
business on 26 September 2011. The registered office is located at 22 New Road, London E1 2AX, United
Kingdom.
The principal activities of the Company are to carry on the remittance business as well as to undertake and
participate in transactions, activities and operations generally carried on or undertaken by Exchange House.
The subsidiary is registered in the United Kingdom (UK). Audit of financial statements of this subsidiary is not
required as per rules 7 regulations of UK. The financial statements including accountant's report of this
subsidiary are attached in Appendix - B.
1.7 Southeast Financial Services (Australia) Pty Ltd
Southeast Financial Services (Australia) Pty Limited (the "Company") was incorporated as a private limited
company with Australian Business Register (ABR) under registration no. 40160673165 on 08 October 2012. The
Company is a wholly owned subsidiary of Southeast Bank Limited.
The subsidiary is registered in Australia. Audit of financial statements of this subsidiary is not required as per the
Corporations Act 2001 of Australia. The financial statements of this subsidiary are attached in Appendix - C.
Board of Directors of the group decided to discontinue the operation of the Southeast Financial Services
(Australia) Pty. Ltd. Therefore the group considered the entity as abandoned.
1.8 Southeast Exchange Company (South Africa) Pty Ltd
Southeast Exchange Company (South Africa) Pty Limited (the "Company") was incorporated as a private limited
company with The Companies and Intellectual Property Commission under registration no. 2011/008619/07 on
15 April 2011. The Company is a wholly owned subsidiary of Southeast Bank Limited.
The subsidiary is registered in South Africa. The Financial Statements of the Company is audited by G.L. Palmer
and Company. The audited financial statements of this Company are attached in Appendix - D.
20
2 Basis of preparation
2.1 Statement of compliance
The Financial Reporting Act, 2015 (FRA) has been enacted in 2015. Under the FRA, the Financial Reporting
Council (FRC) is to be formed and it is to issue financial reporting standards for public interest entities such as
banks. Section 38 of the Bank Companies Act, 1991 (amended upto 2013) has been replaced in 2015 by two
new sub-sections to require banks to prepare their financial statements under such financial reporting standards.
The FRC is yet to be formed and as such no financial reporting standards have been issued as per the
provisions of the FRA. Hence, considering Section 69 of FRA, the consolidated financial statements of the Bank
and its subsidiaries and the separate financial statements of the Bank as at and for the year ended 31 December
2018 have been prepared in accordance with International Financial Reporting Standards (IFRSs) and the
requirements of the Bank Companies Act, 1991 (amended upto 2018) , the rules and regulations issued by
Bangladesh Bank (BB), the Companies Act, 1994, the Securities and Exchange Rules, 1987, The Income Tax
Ordinance, 1984, The Value Added Tax, 1991. In case any requirement of the Bank Companies Act, 1991 and
provisions and circulars issued by BB differ with those of IFRSs, the requirements of the Bank Companies Act,
1991 and provisions and circulars issued by BB shall prevail. Material departures from the requirements of
IFRSs are as follows:
i) Investment in shares and Securities
IFRS: As per requirements of IFRS 9: classification and measurement of investment in Share and Securities will
depend on how these are managed (the entity’s business model) and their contractual cash flow characteristics.
Based on these factors it would generally fall either under “at fair value through profit and loss account” or under
“at fair value through other comprehensive income” where any change in the fair value (as measured in
accordance with IFRS 13) at the year-end is taken to profit and loss account or other comprehensive income
respectively.
Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003 investments in quoted shares and
unquoted shares are revalued at the year end at market price and as per book value of last audited balance
sheet respectively. Provision should be made for any loss arising from diminution in value of investment.
ii) Revaluation gain (loss) on Government securities
IFRS: Government securities refer primarily various debt instruments which include both bonds and bills. As per
requirements of IFRS 9 Financial Instruments, bonds can be categorised as “Amortised Cost (AC)” or “Fair Value
Through Profit or Loss (FVTPL)” or “Fair Value through Other Comprehensive Income (FVOCI)”. Bonds
designated as Amortised Cost are measured at amortised cost method and interest income is recognised
through profit and loss account. Any changes in fair value of bonds designated as FVTPL is recognised in profit
and loss account. Any changes in fair value of bonds designated as FVOCI is recognised in other reserve as a
part of equity.
As per requirements of IFRS 9, bills can be categorised either as “Fair Value Through Profit or Loss (FVTPL)” or
“Fair Value through Other Comprehensive Income (FVOCI)”. Any change in fair value of bills is recognised in
profit and loss or other reserve as a part of equity respectively.
Bangladesh Bank: HFT securities are revalued on the basis of mark to market and at year end any gains on
revaluation of securities which have not matured as at the balance sheet date are recognized in other reserves
as a part of equity and any losses on revaluation of securities which have not matured as at the balance sheet
date are charged in the profit and loss account. Interest on HFT securities including amortization of discount are
recognized in the profit and loss account. HTM securities which have not matured as at the balance sheet date
are amortized at the year end and gains on amortization are recognized in other reserve (loss are recognized in
profit and loss account) as a part of equity .
21
iii) Provision on loans and advances
IFRS: As per IFRS 9 Financial Instruments an entity shall recognize an impairment allowance on loans and
advances based on expected credit losses. At each reporting date, an entity shall measure the impairment
allowance for loans and advances at an amount equal to the lifetime expected credit losses if the credit risk on
these loans and advances has increased significantly since initial recognition, whether assessed on an individual
or collective basis, considering all reasonable information (including that which is forward-looking). For those
loans and advances for which the credit risk has not increased significantly since initial recognition, at each
reporting date, an entity shall measure the impairment allowance at an amount equal to 12 month expected
credit losses that may result from default events on such loans and advances that are possible within 12 months
after reporting date.
Bangladesh Bank: As per BRPD circular no. 16 dated 18 November 2014, BRPD circular no. 14 dated 23
September 2012, BRPD circular no. 19 dated 27 December 2012 and BRPD circular no. 05 dated 29 May 2013
a general provision at 0.25% to 5% under different categories of unclassified loans (good/standard loans) has to
be maintained regardless of objective evidence of impairment. Also provision for sub-standard loans, doubtful
loans and bad/losses has to be provided at 20%, 50% and 100% respectively for loans and advances depending
on the duration of overdue. Again as per BRPD Circular No.10 dated 18 September 2007 and BRPD Circular
No. 14 dated September 23, 2012, the Bank is required to maintain provision @ 1% against Off-Balance Sheet
Exposures. Such provision policies are not specifically in line with those prescribed by IAS 39. BRPD Circular no.
1 dated 20 February, 2018 General Provision for Housing Finance under Consumer Financing.
However, if there is any stay order issued by the Honorable High Court Division of the Supreme Court of
Bangladesh against any non-performing loans for reporting such loans as unclassified category, the Bank
maintains at least general provision for such loans under unclassified loan category as per Bangladesh Bank
guidelines. Where Bangladesh Bank suggests any additional provision to be maintained for such loans, the
Bank also complies with that.
iv) Recognition of interest in suspense
IFRS: Loans and advances to customers are generally classified at amortised cost as per IFRS 9 and interest
income is recognised in profit and loss account by using the effective interest rate method to the gross carrying
amount over the term of the loan. Once a loan subsequently become credit-impaired, the entity shall apply the
effective interest rate to the amortised cost of these loans and advances.
Bangladesh Bank: As per BRPD circular no. 14 dated 23 September 2012, once a loan is classified, interest
on such loans is not allowed to be recognized as income, rather the corresponding amount needs to be credited
to an interest in suspense account, which is presented as liability in the balance sheet.
v) Other comprehensive income
IFRS: As per IAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements
of OCI are to be included in a Single Comprehensive Income statement.
Bangladesh Bank: Bangladesh Bank has issued templates for financial statements which will strictly be
followed by all banks. The templates of financial statements issued by Bangladesh Bank do not include Other
Comprehensive Income nor are the elements of Other Comprehensive Income allowed to be included in a single
Other Comprehensive Income (OCI) statement. As such the Bank does not prepare the OCI statement.
However, elements of OCI, if any, are shown in the statements of changes in equity.
vi) Financial instruments - presentation and disclosure
In several cases Bangladesh Bank guidelines categories, recognize, measure and present financial instruments
differently from those prescribed in IFRS 9 Financial Instruments. Hence some disclosure and presentation
requirements of IFRS 7 Financial Instruments: Disclosures and IAS 32 Financial Instruments: Presentation,
cannot be made in this financial statements
22
vii) Repo and reverse repo transactions
IFRS: As per IFRS 9 when an entity sells a financial asset and simultaneously enters into an agreement to
repurchase the asset (or a similar asset) at a fixed price on a future date (repo or stock lending), the
arrangement is accounted for as a deposit, and the underlying asset continues to be recognized in the entity’s
financial statements. This transaction will be treated as loan and the difference between selling price and
repurchase price will be treated as interest expense.The same rule applies to the opposite side of the transaction
(reverse repo).
Bangladesh Bank: As per BRPD guidelines, when a bank sells a financial asset and simultaneously enters into
an agreement to repurchase the asset (or a similar asset) at a fixed price on a future date (repo or stock
lending), the arrangement is accounted for as a normal sales transactions and the financial assets are
derecognized in the seller’s book and recognized in the buyer’s book.
viii) Financial guarantees
IFRS: As per IFRS 9 Financial Instruments, financial guarantees are contracts that require an entity to make
specified payments to reimburse the holder for a loss it incurs because a specified debtor fails to make payment
when due in accordance with the term of a debt instrument. Financial guarantee liabilities are recognized initially
at their fair value, and the initial fair value is amortized over the life of the financial guarantee. The financial
guarantee liability is subsequently carried at the higher of this amortized amount and the loss allowance
determined as expected credit loss under IFRS 9. Financial guarantees are prescribed to be included within
other liabilities.
Bangladesh Bank: As per BRPD 14, financial guarantees such as L/C, L/G will be treated as Off-Balance Sheet
items. No liability is recognized for the guarantee except the cash margin.
ix) Cash and cash equivalents
IFRS: Cash and cash equivalent items should be reported as cash item as per IAS 7.
Bangladesh Bank: Some cash and cash equivalent items such as ‘money at call and on short notice’, Treasury
bills, Prize bonds are not shown as cash and cash equivalent. Money at call and on short notice presented on
the face of the balance sheet, Treasury bills and Prize bonds are shown in Investments.
x) Non-banking assets
IFRS: No indication of non-banking asset is found in any IFRS.
Bangladesh Bank: As per BRPD 14, there must exist a face item named non-banking assets.
xi) Cash flow statement
IFRS: As per IAS 7 Statement of Cash Flows, Cash Flow Statement can be prepared using either in direct
method or in indirect method. The presentation is selected to present these cash flows in a manner that is most
appropriate for the business or industry. The method selected is applied consistently.
Bangladesh Bank: As per BRPD 14, cash flow is the mixture of direct and indirect method.
xii) Balance with Bangladesh Bank: (Cash reserve ratio)
IFRS: Balance with Bangladesh Bank should be treated as other asset as it is not available for use in day to day
operations as per IAS 7.
Bangladesh Bank: Balance with Bangladesh Bank is treated as cash and cash equivalents.
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xiii) Presentation of intangible asset
IFRS: Intangible asset must be identified and recognized, and the disclosure must be given as per IAS 38.
Bangladesh Bank: There is no requirement for regulation of intangible assets in BRPD 14.
xiv) Off-balance sheet items
IFRS: There is no concept of off-balance sheet items in any IFRS; hence there is no requirement of disclosure of
off-balance sheet items on the face of the balance sheet.
Bangladesh Bank: As per BRPD 14, off balance sheet items (e.g. Letter of credit, Letter of guarantee etc.) must
be disclosed separately in face of balance sheet.
xv) Disclosure of appropriation of profit
IFRS: There is no requirement to show appropriation of profit in the face of statement of comprehensive income.
Bangladesh Bank: As per BRPD 14, an appropriation of profit should be disclosed in the face of profit and loss
account.
xvi) Loans and advance net of provision
IFRS: As per IFRS 9, loans and advances/Investments should be presented net of provision.
Bangladesh Bank: As per BRPD 14, provision on loans and advances are presented separately as liability and
cannot be netted off against loans and advances.
xvii) Recovery of written off loans
IFRS: As per IAS 1, an entity shall not offset assets and liabilities or income and expenses, unless required or
permitted by any IFRS. Again recovery of written off loans should be charged to profit & loss account as per
IFRS 15.
Bangladesh Bank: As per BRPD 14, recoveries of amount previously written off should be adjusted with the
specific provision for loans and advances.
(Also refer to note 3.21 Compliance of IFRSs)
2.2 The Bank’s compliance with related pronouncements by Bangladesh Bank
i) Internal control
The objective of internal control is to ensure that management has reasonable assurance that (i) operations are
effective, efficient and aligned with strategy, (ii) financial reporting and management information is reliable,
complete and timely accessible, (iii) the entity is in compliance with applicable laws and regulations as well as its
internal policies and ethical values including sustainability and (iv) assets of the company are safeguarded and
frauds & errors are prevented or detected.
Southeast Bank Limited has established an effective internal control system whose primary aim is to ensure the
overall control of risks and provide reasonable assurance that the objectives set by the Bank will be met. It has
designed to develop a high level compliance culture among the personnel of the Bank, establish efficient and
qualified operating model in the Bank, ensure reliability of internal and external information including accounting
and financial information, secure the Bank’s operations and assets, and comply with laws, regulatory
requirements and internal policies.
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The Board of Directors of Southeast Bank Limited, through its Audit Committee, periodically reviews the
effectiveness of Bank’s internal control system covering all the material controls, including financial, operational
and compliance controls, risk management systems, the adequacy of resources, qualifications and experience of
staff of the accounting and financial reporting functions. Board Audit Committee reviews the actions taken on
internal control issues identified by the internal and external auditors and regulatory authorities. It has active
oversight on the internal audit’s independence, scope of work and resources and it also reviews the functions of
Internal Control & Compliance Division of Head Office, particularly the scope of the annual audit plan and
frequency of the internal audit activities.
ii) Risk management
Banking business faces uncertainties in its operating environment, which, if not managed and mitigated, would
not only disrupt the achievement of its strategic and operational objectives, but may also cause extensive
financial and reputational loss. Effective risk management enables Banks to take better and informed decisions
that substantially improve the probability of achieving their strategic and operational objectives. In this
connection, the Bank has come forward to establish a general framework to manage the risk factors considering
Bangladesh Bank’s guidelines.
As one of the leading Banks in Bangladesh, Southeast Bank Limited (SEBL) has established approved policies
in compliance with central bank’s guidelines covering major risk areas such as: (a) Credit (b) Foreign Exchange
(c) Asset Liability Management (d) Money Laundering Prevention (e) Internal Control & Compliance (f)
Information and Communication Technology.
For strengthening and updating risk management system, the Bank has developed a manual for core risks
assessment in light of the Bangladesh Bank’s Risk Management Guidelines. The purpose of this assessment is
to inform management about the loopholes of full fledged implementation of core risks management, risk
management culture, restructure minimum standard and assist in the ongoing improvement.
Risk Management Reports (RMR) are being prepared on monthly, quarterly and semiannually basis and is
reviewed in the monthly risk management meeting to have management opinion on the issues identified in RMR.
iii) Internal audit

Internal audit is the continuous and systematic process of examining and reporting on the activities of an
organization undertaken by the specially assigned staff(s). Internal auditor works as the Eyes & Ears of the
management. It may therefore be used to bridge the gap between management & shop floor. It can assure the
management that the internal controls are adequate and in operations, the policies and systems laid down are
being adhered to and accounting records provided by all levels are correct.
Internal audit mechanism is used as an important element to ensure good governance of SEBL. Internal audit
activity of SEBL is effective and it provides senior management with a number of important services. These
include detecting and preventing errors and fraud, testing internal control and monitoring compliance with own
policies & procedures, applicable rules & regulations, instructions/ guidelines of regulatory authority etc.
During the year 2018, Audit & Inspection Unit of ICCD conducted inspection on most of the branches and some
of the important divisions of head office of the Bank as per plan and submitted reports presenting the findings of
the audits/ inspections to the appropriate authorities. The bank conducted the risk grading of branches as per
Bangladesh Bank guideline. Necessary control measures and corrective actions have been taken on the
suggestions or observations made in these reports. The key points of the Reports have also been discussed in
the meetings of the Audit Committee of the Board and necessary steps have been taken according to the
decision of the said Committee for correct functioning of Internal Controls & Compliance of the Bank.
iv) Fraud and forgeries
Fraud can happen anywhere. Though, only relatively few major frauds are picked up by the media, huge sums
are lost by all kinds of businesses against huge number of smaller frauds. The risks of fraud is increasing day by
day as a result of growing globalization, more competitive markets, rapid developments in technology, periods of
economic difficulty, etc. Banks by virtue of the nature of activities undertaken and its operating environment are
vulnerable to frauds, which take place when aggressive business strategy and process for quick growth is
adopted without adequate/appropriate internal controls or non-adhering of operating standards/ controls. In the
recent past, incidence of frauds in the Banking industry has increased which calls for concerted steps in
investigating the frauds and identifying the fraudsters for eventual criminal prosecution and internal punitive
action.
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It will never be possible to eliminate all frauds and no system is completely fraud proof, since many fraudsters
are able to bypass control systems put in place. SEBL pays attention on anti-fraud internal controls for
prevention of fraud and forgery. SEBL assesses/evaluates the effectiveness of its anti-fraud internal control
measures on quarterly basis as per the items/areas mentioned in the prescribed checklist of Bangladesh Bank.
2.3 Basis of measurement
The financial statements of the Bank have been prepared on the historical cost basis except for the following:
- Government Treasury Bills and Bonds designated as 'Held for Trading (HFT)' at present value using
marking to market concept with gain crediting revaluation reserve
- Government Treasury Bills and Bonds designated as 'Held to Maturity (HTM)' and remeasured
Government Treasury Bond at present value using amortisation concept
- Investment in shares of listed companies
- Land and buildings are measured at fair value
2.4 Functional and presentation currency
These financial statements are presented in Bangladesh Taka (Taka/Tk) which is the Bank's functional currency.
Except as otherwise indicated, financial information presented in Taka has been rounded to the nearest integer.
2.5 Use of estimates and judgments
The preparation of these financial statements in conformity with Bangladesh Bank circulars and IFRSs requires
management to make judgments, estimates and assumptions that affect the application of accounting policies
and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these
estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected.
Information about significant areas of estimation, uncertainty and critical judgments in applying accounting
policies that have the most significant effect in the year ended 31 December 2019 is included in the following
notes:
a) Note 3.3.3 : Rate of provision for loans, advances/investments
b) Note 3.3.4 : Useful lives of depreciable assets
c) Note 21.3.2 : Provision for deferred tax
d) Note 24 : Assets revaluation reserve
2.6 Reporting period
These financial statements cover one calendar year from 1 January 2018 to 31 December 2018.
2.7 Cash flow statement
Cash flow statement has been prepared in accordance with the BRPD Circular No. 14 dated 25 June 2003
issued by the Banking Regulation & Policy Department of Bangladesh Bank.
2.8 Statement of changes in equity
The Statement of changes in equity reflects information about the increase or decrease in net assets or wealth.
2.9 Liquidity statements
The consolidated and separate liquidity statement of assets and liabilities as on the reporting date has been
prepared on residual maturity term which has been given in the statement.
Consolidated liquidity statements of the Group and the separate liquidity statements of the Bank have been
furnished in Annexure-B and Annexure-B.1 respectively.
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3 Significant accounting policies
The accounting policy set out below have applied consistently to all periods presented in these consolidated
financial statements of the Group and those of the Bank, and have been applied consistently by the group
entities.
3.1 Basis of consolidation
The consolidated financial statements include the financial statements of Southeast Bank Limited and its four
subsidiaries Southeast Bank Capital Services Limited, Southeast Financial Services (UK) Ltd, Southeast
Financial Services (Australia) Pty Ltd and Southeast Exchange Company (South Africa) Pty Ltd made up to the
end of the financial year.
3.1.1 Business combinations
Business combinations are accounted for using the acquisition method as at the acquisition date; i.e. when
control is transferred to the Group. Control is the power to govern the financial and operating policies of an entity
so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential
voting rights that are currently exercisable.
The Group measures goodwill at the acquisition date as:
● the fair value of the consideration transferred; plus
● the recognised amount of any non-controlling interests in the acquiree; plus
● if the business combination is achieved in stages, the fair value of the pre-existing equity interest in the
acquiree; less
● the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities
assumed.
When the excess is negative, a bargain purchase gain is recognised immediately in profit or loss.
The consideration transferred does not include amounts related to the settlement of pre-existing relationships.
Such amounts are generally recognised in profit or loss.
Transactions costs, other than those associated with the issue of debt or equity securities, that the Group incurs
in connection with a business combination are expensed as incurred.
3.1.2 Non-controlling interest
For each business combination, the Group elects to measure any non-controlling interests in the acquiree either:
● at fair value; or
● at their proportionate share of the acquiree’s identifiable net assets, which are generally at fair value.
Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as
transactions with owners in their capacity as owners. Adjustments to non-controlling interests are based on a
proportionate amount of the net assets of the subsidiary.
Subsidiaries are the entities controlled by the Group. The financial statements of subsidiaries are included in the
consolidated financial statements from the date that control commences until the date that control ceases.
3.1.3 Transactions eliminated on consolidation
Intra-group balances, and income and expenses (except for foreign currency transaction gains or losses) arising
from intra-group transactions, are eliminated in preparing the consolidated financial statements. Unrealised
losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of
impairment.
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3.2 Foreign currency
3.2.1 Foreign currency transactions
Transactions in foreign currencies are translated into the respective functional currency of the operation at the
spot exchange rate at the date of the transaction.
Monetary assets and liabilities denominated in foreign currencies at the reporting date are translated into the
functional currency at the spot exchange rate at that date. Non-monetary assets and liabilities denominated in
foreign currencies that are measured at fair value are retranslated into the functional currency at the spot
exchange rate at the date that the fair value was determined. Non-monetary assets and liabilities that are
measured in terms of historical cost in a foreign currency are translated using the exchange rate at the date of
transaction.
Foreign currency differences arising on translation are recognised in profit or loss, except for differences arising
on translation of equity investments in respect of which an election has been made to present subsequent
changes in fair value in equity.
3.2.2 Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated into Taka at spot exchange rates at the reporting date. The income and expenses of
foreign operations, are translated into Taka at average exchange rates.
Foreign currency differences are presented in the foreign currency translation reserve in equity. However, if the
operation is a non-wholly-owned subsidiary, then the relevant proportionate share of the translation difference is
allocated to the non-controlling interest.
When the settlement of a monetary item receivable from or payable to a foreign operation is neither planned nor
likely in the foreseeable future, foreign exchange gains and losses arising from such a monetary item are
considered to form part of the net investment in the foreign operation and presented in the translation reserve in
equity.
3.3 Assets and basis of their valuation
3.3.1 Cash and cash equivalents
Cash and cash equivalents include notes and coins on hand, unrestricted balances held with Bangladesh Bank
and its agent bank, balance with other banks and financial institutions, money at call and on short notice,
investments in treasury bills and prize bond.
3.3.2 Investments
All investment securities are initially recognised at cost, including acquisition charges associated with the
investment. Premiums are amortised and discounts are accredited.
Held to Maturity
Investments which have, 'fixed or determinable payments' and are intended to be held to maturity are classified
as 'Held to Maturity'.
Held for Trading

Investment classified in this category are acquired principally for the purpose of selling or repurchasing in short
trading or if designated as such by the management.
Re-measured bond
As per DOS circular letter no. 2 dated 19 January 2012, Treasury bond held in HFT category by the Primary
Dealer (PD) may be re-measured at amortized cost instead of fair value.
Revaluation
As per the DOS Circular letter no. 5 dated 26 May 2008, HFT securities are revaluated each week using
Marking to Market concept and HTM securities are amortised once a year according to Bangladesh Bank
guidelines.
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Value of investments has been shown as under:
Government Treasury Bills and Bonds (HFT) At present value (using marking to market concept)
Government Treasury Bills and Bonds (HTM) At present value (using amortisation concept)
Re-measured Government Treasury Bonds At present value (using amortisation concept)
Bangladesh Government Islamic Bond At cost
Prize Bonds At cost
Unquoted shares At cost or net book value of the last audited balance sheet
whichever is lower
Quoted shares At cost or market value whichever is lower at balance sheet date
Details are shown in notes 8 and 9.
3.3.3 Loans and advances/ investments and provisions for loans and advances/ investments
a) Loans and advances of conventional Banking/Investments of Islamic Banking branches are stated in the
Balance Sheet on gross value.
b) Provision for loans and advances is made on the basis of periodical review by the management and of
instructions contained in Bangladesh Bank BRPD Circular Nos. 14 and 15 of 23 September 2012,
BRPD Circular No. 19 of 27 December 2012, BRPD Circular No. 05 of 29 May 2013, BRPD Circular No.
12 of 20 August 2017 and BRPD circular No. 15 of 27 September 2017. BRPD Circular no. 1 dated 20
February, 2018 General Provision for Housing Finance under Consumer Financing. The rates of
provision for different classifications are given below:
Particulars Rate
General provision on:
All unclassified loans and advances/investments except followings 1%
Small and medium enterprise financing 0.25%
Housing finance (HF) and loans for professionals (LP) to set up business
under consumer financing scheme 1%-2%
Consumer financing 2%-5%
Loan to Brokerage Houses (BHs)/Merchant Banks (MBs)/
Sponsor Directors (SDs) against shares 2%
Special mention account (SMA) 0.25%-5%
Specific provision on:

Substandard loans and advances/investments 20%
Doubtful loans and advances/investments 50%
Bad/loss loans and advances/investments 100%
Provisions for Short term Agricultural and Micro-Credits

All credits except 'Bad/Loss' 1%-5%
(i.e. Doubtful, Substandard, irregular and regular credit)
Bad/Loss 100%
c) Loans and advances are written off to the extent that

i) there is no realistic prospect of recovery, and
ii) against which legal cases are filed and classified as bad/loss as per guidelines of Bangladesh Bank.
These write off however will not undermine/affect the claim amount against the borrower. Detailed
memorandum records for all such write off accounts are maintained and followed up.
d) Amounts receivable on credit cards are included in advances to customers at the amounts expected to
be recovered.
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3.3.4 Fixed assets and depreciation
Recognition and measurement
Items of fixed assets excluding land are measured at cost/revaluation less accumulated depreciation and
accumulated impairment losses, if any. Land is measured at revaluation.
Cost includes expenditure that are directly attributable to the acquisition of asset and bringing to the location and
condition necessary for it to be capable of operating in the intended manner.
When parts of an item of fixed asset have different useful lives, they are accounted for as separate items (major
components) of fixed assets.
The gain or loss on disposal of an item of fixed asset is determined by comparing the proceeds from disposal
with the carrying amount of the item of fixed asset, and is recognised in other income/other expenses in profit or
loss.
Subsequent costs
The cost of replacing a component of an item of fixed assets is recognised in the carrying amount of the item if it
is probable that the future economic benefits embodied within the part will flow to the Group and its cost can be
measured reliably. The carrying amount of the replaced part is derecognised. The costs of the day-to-day
servicing of fixed assets are recognised in profit or loss as incurred.
Depreciation
Depreciation is recognised in profit or loss on reducing balance method, except motor vehicles which are
depreciated on straight line basis, over the estimated useful lives of each part of an item of fixed assets since
this most closely reflects the expected pattern of consumption of the future economic benefits embodied in the
asset. In case of acquisition of fixed assets, depreciation is charged from the month of acquisition, whereas
depreciation on disposed off fixed assets is charged up to the month prior to the disposal. Asset category-wise
depreciation rates for the current and comparative years are as follows:
Category of assets Rate of depreciation

Land Nil
Buildings 4%
Furniture and fixtures 10%
Office appliances 20%
Professional and reference books 30%
Electrical appliances 20%
Computer 20%
ATM Booth 20%
Motor vehicles 20%
Depreciation methods, useful lives and residual values are reassessed at each reporting date and adjusted, if
appropriate.
3.3.5 Leased assets – lessee
Leases in terms of which the Group assumes substantially all the risks and rewards of ownership are classified
as finance leases. Upon initial recognition the leased asset is measured at an amount equal to the lower of its
fair value and the present value of the minimum lease payments. Subsequent to initial recognition, the asset is
accounted for in accordance with the accounting policy applicable to that asset.
Other leases are operating leases and are not recognised in the Group’s Balance Sheet.
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3.4 Liabilities and basis of their valuation
3.4.1 Borrowings from other banks, financial institutions and agents
Borrowings from other banks, financial institutions and agents includes refinance from Bangladesh Bank against
agro-based credit, SME Loan etc., interest-bearing borrowings against securities from Bangladesh Bank and call
borrowing from other banks. These items are brought to financial statements at the gross value of the
outstanding balance. Details are shown in notes 16 and 17.
3.4.2 Deposits and other accounts
Deposits and other accounts include non interest-bearing current deposit redeemable at call, interest bearing on
demand and short-term deposits, savings deposit and fixed deposit. These items are brought to financial
statements at the gross value of the outstanding balance. Details are shown in notes 18 and 19.
3.4.3 Other liabilities
Other liabilities comprise items such as provision for loans and advances/investments, provision for taxation,
interest payable, interest suspense, accrued expenses, obligation under finance lease etc. Other liabilities are
recognised in the balance sheet according to the guidelines of Bangladesh Bank, Income Tax Ordinance, 1984
and internal policy of the Bank. Details are shown in notes 20 and 21.
3.5 Capital/Shareholders' equity
3.5.1 Authorised capital
Authorised capital is the maximum amount of share capital that the Bank is authorised by its Memorandum and
Articles of Association.
Details are shown in note 22.1
3.5.2 Paid up capital
Paid up capital represents total amount of shareholder capital that has been paid in full by the ordinary
shareholders. Holders of ordinary shares are entitled to receive dividends as declared from time to time and are
entitled to vote at shareholders’ meetings. In the event of a winding-up of the Bank, ordinary shareholders rank
after all other shareholders and creditors and are fully entitled to any residual proceeds of liquidation. Details are
shown in note 22.2.
3.5.3 Statutory reserve
Statutory reserve has been maintained @ 20% of profit before tax in accordance with provisions of section 24 of
the Bank Companies Act 1991, until such reserve equals to its paid up capital together with the share premium.
3.5.4 Revaluation reserve
Revaluation reserve arises from the revaluation of land and buildings as well as the revaluation of Treasury bills
and bonds (HFT & HTM) in accordance with the DOS circular no. 5 dated 26 May 2008 and DOS(SR)
1153/120/2010 dated 8 December 2010. The tax effects on revaluation gain are measured and recognised in the
financial statements as per IAS 12: Income Taxes .
Details are shown in note 24.
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3.6 Contingent liabilities
A contingent liability is -
A possible obligation that arises from past events and the existence of which will be confirmed only by the
occurrence or non-occurrence of one or more uncertain future events not wholly within the control of the Bank; or
A present obligation that arises from past events but is not recognised because:
- it is not probable that an outflow of resources embodying economic benefits will be required to settle the
obligation; or
- the amount of the obligation cannot be measured with sufficient reliability.
Contingent liabilities are not recognised but disclosed in the financial statements unless the possibility of an
outflow of resources embodying economic benefits is reliably estimated.
Contingent assets are not recognised in the financial statements as this may result in the recognition of income
which may never be realised.
3.7 Revenue recognition
3.7.1 Interest income (Conventional Banking)
Interest on loans and advances is calculated on daily product basis and accrued at the end of each month, but
charged to customers' accounts on quarterly basis. Interest accrued on loans and advances fall under Sub
Standards (SS) and Doubtful (DF) category are credited to interest suspense account instead of income
account. Interest is not charged on bad and loss loans as per guideline of Bangladesh Bank. Such interest is
kept in separate memorandum account. Interest on classified loans and advances is accounted for on a cash
receipt basis. Interest income from fixed deposit with other banks and call lending to other banks is recognized
on accrual basis.
3.7.2 Profit on investment (Islamic Banking)
Mark-up on investment is taken into income account proportionately from profit receivable account. Overdue
charge/compensation on classified investments is transferred to profit suspense account instead of income
account.
3.7.3 Investment income
Income on investments is recognised on accrual basis. Investment income includes discount on treasury bills
and interest on treasury bonds. Capital gain on investments in shares is also included in investment income.
Capital gain is recognised when it is realised.
3.7.4 Fees and commission income
The Bank earns fees and commissions from diverse range of services provided to its customers. Fees and
commission income is recognised on a realisation basis. Commission charged to customers on letters of credit
and letters of guarantee are credited to income at the time of effecting the transactions.
3.8 Interest paid on borrowing and other deposits (Conventional Banking)
Interest paid and other expenses are recognised on accrual basis.
3.9 Profit shared on deposits (Islamic Banking)
Profit shared to mudaraba deposits is recognised on accrual basis as per provisional rate.
3.10 Dividends
Dividend income is recognised when the right to receive income is established. Usually this is the ex-dividend
date for equity securities. Dividends are presented in investment income.
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3.11 Lease payments
Payments made under operating leases are recognised in profit or loss on a straight-line basis over the term of
the lease.
Lease payments made under finance leases are apportioned between the finance expense and the reduction of
the outstanding liability. The finance expense is allocated to each period during the lease term so as to produce
a constant periodic rate of interest on the remaining balance of the liability.
3.12 Employee benefits
3.12.1 Provident Fund
Provident fund benefits are given to the staff of the Bank in accordance with the registered provident fund rules.
The commissioner of Income Tax, Large Tax Payers Unit (LTU), Dhaka has approved the Provident Fund as a
recognized fund within the meaning of section 2(52) read with the provisions of part - B of the First Schedule of
Income Tax Ordinance 1984. The fund is operated by a Board of Trustees consisting of 6 (six) members of the
Bank. All confirmed employees of the Bank are contributing 10% of their basic salary as subscription of the fund.
The Bank also contributes equal amount to the fund. Contributions made by the Bank are charged as expense
and the bank bears no further liability. Interest earned from the investments is credited to the members' account
on half yearly basis. Members are eligible to get both the contribution after 5 (five) years of continuous service
from the date of their membership.
3.12.2 Gratuity Fund
Gratuity fund benefits are given to the staff of the Bank in accordance with the approved gratuity fund rules.
National Board of Revenue has approved the gratuity fund as a recognized gratuity fund with effect from
December 2001. The fund is operated by a Board of Trustees consisting of 7 (seven) members of the Bank.
Employees are entitled to gratuity benefit after completion of minimum 7 (seven) years of service in the Bank.
The amount payable at the date of balance sheet is recognised and accounted for as at that date based on
actual rate. The gratuity is calculated on the basis of last basic pay and is payable at the rate of one month's
basic pay for every completed year of service. The amount so calculated are transferred to the fund and charged
to expenses of the Bank.
3.12.3 Short-term employee benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided. A liability is recognised for the amount expected to be paid under short-term cash
bonus or profit-sharing plans if the Group has a present legal or constructive obligation to pay this amount as a
result of past service provided by the employee and the obligation can be estimated reliably.
3.12.4 Workers' Profit Participation Fund (WPPF)
As per Bangladesh Labour Act 2006 and SRO no. 336/Law/2010, all companies fall within the scope of WPPF
are required to provide 5% of its profit before charging such expense to their eligible employees within the
stipulated time. The Bank obtained opinion from its legal advisor regarding this issue. The legal advisor opined
that, "Southeast Bank Limited being governed by Banking Companies Act, 1991 is obliged to follow the
provisions of Banking Companies Act, 1991, and Banking Companies Act, 1991 being a special law, provisions
of this Act shall prevail over Bangladesh Labour Laws, 2006 (amended in 2013) which is a general law. Thus,
we take the view that the Bank is not bound to form a WPPF under Bangladesh Labour Laws, 2006 (amended in
2013)". Consistent with the industry practice and in accordance with the legal opinion and the Bank Company
Act, 1991 (amended in 2013), no provision has been made for WPPF.
3.13 Provisions and accrued expenses
In compliance with IAS-37, provisions and accrued expenses are recognized in the consolidated and separate
financial statements when the Group/Bank has a legal or constructive obligation as a result of past event, it is
probable that an outflow of economic benefit will be required to settle the obligation and a reliable estimate can
be made of the amount of the obligation.
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3.14 Provision for Off-Balance Sheet Exposures
In compliance with Bangladesh Bank guidelines off-balance sheet items are disclosed under contingent
liabilities. As per BRPD Circular No.10 dated 18 September 2007 and BRPD Circular No. 14 dated 23
September 2012 and BRPD Circular no. 13 dated 18 October 2018, the Bank is required to maintain provision @
1% against off-balance sheet exposures. Details are shown in note 21.5.1 (C).
3.15 Provision for Nostro Accounts
According to guideline of Foreign Exchange Policy Department of Bangladesh Bank, Circular No. FEOD
(FEMO)/01/2005-677 dated 13 September 2005, Bank is not required to make provision regarding the un-
reconciled debit balance as at Balance Sheet date since there was no debit entries more than three month.
3.16 Tax expense
Tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss
except to the extent that it relates to items recognised directly in equity.
3.16.1 Current tax
Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates
enacted or substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous
years.
Details are shown in note 21.3.1.
3.16.2 Deferred tax
Deferred tax is recognised in respect of temporary differences between the carrying amounts of assets and
liabilities for financial reporting purposes and the amounts used for taxation purposes. Deferred tax is not
recognised for the following temporary differences:
● temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
● temporary differences related to investments in subsidiaries to the extent that it is probable that they will
not reverse in the foreseeable future; and
● temporary differences arising on the initial recognition of goodwill.
Deferred tax is measured at the tax rates that are expected to be applied to the temporary differences when they
reverse, based on the laws that have been enacted or substantively enacted by the reporting date.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
against current tax assets, and they relate to income taxes levied by the same tax authority on the same taxable
entity, or on different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their
tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised for unused tax losses, tax credits and deductible temporary differences to the
extent that it is probable that future taxable profits will be available against which they can be utilised. Deferred
tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
Deferred tax relating to unrealised surplus on revaluation of held to maturity (HTM) securities and held for trading
(HFT) securities and land and buildings are recognised directly in revaluation reserve as a part of equity and is
subsequently recognised in profit and loss account on maturity of the security and disposal of land and buildings.
Details are shown in note 21.3.2.
34
3.16.3 Tax exposures
In determining the amount of current and deferred tax, the Bank takes into account the impact of uncertain tax
positions and whether additional taxes and interest may be due. This assessment relies on estimates and
assumptions and may involve a series of judgments about future events. New information may become available
that causes the Bank to change its judgment regarding the adequacy of existing tax liabilities; such changes to
tax liabilities will impact tax expense in the period that such a determination is made.
3.17 Impairment of non-financial assets
The carrying amounts of the Group’s and the Bank's non-financial assets, other than deferred tax assets, are
reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication
exists, then the asset’s recoverable amount is estimated. An impairment loss is recognised if the carrying amount
of an asset or its Cash Generating Unit (CGU) exceeds its estimated recoverable amount.
The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less costs to sell.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax
discount rate that reflects current market assessments of the time value of money and the risks specific to the
asset or CGU.
For the purpose of impairment testing, assets that cannot be tested individually are grouped together into the
smallest group of assets that generates cash inflows from continuing use that are largely independent of the
cash inflows of other assets or CGU.
Impairment losses are recognised in profit or loss. Impairment losses recognised in respect of CGUs are
allocated first to reduce the carrying amount of any goodwill allocated to the CGU (group of CGUs) and then to
reduce the carrying amount of the other assets in the CGU (group of CGUs) on a pro rata basis.
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the
loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.
3.18 Earnings per share
The Group and the Bank present basic and diluted earnings per share (EPS) data for its ordinary shares. Basic
EPS is calculated by dividing the profit or loss attributable to ordinary shareholders of the Group/ Bank by the
weighted average number of ordinary shares outstanding during the period. Diluted EPS is determined by
adjusting the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary
shares outstanding for the effects of all dilutive potential ordinary shares, which comprise share options granted
to employees.
3.19 Reconciliation of inter-bank/inter-branch account
Books of accounts with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled regularly
and there are no material differences which may affect the financial statements significantly.
Un-reconciled entries in case of inter-branch transactions as at the reporting date are not material.
35
3.20 Risk management
Effective risk management is an essential element of our operations and strategy. The Bank monitors risk at all
levels throughout its operations and has established units to manage various types of risk. Our risk management
framework is designed to identify, manage and mitigate the risk of any failure to achieve business objectives.
The risk management of the Bank covers following six core risk areas:
i) Credit Risk
ii) Foreign Exchange Risk
iii) Asset Liability Management Risk
iv) Money Laundering Risk
v) Internal Control & Compliance Risk; and
vi) Information and Communication Technology Risk
The Bank’s risk management policy and process are composed with all the structures, policies, process and
strategies in line with the guidelines of central bank and other regularity authorities. The Bank endeavors to
maximize profits through the development of an integrated risk management system.
3.20.1 Credit risk
Credit risk is the possibility that a borrower or counter party will fail to repay the borrowed money as per the
agreed terms and conditions. Managing Credit risk of the Bank in an efficient manner has become one of the
most crucial tasks for the management. Given the fast changing, dynamic global economy, implementation of
Basel-III and the increasing pressure of globalization and liberalization it is essential that banks have robust
credit risk management policies and procedures that are sensitive and responsive to these changes.
A thorough assessment & due diligence are done before sanctioning any credit facility at Credit Risk
Management Division (CRM) of the Bank. The risk assessment includes borrower risk analysis, financial
analysis, industry analysis, historical performance of the customer, security of the proposed credit facilities and
various critical risk factors. The assessment process starts at Branch Credit department by the Officer and ends
at Credit Risk Management Division (CRM) in Head Office where it is approved / declined by the competent
authority. Credit approval authority has been partially delegated to the individual executives. Proposal beyond
their delegation are approved / declined by the Board / Executive Committee (EC) of the Board.
3.20.2 Foreign Exchange Risk
Foreign exchange risk is the exposure of an institution to the potential impact of movements in foreign exchange
rates. The risk is that adverse fluctuations in exchange rates may result in a loss in earnings. As per the
guidelines of Bangladesh Bank, Southeast Bank Limited has developed a detailed Foreign Exchange Risk
Management policy to minimize different types of risks associated with foreign exchange transactions. The Bank
has also developed different strategies to handle foreign exchange risk by setting different types of limits and risk
parameters to measure and monitor foreign exchange risk exposure of the Bank.
The Foreign Exchange Desk of Treasury Division is involved in foreign exchange dealing activities with different
counterparty banks. The Treasury Back Office is engaged in transfer of funds and passing of the transaction
entries in the books of accounts; the Mid Office is responsible for verification of the deals. All foreign exchange
assets and liabilities are revalued at market rate as per the directive of Bangladesh Bank. All nostro accounts are
reconciled on a monthly basis and outstanding entries beyond 30 days are reviewed by the management for its
settlement.
3.20.3 Asset Liability Management
Banks are exposed to the several risks such as Liquidity Risk, Interest Rate Risk, Foreign Exchange Risk, Credit
Risk and Operational Risk etc. Monitoring and controlling these risks are vital to the survival of a financial
institution. Asset-Liability Management is a tool to oversee whether different balance sheet risks are properly
identified, appropriate policies and procedures are well established to control and limit these risks.
Asset-Liability Committee (ALCO) reviews country’s overall economic position, the Bank’s liquidity position, key
performance ratios, interest rate risk, deposit and advance growth, cost of deposit & yield on advances, deposit
& lending pricing strategy and different forecasted balance sheet risks of the Bank.
36
3.20.4 Money Laundering Risk
Money laundering is the generic term used to describe the process by which criminals disguise the original
ownership and control the proceeds of criminal conduct by making such proceeds appear to have derived from a
legitimate source. If money laundering is done successfully, it allows the criminals to maintain control over their
proceeds and ultimately to provide a legitimate cover for their source of income. Drug traffickers, the terrorists,
the organized criminals, the insider dealer, the tax evaders as well as many others who intend to avoid the
attention from the authorities of their sudden wealth brought from illegal activities take the help of money
laundering. By engaging in this type of activity it is hoped to place the proceeds beyond the reach of any asset
forfeiture laws.
Southeast Bank Limited (SEBL) has implemented an enterprise-wide AML (Anti-Money Laundering) and CFT
(Combating the Financing of Terrorism) compliance program, which covers all the activities of the Bank and is
reasonably designed to comply with applicable laws and regulations. It is the policy of SEBL to take all
reasonable and appropriate steps to prevent persons engaged in money laundering, fraud, or other financial
crime, including the financing of terrorists or terrorist operations, from utilizing SEBL products and services.
SEBL makes every effort to remain in full compliance with all applicable AML and CFT laws, rules and standards
in the jurisdictions in which it does business.
In order to facilitate compliance with AML and CFT requirements, SEBL has appointed one of its Senior
Executives as the CAMLCO (Chief Anti-Money Laundering Compliance Officer) and a team of employees with
experience on AML and CFT requirements under law to oversee the Bank's AML and CFT program. SEBL has
developed and implemented written AML and CFT policies, procedures, internal controls and systems, which
include (but not limited to) a customer identification program and procedures; procedures to collect and refresh,
as appropriate, customer due diligence information; processes to assess risk; processes and systems to monitor
customer transactions and activity; processes and systems to identify and report suspicious activity; and,
processes to keep required records. SEBL educates its all employees on AML and CFT requirements and
activities and also subjects its AML and CFT program to regular independent testing. SEBL cooperates fully with
law enforcement and regulatory investigations and inquiries in identifying the criminals involve in Money
Laundering and Terrorist Activities/Financing.
3.20.5 Internal Control & Compliance Risk
Internal control is fundamental to the successful operation and day-to-day running of a business and it assists
the bank in achieving its business objectives. It encompasses all controls incorporated into the strategic,
governance and management processes, covering the bank’s entire range of activities and operations, and not
just those directly related to financial operations and reporting. Its scope is not confined to those aspects of a
business that could broadly be defined as compliance matters, but extends also to the performance aspects of a
business.
SEBL has established a System of Internal Control, which is designed to manage all the risks of failure to a
reasonable level, achieve aims and objectives/goals of the Bank and this System provides reasonable
assurance of effective & efficient operations covering all controls including financial & operational controls,
reliability of the financial information, compliance with applicable laws & regulations, adherence to management
policies, safeguarding of Bank’s Assets, prevention & detection of fraud & errors, and accuracy & completeness
of the accounting records.
The Board of Directors of SEBL regularly reviews the effectiveness of internal control process through its Audit
Committee and the Audit Committee plays an effective role amongst the Board of Directors, Management,
Shareholders, Depositors and develops an efficient, powerful and a safe banking system. The committee also
performs a very important role for publishing Bank’s financial statements, developing an appropriate internal
control system and maintains an effective communication with internal and external auditors. It significantly
contributes in controlling and monitoring various risks factors that arise from the business activities of the Bank.
Board Audit Committee reviews the actions taken on internal control issues identified in the reports prepared by
the internal & external auditors and regulatory authorities. It has active oversight on the internal audit’s
independence, scope of work and resources and it also reviews the functions of Internal Control & Compliance
Division of Head Office, particularly the scope of the annual audit plan and frequency of the internal audit
activities.
37
3.20.6 Information and communication technology
The Bank has Centralized Core Banking Software (CBS)and providing online banking services to its clients
through 136 Branches across the country. The Bank is also offering 24/7 banking services through its different
delivery channels, like Internet Banking, ATM and Mobile Financial Service (MFS). Besides, the Bank has
introduced Recycler ATM in the brand name of “SEBL Instant Banking Service.” Through this service, customers
are able to deposit cash on a real time basis other than cash withdrawal facility. SMS and E-Mail Alert services
are available for any debit/credit transaction through online and Internet Banking or using Bank’s Debit / Credit
Card as a deterrent against fraudulent transaction attempts. The Bank has established its Far DC (Data Center)
at Jessore as it falls under different seismic zone as part of its business continuity plan (BCP) as well as for
compliance of ICT Security Guideline of Bangladesh Bank. Data synchronization in near real time basis has
been established through fiber optic cables from main DC to near DC (Disaster Recovery Site at Uttara) and
again main DC to far DC at Jessore to ensure availability of data in any catastrophic situation.
The Bank has further reviewed its ICT Security and ICT Risk Management Policies and related internal
processes for strengthening security of information assets from internal and external threats. Gradual
implementation of the different policies is being carried out. Several sessions were conductedon ICT Security
and Risk for the employees of the Bank to build awareness and minimize ICT related risks in banking operation.
3.20.7 Environmental Risk Management (ERM)
Environmental and Social risk is assessed by E&S due diligence (ESDD) checklists. It is a set of questionnaire
provided by Bangladesh Bank. The purpose of the E&S due diligence is to review any potential E&S risks
associated with the business activities of a potential client ensure that the transaction does not carry
E&S risks, which could present a potential liability/risk to the Bank. The ESDD checklists (both generic and
sector specific) will auto generate the E&S risk ratings – high, medium and low based on the responses provided
to the questions in the checklist.
Potential E&S risks may not seem significant or relevant at the time of approval of a financial
transaction, but may become so during execution, for instance as a result of higher regulatory
standards and increased levels of enforcement. In other cases, E&S risks, such as spills or explosions, may
seem unlikely to occur, but when they do, the E&S impact is potentially extremely high. Therefore, to identify
Environment and Social (E&S) risks along with appropriate risk mitigation measures, Environment & Social Risks
Management must be integrated with the Credit Risk Management of the bank.

3.21 Compliance of Bangladesh Financial Reporting Standards (BFRSs)
Name of the standards Ref. Status

First-time Adoption of Bangladesh Financial Reporting Standards IFRS-1 Not applicable
Share-based Payment IFRS-2 Not applicable
Business Combinations IFRS-3 Applied
Insurance Contracts IFRS-4 Not applicable
Non-current Assets Held for Sale and Discontinued Operations IFRS-5 Applied
Exploration for and Evaluation of Mineral Resources IFRS-6 Not applicable
Financial Instruments: Disclosures IFRS-7 * Applied
Operating Segments IFRS-8 ** Applied
Financial Instruments IFRS-9 *Applied
Consolidated Financial Statements IFRS-10 Applied
Joint Arrangements IFRS-11 Not applicable
Disclosure of Interests in other Entities IFRS-12 Applied
Fair Value Measurement IFRS-13 * Applied
Regulatory Deferral Accounts IFRS-14 Not applicable
Revenue From Contracts with Customers IFRS-15 Applied
Presentation of Financial Statements IAS-1 * Applied
Inventories IAS-2 Not Applicable
Statement of Cash Flows IAS-7 * Applied
Accounting Policies, Changes in Accounting Estimates and Errors IAS-8 Applied
38
Name of the standards Ref. Status
Events after the Reporting Period IAS-10 Applied
Income Taxes IAS-12 Applied
Property, Plant and Equipment IAS-16 Applied
Leases IAS-17 Applied
Employee Benefits IAS-19 Applied
Accounting for Government Grants and Disclosure of Government IAS-20 Not Applicable
The Effects of Changes in Foreign Exchange Rates IAS-21 Applied
Borrowing Costs IAS-23 Applied
Related Party Disclosures IAS-24 Applied
Accounting and Reporting by Retirement Benefit Plans IAS-26 Not Applicable
Separate Financial Statements IAS-27 Applied
Investments in Associates IAS-28 Not Applicable
Financial Reporting in Hyperinflationary Economies IAS-29 Not Applicable
Financial Instruments: Presentation IAS-32 * Applied
Earnings per Share IAS-33 Applied
Interim Financial Reporting IAS-34 Applied
Impairment of Assets IAS-36 Applied
Provisions, Contingent Liabilities and Contingent Assets IAS-37 * Applied
Intangible Assets IAS-38 * Applied
Financial Instruments: Recognition and Measurement IAS-39 * Applied
Investment property IAS-40 Not Applicable
Agriculture IAS-41 Not Applicable
* Subject to departure described in note 2.1
** Subject to departure described in note 3.25
Standards issued but not yet effective:

A number of new standards and amendments to standards are effective for annual periods beginning after 1
January 2019 and earlier application is permitted; however, the Company has not early adopted the following
new or amended standards in preparing these financial statements. None of these is expected to have a
significant effect on the consolidated financial statements of the Group and the Bank when will be applicable.
A. IFRS 16 Leases
As per IFRS 16 Lease, a lease is a contract (or part of a contract) that conveys the right to control the use of an
identified asset for a period of time in exchange for consideration. IFRS 16 eliminates the classification of leases
by the lessee as either finance leases or operating leases. IFRS 16 requires a lessee to recognise a “right-of-
use” of the underlying asset and a lease liability reflecting future lease payments for most leases. For lessors,
IFRS 16 retains most of the requirements in IAS 17. Lessors continue to classify all leases as either operating
leases or finance leases and account for them differently. The Bank is reviewing all of the Company’s leasing
arrangements in light of the new lease accounting rules in IFRS 16.
B. IFRS 17 Insurance Contracts

Insurance Contracts are effective for annual periods beginning on or after 1 January 2021. Earlier adoption is
permitted. This has not been applied in preparing these consolidated and separate financial statements.
3.22 Credit Rating of the Bank
As per the BRPD circular No.6 dated 5 July 2006, the bank has done its credit rating by Credit Rating
Information and Services Limited (CRISL) based on the audited financial statements dated 31 December 2017.
Date of
Particulars Long term Short term
Rating
AA ST-2
Double A
Surveillance Rating
28-Jun-18 (High quality and High (High Grade)
Safety)
Outlook Stable
39
3.23 Correspondence items
Correspondence items are maintained to have control over all items of importance and for such transactions
where the Bank has only a business responsibility and no legal commitment. Stock of travelers cheques, savings
certificates, wage earners bond and others fall under the correspondence items.
3.24 Offsetting
Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and only
when, the Group and the Bank have a legal right to set off the recognised amounts and it intends either to settle
on a net basis or to realise the asset and settle the liability simultaneously.
Income and expenses are presented on a net basis only when permitted under IFRSs, or for gains and losses
arising from a group of similar transactions such as in the Group’s trading activity.
3.25 Operating segments
The Group and the Bank have no identified operating segment and as such presentation of segmental reporting
is not made in the financial statements as per IFRS 8. However, geographical and business segments wise
limited disclosures are furnished in Annexure-I.
3.26 Going concern basis of accounting
These financial statements have been prepared on the assessment of the Bank’s ability to continue as a going
concern. The Bank has neither any intention nor any legal or regulatory compulsion to liquidate or curtail
materially the scale of any of its operations. The key financial parameters (including liquidity, profitability, asset
quality, provision sufficiency and capital adequacy) of the Bank continued to exhibit a healthy trend for couple of
years. Besides, the management is not aware of any material uncertainties that may cast significant doubt upon
the Bank’s ability to continue as a going concern.
3.27 Approval of financial statements
The financial statements were approved by the board of directors on 30 April 2018.
3.28 General
Figures of previous year have been rearranged, whenever necessary, to conform the current year's presentation.
40
2018 2017
Note Taka Taka
4 Consolidated cash
In hand (including foreign currencies):

Southeast Bank Limited 4.1 3,598,790,655 3,010,980,173
Southeast Exchange Company (South Africa) Pty Ltd 23 1,202
Southeast Financial Services (Australia) Pty Ltd 61,419 1,600
3,598,852,097 3,010,982,975
(including foreign currencies):
Southeast Bank Limited 4.1 17,916,575,574 17,968,153,354
21,515,427,671 20,979,136,329
4.1 Cash
In hand:
Local currency 3,506,484,120 2,949,626,994
Foreign currencies 92,306,534 61,353,179
3,598,790,655 3,010,980,173
Balance with Bangladesh Bank:
Local currency 16,778,266,745 17,265,232,466
Foreign currencies 724,543,372 385,289,801
17,502,810,117 17,650,522,267
Balance with Sonali Bank Limited (as agent of Bangladesh Bank):
Local currency 413,765,457 317,631,087
Balance with Bangladesh Bank and its agent banks 17,916,575,574 17,968,153,354
(including foreign currencies)
21,515,366,229 20,979,133,527
4.2 Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in
accordance with section 33 of the Bank Companies Act, 1991 (Amended up to 2013), MPD Circular nos. 4 and 5
dated 1 December 2010 and MPD Circular no. 1 and 2 dated 23 June 2014 and 10 December 2013 respectively
and DOS Circular no.1 dated 19 January 2014 and MPD Circular No.1 dated 03 April 2018.
The statutory Cash Reserve Ratio on the Bank's demand and time liabilities at the rate of minimum 5.0% on daily
basis and 5.50% on bi-weekly basis for conventional and Islamic banking has been calculated and maintained
with Bangladesh Bank in current account and 13% Statutory Liquidity Ratio for conventional banking and 5.50%
Statutory Liquidity Ratio for Islamic banking on the same liabilities has also been maintained in the form of
treasury bills, bonds and debentures including excess cash reserve balance with Bangladesh Bank. Both the
reserves maintained by the Bank are in excess of the statutory requirements, as shown below:
4.2.1 a) Cash Reserve Ratio (CRR) for Conventional Banking
5.50% of average Demand and Time Liabilities:
Required reserve (Average daily on bi-weekly basis) 14,738,207,613 15,168,896,737

Actual reserve held 15,113,119,138 15,784,414,510
Surplus 374,911,525 615,517,773
b) Cash Reserve Ratio (CRR) for Islamic Banking
5.50% of average Demand and Time Liabilities:
Required reserve (Average daily on bi-weekly basis) 1,007,891,950 819,034,223

Actual reserve held 1,058,360,221 885,851,119
Surplus 50,468,271 66,816,896
41
2018 2017
Note Taka Taka
4.2.2 a) Statutory Liquidity Ratio (SLR) for Conventional Banking
Required reserve (13% of average Demand and Time Liabilities) 34,835,763,448 30,337,793,473
Actual reserve held 54,215,962,419 53,330,118,813
Surplus 19,380,198,971 22,992,325,340
Held for Statutory Liquidity Ratio of Conventional Banking:
Cash in hand 3,448,576,000 2,844,590,000

Balance with agent bank (Sonali Bank Limited) as per 399,436,000 315,211,000
Excess cash reserve 374,911,525 615,517,773
Government Securities (HFT) 10,816,964,383 16,167,101,000
Government Securities (HTM) 39,170,936,211 33,383,358,000
Other eligible securities/ Prize Bond 5,138,300 4,341,040
54,215,962,419 53,330,118,813
b) Statutory Liquidity Ratio (SLR) for Islamic Banking
Required reserve (5.50 % of average Demand and Time Liabilities) 1,007,891,950 693,028,958
Surplus 168,368,321 190,891,938
Held for Statutory Liquidity Ratio of Islamic Banking:
Cash in hand 150,220,000 166,396,000

Balance with agent bank (Sonali Bank Limited) as per 5,572,000 708,000
Government Securities (HTM) 970,000,000 650,000,000
1,176,260,271 883,920,896
5 Consolidated balance with other banks and financial institutions
In Bangladesh:
Southeast Bank Limited 6 3,984,794,486 3,196,881,943
Southeast Bank Capital Services Limited 23,324,151 32,538,042
4,008,118,637 3,229,419,985
Less: Inter company balance eliminated 23,324,151 32,538,042
3,984,794,486 3,196,881,943
Outside Bangladesh:
Southeast Bank Limited 6 2,272,907,523 965,226,853
Southeast Financial Services (UK) Ltd 15,447,609 10,861,425
Southeast Financial Services (Australia) Pty Ltd - 7,578
Southeast Exchange Company (South Africa) Pty Ltd 161,284,420 106,629,955
2,449,639,553 1,082,725,811
6,434,434,039 4,279,607,754
6 Balance with other banks and financial institutions
In Bangladesh 6.1 3,984,794,486 3,196,881,943

Outside Bangladesh 6.2 2,272,907,523 965,226,853
6,257,702,009 4,162,108,796
Also refer to note 6.3 for maturity wise grouping
42
2018 2017
Note Taka Taka
6.1 In Bangladesh
Current account with:
Agrani Bank Limited 30,576,275 575,850
Al Arafah Islami Bank Limited 79,276,813 45,265,708
Bangladesh Krishi Bank 5,116 -
BRAC Bank Limited 5,001 5,001
BRAC Bank Limited (El Dorado Network) 283,060 396,695
The City Bank Limited 8,205,526 4,661,023
Commercial Bank of Ceylon PLC 13,577 13,337
EXIM Bank Limited 23,515,071 20,643,735
The Farmers Bank Limited 866,009 3,551,600
Jamuna Bank Limited 47,917,936 50,113,699
Janata Bank Limited 24,392,635 29,747
Meghna Bank Limited 19,447,552 10,255,457
Mercantile Bank Limited 25,904,570 10,779,207
Modumoti Bank Limited 1,552,095 1,561,425
Mutual Trust Bank Limited 29,407,803 23,840,589
National Bank Limited 59,408 11,520,963
NRB Commercial Bank Limited - 100,000
One Bank Limited 1,186,410 (869,991)
Prime Bank Limited - 628
Rupali Bank Limited 25,000 -
Shahjalal Islami Bank Limited 550,000 550,000
Sonali Bank Limited (2,166,519) (1,411,805)
South Bangla Agriculture & Commerce Bank Limited 3,203,623 2,169,078
Trust Bank Limited 9 9
Union Bank Limited 25,137,481 21,993,167
United Commercial Bank Limited 36,882,184 8,547,767
356,246,634 214,292,889
Short term deposits account with:
AB Bank Limited 30,690 28,004
Eastern Bank Limited 26,799 29,556
Standard Chartered Bank 3,351,284 194,482
Sonali Bank Limited 28,611,897 27,719,571
Uttara Bank Limited - 345
538,547,852 32,589,054
Fixed deposits with other banks:
Commercial Bank of Ceylon Plc. - 400,000,000
Dhaka Bank Limited - 550,000,000
Jamuna Bank Limited - 250,000,000
Mutual Trust Bank Limited - 400,000,000
National Bank Limited - 500,000,000
Social Islami Bank Limited 500,000,000 -
Standard Bank Limited - 300,000,000
500,000,000 2,400,000,000
Fixed deposits with financial institutions:

Bay Leasing and Investment Limited 990,000,000 450,000,000
IDLC Finance Limited 500,000,000 -
Delta Brac Housing Finance Corporation Limited 500,000,000 -
Bangladesh Industrial Finance Company Limited 100,000,000 100,000,000
Investment Corporation of Bangladesh 500,000,000 -
2,590,000,000 550,000,000
3,984,794,486 3,196,881,943
43
2018 2017
Note Taka Taka
6.2 Outside Bangladesh
Current account
Interest bearing:
Standard Chartered Bank, New York, USA 344,142,271 86,529,828
Standard Chartered Bank, New York OBU 80,736,585 5,569,926
Citibank N.A, New York, USA 137,769,758 58,188,713
Standard Chartered Bank, London, UK 5,793,834 24,335,170
Mashreq Bank PSC, New York, USA 308,627,026 131,904,873
Wells Fargo Bank, N.A., New York, USA 4,588,519 87,426,417
Citibank AG, Frankfurt, Germany 67,721,709 54,683,457
Standard Chartered Bank, Kolkata, India 25,533,159 619,283
AB Bank Ltd., Mumbai, India 45,309,651 10,276,911
ICICI Bank Ltd., Mumbai, India 49,992,604 38,325,827
JP Morgan Chase Bank N.A., New York, USA 127,388,420 31,734,569
Habib American Bank, New York, USA 535,578,787 113,518,856
Mashreq Bank, Mumbai, India 30,091,175 33,413,883
Mashreq Bank, Mumbai, India 1,485,413 1,543,260
Sonali Bank (UK) Ltd. USD 0.04 257,277
Sonali Bank (UK) Ltd. GBP (0.15) 3,492,835
1,764,758,909 681,821,085
Non-interest bearing:
Bank of Sydney Ltd, Sydney 5,025,363 4,096,286
Banque Saudi Fransi, Riyadh 4,144,044 21,954,062
United Bank Limited, Karachi, Pakistan 3,694,384 3,567,858
Standard Chartered Bank, Colombo, Srilanka 29,860,364 19,877,855
Standard Chartered Bank, Mumbai (AEB), India 2,118,895 2,088,589
Bank of Tokyo, Mitsubishi, JPY 79,567,794 32,630,020
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal 27,900,081 22,317,811
Bank of Bhutan, Pheuntsholing, Bhutan 16,711,425 20,589,244
Commerz Bank AG, Frankfurt, Germany EURO 603,335 40,480,379
Commerz Bank AG, Frankfurt, Germany USD 175,698,521 40,185,050
Zuercher Kantonal Bank, Zurich, Switzerland 1,852,844 18,003,835
HDFC Bank, Mumbai, India 77,512,594 7,209,740
Habib Bank AG Zurich, Zurich, Switzerland 0.13 328,475
Mashreq Bank PSC, Dubai, UAE 69,162,123 2,843,673
Habib Metropoliton Bank Ltd., Karachi, Pakistan 14,296,848 47,232,891
508,148,614 283,405,768
2,272,907,523 965,226,853
Details of Balance with other banks-Outside Bangladesh shown in Annexure-C.
6.3 Maturity grouping of balance with other banks and financial institutions
On demand 3,684,700,000 1,179,519,742

Not more than three months 2,373,002,009 2,682,589,054
More than three months but not more than six months 200,000,000 300,000,000
More than six months but not more than one year - -
More than one year but less than five years - -
Above five years - -
6,257,702,009 4,162,108,796
44
2018 2017
Note Taka Taka
7 Money at call and on short notice
In bank:
One Bank Limited 50,000,000 -
National Credit and Commerce Bank Limited 100,000,000 350,000,000
National Bank Limited 700,000,000 -
Citi Bank N. A 500,000,000 -
Dhaka Bank Limited 300,000,000 -
Uttara Bank Limited 1,000,000,000 -
Standard Bank Limited - 150,000,000
The ICB Islamic Bank Limited 11,300,000 11,300,000
3,511,300,000 1,111,300,000
In non-banking financial institutions (public and private):
Bay Leasing and Investment Limited 410,000,000 340,000,000
Delta BRAC Housing Finance Corporation Limited 300,000,000 80,000,000
Investment Corporation of Bangladesh 390,000,000 500,000,000
IDLC Finance Limited 390,000,000
IPDC Finance Limited 50,000,000 -
1,540,000,000 920,000,000
In foreign currency:
BRAC Bank Limited - 330,800,000
Dhaka Bank Limited - 165,400,000
Eastern Bank Limited 587,300,000 413,500,000
Mercantile Bank Limited - 330,800,000
Mutual Trust Bank Limited 251,700,000 -
NCC Bank Limited 335,600,000 -
Pubali Bank Limited 251,700,000
Rupali Bank Limited - 124,050,000
The City Bank Limited 419,500,000
Shahjalal Islami Bank Limited - 165,400,000
United Commercial Bank Limited - 82,700,000
1,845,800,000 1,612,650,000
6,897,100,000 3,643,950,000
8 Consolidated Investments
Government securities:
50,963,038,896 50,204,799,973
Others:
Southeast Bank Capital Services Limited 2,725,796,239 2,587,875,942
14,646,513,537 12,706,244,499
65,609,552,433 62,911,044,472
9 Investments
Government securities:
Conventional Banking 9.1.1 49,993,038,896 49,554,799,973
Islamic Banking 9.2.1 970,000,000 650,000,000
50,963,038,896 50,204,799,973
Others:
Conventional Banking 9.1.2 8,675,863,435 7,327,778,746
Islamic Banking 9.2.2 3,244,853,863 2,790,589,811
11,920,717,298 10,118,368,557
62,883,756,194 60,323,168,530
Also refer to notes 9.3 to 9.8 for further analysis, maturity wise grouping, market value information, sector wise
investment, etc.
45
2018 2017
Note Taka Taka
9.1 Conventional Banking
9.1.1 Government Securities
Treasury Bills
91 days Treasury Bills - -
364 days Treasury Bills 968,626,000 -
968,626,000 -
Add: Reverse repo with other banks 1,002,951,720
Less:Assured Repo with Bangladesh Bank/ Others (at book value) - -
1,971,577,720 -
Prize Bonds 5,138,300 4,341,040

Bangladesh Bank Bills - -
5,138,300 4,341,040
Government Bonds
2 Years BGTB HTM - 1,000,090,436
5 Years BGTB HTM 8,720,163,602 5,175,910,399
10 Years BGTB HTM 14,729,336,147 13,916,649,159
15 Years BGTB HTM 7,485,640,185 6,490,177,303
20 Years BGTB HTM 7,269,670,916 5,836,710,538
Remeasured 10 years BGTB HTM 966,125,363 963,820,461
2 Years BGTB HFT 2,129,280,900 785,868,231
5 Years BGTB HFT 2,892,653,054 8,536,183,353
10 Years BGTB HFT 3,088,755,189 6,551,995,373
15 Years BGTB HFT 18,453,195 138,217,259
20 Years BGTB HFT 17,774,846 154,836,421
47,317,853,396 49,550,458,933
Add: Reverse repo with other banks (at book value) 698,469,480 -
Less: Assured Repo with Bangladesh Bank/ Others (at book value) - -
48,016,322,876 49,550,458,933
49,993,038,896 49,554,799,973
9.1.2 Others
Shares in listed companies 1,648,793,522 1,566,290,136

Shares in un-listed companies 77,069,912 61,488,610
Bonds 6,950,000,000 5,700,000,000
8,675,863,435 7,327,778,746
9.2 Islamic banking
9.2.1 Government securities
Bangladesh Government Islamic bond 970,000,000 650,000,000

970,000,000 650,000,000
9.2.2 Others

3,244,853,863 2,790,589,811
9.3 Investments classified as per Bangladesh Bank Circular

Held for trading (HFT) 10,816,964,383 16,171,441,677
Held to maturity (HTM) 40,146,074,513 34,033,358,296
Other securities 11,920,717,298 10,118,368,557
62,883,756,194 60,323,168,530
9.4 Maturity-wise grouping of investments
On demand 5,138,300 4,341,040
Not more than three months 1,607,800,000 2,621,953,085
More than three months but not more than one year 8,230,800,000 10,367,319,260
More than one year but not more than five years 30,097,800,000 21,622,020,484
Above five years 22,942,217,894 25,707,534,661
62,883,756,194 60,323,168,530
46
9.5 Cost and market value of investments

2018 2017
Cost price Market price Market price
Conventional Banking Taka Taka Taka
Treasury Bills 1,981,126,860 1,971,577,720 -

Bangladesh Government Treasury Bond 48,279,121,365 48,016,322,876 49,550,458,933
Prize Bonds 5,138,300 5,138,300 4,341,040
50,265,386,525 49,993,038,896 49,554,799,973
Islamic Banking
Bangladesh Government Islamic Bond 970,000,000 970,000,000 650,000,000

51,235,386,525 50,963,038,896 50,204,799,973
9.5.2 Others (Investment in Shares)

2018 2017
Market price Cost price Cost price
Conventional Banking Taka Taka Taka
Shares in listed companies 1,457,958,207 1,648,793,522 1,566,290,137

Shares in un-listed companies 77,069,912 77,069,912 61,488,610
1,535,028,119 1,725,863,435 1,627,778,747
Islamic Banking

2,623,643,648 3,244,853,863 2,790,589,811
Shares in listed companies
Investments have been recorded at cost and adequate provision has been maintained for probable future losses as
per Bangladesh Bank guidelines. Market value of shares has been determined on the basis of the value of shares at
the last trading day of the year.
Details are shown in Annexure-D.
9.6 Sector wise investment of shares
2018 2017
Shares in listed companies (A) Taka Taka Taka
Banks and NBFI 905,392,651 1,681,086,860 1,473,501,914

Insurance Companies 1,209,410,507 861,676,102 718,797,113
Fuel and Power Companies 274,925,783 381,160,963 246,110,932
Mutual Fund 366,656,060 293,475,095 305,380,556
Manufacturing & Other 1,325,216,854 1,676,248,365 1,613,089,433
4,081,601,855 4,893,647,386 4,356,879,948
- -
2018 2017
Net book value Cost price Cost price
Shares in un-listed companies (B) Taka Taka Taka
Banks and NBFI 114,666,920 54,183,820 54,183,820

Others 31,170,812 22,886,092 7,304,790
145,837,732 77,069,912 61,488,610
Total investment of shares (C=A+B) 4,970,717,298 4,418,368,558
The investments in shares of unlisted companies are shown at cost or net book value of the last audited balance
sheet, whichever is lower.
47
9.7 Market price and cost price of investments in ordinary shares as on 31 Dec 2018
Differences
SL. 2018
Name of the Company (Provision to be
no.
Market price Cost price required)
Taka Taka Taka
1 Asia Insurance 36,732,745 76,805,098 (40,072,353)
2 ACME Laboratories Limited 271,114,144 176,276,266 94,837,878
3 BAY Leasing and Investment Limited 280,453,126 653,782,763 (373,329,637)
4 EXIM Bank 192,288,092 370,656,956 (178,368,864)
5 EXIM Bank 1st MF 31,156,060 43,475,095
6 Lafarge Holcim Bangladesh Limited 43,500,000 89,321,368 (45,821,368)
7 Delta Life 7,502,195 12,382,964 (4,880,769)
8 National Life Insurance Company Limited 1,165,175,567 772,488,040 392,687,527
9 Prime Bank Limited 315,083,937 460,263,791 (145,179,854)
10 SEBL1ST MF 335,500,000 250,000,000 85,500,000
11 ACI Formulation 7,690,000 10,738,662 (3,048,662)
12 AFC Agro Biotech Limited 26,514,653 36,946,327 (10,431,674)
13 Active Fine Chemicals 18,053,155 21,204,434 (3,151,279)
14 AMAN Feed Limited 9,101,682 12,573,171 (3,471,489)
15 Aftab Automobiles Limited 85,682,310 145,359,192 (59,676,882)
16 Apolo Ispat 42,364,587 79,356,578 (36,991,991)
17 Argon Denim 17,316,130 22,675,929 (5,359,799)
18 Barka Power 65,743,532 80,616,388 (14,872,856)
19 BANGAS Limited 12,692,048 11,020,775 1,671,273
20 Bangladesh Building Systems 40,656,000 54,399,157 (13,743,157)
21 BD COM 25,135,302 29,697,505 (4,562,203)
22 BD FINANCE Limited 2,330,900 2,886,450 (555,550)
23 Bangladesh Thai Aluminium Limited 35,454,308 42,868,798 (7,414,490)
24 Beximco Limited 35,655,375 44,103,746 (8,448,371)
25 Bangladesh Shipping Corporation Limited 38,341,485 49,874,160 (11,532,675)
26 BSCCL 34,904,672 58,527,823 (23,623,151)
27 BSRM Limited 36,959,783 56,679,577 (19,719,794)
28 BSRM Steel Mills Limited 4,585,944 7,019,678 (2,433,734)
29 Bashundara Paper Mills Limited 7,542,000 11,647,591 (4,105,591)
30 Central Pharma 4,725,204 9,391,717 (4,666,513)
31 The City Bank Limited 634,200 824,675 (190,475)
32 Confidence Cement 46,812,600 47,548,604 (736,004)
33 Doreen Power 17,753,780 23,687,937 (5,934,157)
34 DESHBANDHU Polymer Limited 1,320,000 1,980,641 (660,641)
35 Eastern Bank Limited 4,320,000 4,564,389 (244,389)
36 Eastern Housing Limited 15,800,848 18,217,288 (2,416,440)
37 Fuwang Ceramic 6,960,583 7,967,868 (1,007,285)
38 FOURTUNE Shoes Limited 3,100,000 3,383,480 (283,480)
39 Golden Harvest Limited 14,865,833 18,665,067 (3,799,234)
40 Global Heavy Chemical Limited 23,807,785 34,247,190 (10,439,405)
41 GPH Ispat Limited 45,515,852 47,043,199 (1,527,347)
42 ICB 19,799,899 27,605,297 (7,805,398)
43 Indo Bangla Pharmacitical Limited 9,159 2,677 6,482
44 International Leasing Limited 17,955,794 24,424,191 (6,468,397)
45 INTRACO Refuling Station Limited 3,114,141 4,977,033 (1,862,892)
46 Islami Bank 9,680,000 15,986,816 (6,306,816)
47 Khulna Power Company Limited 65,647,786 116,697,597 (51,049,811)
48 Kattli Textile Limited 280,081 100,640 179,441
49 LankaBangla Finance Limited 37,412,955 63,609,848 (26,196,893)
50 Matin Spinning Limited 11,315,640 14,044,434 (2,728,794)
51 Mozaffar Hossain Spinning Mills Limited 10,780,473 20,059,098 (9,278,625)
52 MJL Limited 17,707,200 21,016,635 (3,309,435)
53 Meghna Petroleum Limited 18,890,930 22,603,106 (3,712,176)
54 METROSPIN 816,000 1,184,469 (368,469)
55 MLDYEING 125,603 35,242 90,361
56 National Polymar 5,446,666 6,271,005 (824,339)
57 National Tubes Limited 43,346,600 49,167,648 (5,821,048)
58 Olympic Accessories Limited 34,585,798 60,671,590 (26,085,792)
59 OLYMPIC Limited 10,810,000 12,280,119 (1,470,119)
60 Oimex Electrode Limited 164,505 193,491 (28,986)
61 Orion Pharma 44,302,821 61,952,895 (17,650,074)
62 Padma Oil Company Limited 11,196,944 12,487,427 (1,290,483)
63 Premier Cement 39,103,531 57,393,541 (18,290,010)
48
64 Premier Leasing 7,178,100 15,325,745 (8,147,645)
65 Prime Finance Limited 7,643,035 26,958,933 (19,315,898)
66 PRIMETEX Limited 7,233,429 8,288,244 (1,054,815)
67 Paramount Textile Limited 1,153,250 1,085,254 67,996
68 RN Spinning 6,095,525 12,812,929 (6,717,404)
69 RSRM STEEL Limited 53,140,758 77,550,224 (24,409,466)
70 Saif Power Tec Limited 9,821,370 13,859,527 (4,038,157)
71 SALAMCRST 22,954,800 31,969,454 (9,014,654)
72 SAPORTL 18,055,952 31,409,800 (13,353,848)
73 SILVA Pharmacitical Limited 276,709 91,930 184,779
74 Shasha Denim Limited 21,874,604 23,475,673 (1,601,069)
75 Shahjibazar Power Company Limited 58,586,400 79,199,118 (20,612,718)
76 Summit Power 4,138,970 4,622,232 (483,262)
77 SKTRIMS 256,738 50,410 206,328
78 Titas Gas 5,460,000 7,670,726 (2,210,726)
79 United Finance 10,612,613 14,197,006 (3,584,393)
80 United Power Generation 6,686,100 7,582,764 (896,664)
81 VFS Thread Deying Limited 244,072 38,388 205,684
82 WMSHIPYARD Sheppeard Limited 5,014,800 6,603,030 (1,588,230)
83 Zahen Spinning 18,066,097 33,151,273 (15,085,176)
84 Runner auto IPO 1,080,825 1,080,825 -
85 AND Telecom 569,040 569,040 -
86 SSSTEEL 134,920 134,920 -
87 Genex Infor 104,660 104,660 -
88 Esqure net IPO 1,880,145 1,880,145 -
4,081,601,855 4,893,647,386 (799,726,496)
Actual provision 799,726,500
Surplus/(deficit) 4
9.8 Transactions of Repo and Reverse-repo during the year
Minimum Maximum Daily average

outstanding outstanding outstanding
Taka Taka Taka
2018
Securities sold under repo
i) With Bangladesh Bank - - -
ii) With other Banks & FIs 156,713,657 1,535,260,080 47,674,919
Securities purchased under reverse repo

2017
Securities sold under repo
Securities purchased under reverse repo

49
2018 2017
Note Taka Taka
10 Consolidated loans and advances/investments
Loans, cash credit, overdrafts etc./investments:

Southeast Bank Capital Services Limited 2,467,417,246 2,465,716,400
255,400,659,122 223,657,502,019
Less: Inter company balance eliminated -
255,400,659,122 223,657,502,019
Bills purchased and discounted:
12,270,968,683 10,659,214,310
267,671,627,805 234,316,716,329
11 Loans and advances/investments
Loans, cash credit, overdrafts etc./investments 11.1 252,933,241,876 221,191,785,619
Bills purchased and discounted 11.14 12,270,968,683 10,659,214,310
265,204,210,559 231,850,999,929
11.1 Loans, cash credit, overdrafts etc./Investments
In Bangladesh:
Conventional Banking
Demand loan 7,446,663,360 6,523,478,141
Time loan 27,005,835,559 25,706,837,604
Term loan 99,358,892,070 79,529,348,385
Agricultural credit-Term 995,463,927 1,673,427,615
Agricultural credit-Time 1,163,473,709 1,661,209,453
Agricultural credit-OD 189,825,090 185,519,891
Consumer credit scheme 2,988,823 3,963,882
Car loan 128,683,786 109,247,296
Personal loan 478,889,995 473,932,761
Home loan 1,256,450,806 948,808,661
Rural Home Loan 170,362,632 -
Loan against - LTFF 174,436,799 -
Loan against GTF 10,864,315 -
Cash credit and overdrafts 58,603,918,907 52,900,215,618
Bills Against Letter of Credit (BLC) 120,286,863 1,009,677,345
Loan re-finance housing sector 15,557,895 18,246,407
Loan against Trust Receipt (LTR) 16,566,111,770 17,985,066,720
Advances-packing credit (PC) 3,210,961,945 3,564,356,842
Loan against foreign bills 120,081,946 97,119,159
House building loan-staff 365,431,298 272,796,136
Digital device 45,859 22,444
Export Development Fund (EDF) 18,199,188,944 12,931,627,959
Loan against cash incentive 132,117,051 79,738,862
Loan-credit card 1,889,094,911 1,553,275,922
237,605,628,260 207,227,917,101
Islamic Banking
Demand investment 528,987,815 414,036,921
Bai-Muajjal (Time) investment 195,402,971 399,099,215
Bai-Muajjal Time under CCS 79,622,265 74,507,241
Bai-Murabaha-BLC - 28,009,964
Bai-Murabaha-LTR 1,193,826,782 800,511,034
Bai-Salam (advances-packing credit) 149,133,314 64,089,258
Staff house building investment 16,635,522 12,806,256
Export Development Fund (EDF) 773,063,701 712,130,203
Investment against cash incentive 17,131,016 19,626,562
Bai-Muajjal-investment 3,833,616,144 3,668,800,807
Murabaha-investment 617,028,554 639,319,763
Hire purchase-investment 7,923,165,532 7,130,931,292
15,327,613,616 13,963,868,518
252,933,241,876 221,191,785,619
Outside Bangladesh - -
252,933,241,876 221,191,785,619
50
2018 2017
11.2 Performing loans and advances/investments Note Taka Taka
Gross loans and advances/investments 265,204,210,559 231,850,999,929

Non-performing loans and advances/investments (15,558,851,040) (13,878,533,441)
249,645,359,519 217,972,466,488
11.3 Maturity-wise grouping of loans and advances/investments
On demand 35,920,100,000 53,542,866,451

Less than three months 42,398,300,000 30,554,565,718
More than three months but less than one year 93,389,800,000 67,733,374,239
More than one year but less than five years 55,815,500,000 49,479,816,953
More than five years 37,680,510,559 30,540,376,568
265,204,210,559 231,850,999,929
11.4 Concentration of loans and advances/investments
Advances to allied concerns of directors -

Advances to chief executive and other senior executives 121,693,360 102,834,000
Advances to customers' group:
Advances to large and medium industries 180,151,419,488 144,177,565,166
Advances to small and cottage industries 12,993,557,061 8,823,634,834
Commercial Loans 43,670,568,760 47,819,953,689
Consumer Credit 4,052,000,000 3,449,384,677
Off-shore Banking Loans 11,744,269,214 8,124,620,108
Other loans and advances 12,470,702,676 19,353,007,455
265,204,210,559 231,850,999,929
Details of large loan/investments
As at 31 December 2018 there were 34 (2017:29) clients with whom amount of outstanding loans and advances
exceeded 10% of the total capital of the Bank. Total capital of the Bank was Tk 38,755.80 million as at 31 December
2018 (Tk. 33,679.04 million as at 31 December 2017).
The Bank complies with the requirements of the section 26 (b) of the Bank Companies Act 1991 as amended in 2013
in connection with the general limitations of credit line.
Details are shown in Annexure-D.
11.5 Sector-wise allocation of loans and advances

2018 2017
% of % of
total total
loan Taka loan Taka
Agriculture 0.99% 2,630,200,000 1.48% 3,432,400,000

Industrial (Manufacturing) 47.98% 127,250,714,579 43.06% 99,834,698,971
Industrial (Services) 16.26% 43,128,100,528 15.73% 36,476,966,000
Export Financing 8.68% 23,019,757,073 7.49% 17,371,600,000
Commercial Loans 16.47% 43,670,568,760 20.63% 47,819,953,689
Consumer Credit 1.53% 4,052,000,000 1.49% 3,449,384,677
Others: -
a) Off-shore Banking Loans 4.43% 11,744,269,214 3.50% 8,124,620,108
b) Finance to NBFIs 0.60% 1,582,459,039 0.74% 1,718,300,000
c) Loans to Capital Market 0.54% 1,436,350,764 0.52% 1,214,900,000
d) Miscellaneous 2.52% 6,689,790,600 5.35% 12,408,176,484
100.00% 265,204,210,559 100.00% 231,850,999,929
51
2018 2017
Note Taka Taka
11.6 Industry-wise loans and advances (Industrial Loan)
Ready Made Garment industries Loan (RMG) 50,850,227,088 42,784,200,000

Real Estate industries 20,733,831,268 19,027,600,000
Textile industries 15,234,847,108 15,926,800,000
Agro-Based Industries 13,015,700,000 10,716,234,000
Cement & Ceramics industries 6,316,200,000 5,364,057,313
Ship Breaking & Ship Building industries 4,934,201,824 5,117,000,000
Pharmaceuticals industries 1,870,500,000 1,226,120,300
Other Industries 80,189,496,736 52,839,188,388
193,145,004,024 153,001,200,000
Figures of previous year have been rearranged in notes no: 11.4 , 11.5 and 11.6 to conform the current year's presentation
11.7 Category-wise Small Medium Enterprise loans and advances (SME)
Service sector 18,175,639,030 11,190,600,000

Trading sector 25,165,945,179 18,907,900,000
Industrial sector 30,428,060,601 9,456,700,000
73,769,644,810 39,555,200,000
11.8 Geographical location-wise allocations of loans and advances
2018 2017
% of % of
total total
loan Taka loan Taka
Urban:
Dhaka region 74.35% 197,182,734,167 70.60% 163,690,795,982
Chittagong region 15.92% 42,216,725,245 18.54% 42,983,259,723
Rajshahi region 1.89% 5,014,000,055 1.96% 4,537,207,496
Sylhet region 1.22% 3,238,713,660 1.41% 3,279,114,783
Khulna region 0.55% 1,470,516,829 0.73% 1,700,376,628
Rangpur region 0.32% 836,234,155 0.35% 818,059,650
Barisal region 0.08% 220,365,353 0.08% 180,987,657
Mymensingh region 0.15% 386,439,156 0.17% 385,638,011
94.48% 250,565,728,620 93.84% 217,575,439,930
Rural:
Dhaka region 2.94% 7,792,380,927 3.27% 7,574,813,414
Chittagong region 1.80% 4,769,399,131 1.89% 4,390,520,410
Sylhet region 0.37% 969,841,873 0.39% 907,113,613
Rajshahi region 0.16% 425,224,948 0.24% 561,204,488
Khulna region 0.26% 681,635,060 0.36% 841,908,074
5.52% 14,638,481,939 6.16% 14,275,559,999
100.00% 265,204,210,559 100.00% 231,850,999,929
11.9 Classification of loans and advances
2018 2017
% of % of
total total
loan Taka loan Taka
Unclassified:
Standard including staff loan 90.53% 240,083,546,744 88.67% 205,583,791,156
Special Mention Account (SMA) 3.61% 9,561,812,775 5.34% 12,388,675,332
94.13% 249,645,359,519 94.01% 217,972,466,488
Classified:
Sub-standard 0.06% 171,210,454 0.54% 1,244,359,189
Doubtful 0.14% 359,641,627 0.32% 753,245,200
Bad/loss 5.67% 15,027,998,959 5.12% 11,880,929,051
5.87% 15,558,851,040 5.99% 13,878,533,441
100.00% 265,204,210,559 100.00% 231,850,999,929
52
2018 2017
Taka Taka
11.10 Particulars of loans and advances
i) Debts considered good in respect of which the bank is fully secured; 227,388,609,049 174,834,922,331
ii) Debts considered good for which the bank holds no other security
than the debtors' personal security; 14,096,135,395 32,167,636,499
iii) Debts considered good secured by the personal liabilities of one

or more parties in addition to the personal security of the debtors; 23,709,761,059 24,848,441,099
iv) Debts adversely classified; provision not maintained - -
v) Debts due by directors or officers of the bank or any of them

either severally or jointly with any other persons; 375,355,363 284,774,135
vi) Debts due by companies or firms in which the directors or officers

of the bank are interested as directors, partners or managing agents
or, in case of private companies, as members; - -
vii) Maximum total amount of advances, including temporary

advances made any time during the year to directors or managers
or officers of the bank or any of them either severally or jointly
with any other persons; 375,355,363 284,774,135
viii) Maximum total amount of advances, including temporary advances

granted during the year to companies or firms in which the directors
of the bank are interested as directors, partners or managing agents
or, in case of private companies, as members; - -
ix) Due from banking companies; - -
x) Classified loans/investments for which interest has not been charged:
(a) Increase/(decrease) of provision (specific) 3,333,219,044 2,900,396,650

Amount of debts written off 2,044,946,488 1,030,097,472
Amount realised against the debts previously written off 404,812,584 154,213,601
(b) Provision against the debt classified as

bad/loss at the date of balance sheet 7,024,062,597 4,982,251,548
(c) Amount of interest charged in suspense account 5,995,927,271 4,402,732,281
xi) Loans written off:

- Current year 2,538,512,754 1,286,795,227
Cumulative to-date 12,216,835,740 10,209,184,626
- The amount of written off loans

for which lawsuit filed 12,216,835,740 10,209,184,626
53
11.11 Particulars of required provision for loans and advances/investments
2018 2017
Status Outstanding Base for % of Required Required
as at 31 Dec 2018 provision required provision provision
Taka Taka provision Taka Taka
For loans and advances/ Investments:
Unclassified-general provision
All unclassified loans
(other than small enterprises,
housing finance, Loan to MBs
loans for professional, consumer
financing and special mention
account) 169,795,101,016 169,795,101,016 1% 1,697,951,010 1,642,933,199
Small and medium enterprise 63,264,434,215 63,264,434,215 0.25% 158,161,088 85,799,421

financing
Loan to BHs/MBs/SDs against 1,436,350,764 1,436,350,764 2% 28,727,015 24,297,408

shares
Housing and loan for 1,519,081,966 1,519,081,966 1%-2% 15,971,406 21,501,397

professional
Consumer finance 2,430,853,320 2,430,853,320 2%-5% 67,997,386 56,535,590
Agriculture finance 1,262,896,159 1,262,896,159 1%-5% 12,628,962 23,945,436
Staff loan 374,829,304 374,829,304 1% 3,748,293 2,839,626
Special Mention Account (SMA) 9,561,812,775 9,333,771,432 0.25%-5% 97,181,570 145,454,148

2,082,366,729 2,003,306,225
Classified-specific provision:
Sub-standard 171,210,454 119,381,536 5%-20% 20,020,046 110,536,686
Doubtful 359,641,627 228,991,968 5%-50% 113,035,177 170,892,722
Bad/loss 15,027,998,959 7,024,062,597 100% 7,024,062,597 4,982,251,548
265,204,210,559 256,789,754,276 7,157,117,820 5,263,680,956
Required provision for loans and advances (A) 9,239,484,549 7,266,987,181
Total provision maintained (B) 13,283,300,001 10,069,290,980
Excess provision as at 31 December (C=B-A) 4,043,815,452 2,802,303,797
54
2018 2017
Note Taka Taka
11.12 Suits filed by the Bank (Branch wise details)
Aganagar Branch 20,606,565 24,601,270
Agargaon Branch 28,740,963 106,715,269
Agrabad Branch 3,559,051,883 3,533,041,603
Banani Branch 1,011,368,047 1,011,368,047
Bandar Bazar Branch 49,554,021 49,554,021
Bandura Branch 5,660,298 -
Baneshwar Branch 10,773,766 -
Bangshal Branch 731,009,992 729,354,206
Bashundhara Branch 20,976,301 -
Bashurhat Branch 3,108,991 -
Biswanath Branch 2,083,587 -
Bogra Branch 394,934,357 118,153,762
Brahmanbaria Branch 14,126,982 14,126,982
CDA Avenue Branch 1,303,347,718 1,279,158,963
Chapainawabgonj Branch 7,964,715 7,964,715
Chowdhuryhat Branch 7,777,683 -
Chouhatta Branch 35,429,721 29,324,351
Chowmuhoni Branch 28,016,032 28,016,032
Comilla Branch 47,265,325 -
Companygonj Branch 12,162,624 -
Corporate Branch 97,479,009 56,546,456
Cox's Bazar Branch 372,592,835 81,196,958
Dhanmondi Branch 1,956,729,814 1,840,299,125
Dinajpur Branch 15,224,750 11,277,731
Donia Branch 4,345,474 -
Gulshan Branch 588,769,873 119,450,152
Halishahar Branch 2,035,945,543 2,018,990,181
Hathazari Branch 6,086,747 6,086,747
Hemayetpur Branch 3,590,035 -
Hetimgonj Branch 4,720,580 -
Imamgonj Branch 298,675,545 298,675,545
Jessore Branch 78,422,418 73,008,143
Jubilee Road Branch 42,730,094 41,758,043
Kakrail Branch 116,570,126 41,352,380
Kawranbazar Branch 298,470,311 297,083,230
Khatungonj Branch 1,222,123,411 859,750,230
Khulna Branch 98,484,842 98,484,842
Konabari Branch 1,862,261 1,862,261
Kotowali Branch 102,783,756 88,541,987
Kulaura Branch 6,965,264 6,965,264
Lohagara Branch 5,020,503 5,020,503
Laldighirpar Branch 142,833,996 113,465,769
Madambibirhat Branch 133,373,278 73,945,318
Madhabdi Branch 56,355,195 56,355,195
Mawna Branch 1,968,254 -
Mirpur Branch 14,659,835 -
Mohakhali Branch 52,035,572 -
Mohammadpur Branch 969,386,296 16,555,592
Momin Road Branch 506,269,625 280,105,740
Motijheel Branch 185,545,788 185,545,788
Mouchak Branch 129,189,304 101,910,981
Moulvibazar Branch 176,748,221 176,748,221
Naogaon Branch 44,418,957 45,095,755
Narayangonj Branch 61,570,175 67,174,359
New Elephant Road Branch 1,160,344,705 509,137,748
New Eskaton Branch 265,105,816 171,613,578
Oxygenmore Branch 7,253,948 7,253,948
Pahartoli Branch 826,535,766 826,535,766
Pahantula Branch 6,287,866 -
Principal Branch 7,533,160,574 5,860,973,599
Progoti Soroni Branch 358,264,233 235,817,088
Rajshahi Branch 558,348,642 -
Rangpur Branch 71,809,059 -
Rupnagar Branch 18,177,710 6,068,408
Sat Mashjid Road Branch 24,402,722 -
Saver Branch 1,992,139 -
Shyamoli Branch 80,148,835 73,453,562
Shahjalal Uposhahar Branch 111,505,535 141,598,745
Sir Iqbal Road Branch 14,315,940 14,315,940
Uttara Branch 265,683,942 265,683,942
28,429,244,691 22,107,084,042
55
2018 2017
Note Taka Taka
11.13 Listing of assets pledged as security/collaterals
Nature of the secured assets
Shares & Securities 1,628,543,392 2,393,560,755
Merchandise 3,121,194,707 1,979,609,787
Machinery with other fixed asset and financial obligation 6,294,508,398 9,573,750,430
Real estate with financial obligation 207,857,846,545 170,418,844,517
Financial obligation only 8,110,762,157 12,008,281,446
(Insurance policies, savings certificates,
bank deposit etc)

Miscellaneous-
i) Crops/stock of crops hypothecation 974,760,191 628,811,625
ii) Guarantee of individuals/institutions 27,346,728,778 28,608,939,170
ii) Others 9,869,866,390 6,239,202,199
265,204,210,559 231,850,999,929
11.14 Bills purchased and discounted
Conventional Banking
In Bangladesh 3,591,727,500 3,358,027,075
Outside Bangladesh 8,322,147,295 7,027,904,759
11,913,874,795 10,385,931,834
Islamic Banking
In Bangladesh 357,093,888 255,665,585
Outside Bangladesh - 17,616,891
357,093,888 273,282,476
12,270,968,683 10,659,214,310
11.15 Maturity grouping of bills discounted and purchased

Within one month 5,422,081,397 3,279,484,642
More than one month but less than three months 3,318,600,047 3,480,327,845
More than three months but less than six months 3,060,593,182 2,540,297,150
More than six months 469,694,057 1,359,104,673
12,270,968,683 10,659,214,310
11.16 Information about restructured loan as per Bangladesh Bank's BRPD Circular no. 4 dated 29 January 2015
Loans amounting to Tk. 3,103.80 million (outstanding Tk.2,798.60 million as on 31 December 2018) of Keya Group, Gulshan Branch,
Dhaka have been restructured by extension of validity of Term Loan for 12-years & conversion of demand loan into 06-years Term
Loan including one year moratorium under the purview of BRPD Circular # 04 dated 29 January 2015. The status of the loans is
unclassified and reported as SMA as per Bangladesh Bank's guidelines. Accordingly, 2% provision has been made.
12 Consolidated fixed assets including premises, furniture and fixtures
Cost:
Southeast Financial Services (Australia) Pty Ltd 2,520,519 2,752,018
11,939,642,605 11,563,406,818
Less: Accumulated depreciation
Southeast Financial Services (Australia) Pty Ltd 1,919,000 1,999,468
2,602,347,445 2,241,610,692
Written down value at the end of the year 9,337,295,160 9,321,796,126
There were no capitalized borrowing cost related to the acquisition of fixed assets during the year (2017: nil).
Details of consolidated amounts have not been provided as such amounts are insignificantly different from those of the Banks.
56
2018 2017
Note Taka Taka
13 Fixed assets including premises, furniture and fixtures
Cost:
Land 5,797,250,693 5,770,913,319
Buildings 1,989,262,277 1,897,220,492
Furniture and fixtures 1,331,911,302 1,205,150,111
Office appliances 15,282,870 14,620,108
Computer 272,016,322 255,021,073
Electrical appliances 1,387,170,289 1,310,729,568
ATM Booth 252,882,264 207,974,413
Motor vehicles 131,007,532 140,354,615
11,176,783,549 10,801,983,699
Buildings 526,877,198 469,770,862
Furniture and fixtures 640,658,640 571,449,165
Computer 128,482,224 93,708,239
Electrical appliances 857,053,965 743,073,333
ATM Booth 130,074,144 105,072,021
Motor vehicles 101,088,397 101,253,236
2,394,419,803 2,093,414,431
Written down value at the end of the year 8,782,363,746 8,708,569,268
Details are shown in Annexure-E.
14 Consolidated other assets

Southeast Financial Services (Australia) Pty Ltd 718,855 2,377,516
Southeast Exchange Company (South Africa) Pty Ltd 1,530,861 272,024
9,669,516,001 9,355,656,333
Less:
Investment in subsidiary:
In Bangladesh 5,489,930,000 5,452,930,000
Outside Bangladesh 65,100,021 65,100,021
5,555,030,021 5,518,030,021
Intercompany balance 4,244,208 1,823,132
4,110,241,772 3,835,803,180
57
2018 2017
Note Taka Taka
15 Other assets 9,554,422,290 9,241,315,075
15.1 Classification of other assets
i) Investment in shares of subsidiary companies:

- In Bangladesh 15.3 5,489,930,000 5,452,930,000
- Outside Bangladesh 15.4 65,100,021 65,100,021
ii) Stationery, stamps, printing materials, etc. 42,239,443 57,534,926
iii) Advance rent and advertisement 343,744,413 368,571,028
iv) Interest accrued on investment but not collected,
commission and brokerage receivable on shares
and debentures, and other income receivables 1,585,574,838 1,458,019,937
v) Security deposits 4,622,119 3,017,779
vi) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 1,185,521,300 829,109,496
vii) Suspense account 49,531,540 159,698,380
viii)Others 788,158,615 847,333,508
9,554,422,290 9,241,315,075
15.2 Non-income generating other assets
i) Stationery, stamps, printing materials, etc. 42,239,443 57,534,926

ii) Advance rent and advertisement 343,744,413 368,571,028
iii) Suspense account 49,531,540 159,698,380
iv) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 1,185,521,300 829,109,496
1,621,036,697 1,414,913,830
15.3 Investment in shares of subsidiary company

in Bangladesh
Cost 5,489,930,000 5,489,930,000

Provision for impairment loss - (37,000,000)
5,489,930,000 5,452,930,000
15.4 Investment in shares of subsidiary companies
outside Bangladesh
Cost 113,660,069 113,660,069

Provision for impairment loss (48,560,048) (48,560,048)
65,100,021 65,100,021
15.5 Particulars of required provision for other assets
Base for
Rate (%) Taka
provision
2018
Legal expenses for defaulting borrowings 12,433,639 50% 6,216,819
Others - 50% -
Others 145,000,000 100% 145,000,000
Protested bills 3,581,157 100% 3,581,157
Nostro account balance - 100% -
Required provision on other assets 218,340,551
Total provision maintained 233,735,000
Excess provision 15,394,449
Base for
Rate (%) Taka
provision
2017
Others - 50% -
Others 75,000,000 100% 75,000,000
Protested bills 3,581,157 100% 3,581,157
Nostro account balance - 100% -
Required provision on other assets 144,998,044
Total provision maintained 163,735,000
Excess provision 18,736,956
58
2018 2017
Note Taka Taka
16 Consolidated borrowings from other banks, financial
institutions and agents
Subordinated bond:
11,800,000,000 7,400,000,000
Other borrowings:
Southeast Bank Capital Services Limited 54,208,827 -
11,211,700,343 10,181,648,728
Less: Inter company balance eliminated -
11,211,700,343 10,181,648,728
23,011,700,343 17,581,648,728
17 Borrowings from other banks, financial institutions

and agents
Subordinated Bond 17.2.ii 11,800,000,000 7,400,000,000

Other borrowings 17.2.i +17.3 11,157,491,516 10,181,648,728
22,957,491,516 17,581,648,728
17.1 Borrowing from other banks, financial institutions

and agents
In Bangladesh 17.2 12,260,241,516 9,766,498,728

Outside Bangladesh 17.3 10,697,250,000 7,815,150,000
22,957,491,516 17,581,648,728
17.2 In Bangladesh
i. Secured:
Refinance against agro-based credit from Bangladesh Bank 5,355,119 7,159,548
Refinance for housing sector from Bangladesh Bank 62,084,981 29,223,507
Refinance against SME loan from Bangladesh Bank 97,098,757 24,125,625
Refinance against Solar energy, Bio Gas & ETP - -
Scheme from Bangladesh Bank 5,555,552 1,766,840
Refinance against RPGCL 9,382,652 39,583,208
Borrowing from IDCOL 280,764,456 264,640,000
Bangladesh Bank Islamic Bond - 2,000,000,000
460,241,516 2,366,498,728
59
2018 2017
Note Taka Taka
ii. Unsecured:
Subordinated Bond
Rupali Bank Limited 1,600,000,000 1,050,000,000
Sonali Bank Limited 2,200,000,000 1,600,000,000
Agrani Bank Limited 2,250,000,000 850,000,000
Pubali Bank Limited 1,330,000,000 1,240,000,000
Mercantile Bank Limited 150,000,000 200,000,000
Saudi-Bangladesh Industrial and Agricultural Investment Company Ltd. 120,000,000 160,000,000
Sadharan Bima Corporation 200,000,000 100,000,000
Uttara Bank Limited 200,000,000 200,000,000
Dhaka Bank Limited 750,000,000 750,000,000
National Life Insurance Limited 1,250,000,000 750,000,000
Janata Bank Limited 1,500,000,000 500,000,000
Delta Life Insurance Co. Limited 250,000,000 -
11,800,000,000 7,400,000,000
Total (iii=i+ii) 12,260,241,516 9,766,498,728
17.3 Outside Bangladesh
Secured
Borrowing from MASHREQ BANK PSC-USD - 827,000,000
Borrowing from Commercial Bank of Qatar (CBQ) 1,678,000,000 661,600,000
Borrowing from RAK BANK, UAE 1,384,350,000 1,240,500,000
Borrowing from Bank Muscat, Oman - 661,600,000
Borrowing FM SCB SINGAPORE 2,097,500,000 -
Borrowing FM EIB, UAE 1,342,400,000 -
Borrowing from FGB, UAE 1,258,500,000 827,000,000
Borrowing FM NMB Bank, Nepal 419,500,000
Borrowing from HDFC BANK, Hong Kong - 413,500,000
8,180,250,000 4,631,200,000
Unsecured -
Borrowing from International Finance Corporation (IFC) - 1,240,500,000
Borrowing from Global Climate Partnership Fund S.A. 1,678,000,000 1,654,000,000
Borrowing from ADB 839,000,000 289,450,000
2,517,000,000 3,183,950,000
10,697,250,000 7,815,150,000
17.4 Maturity grouping of borrowings
Repayable on demand - -
Repayable within one month 1,266,890,000 1,327,000,000
Over one month but within six months 7,613,624,456 5,858,290,000
Over six months but within one year 2,019,500,000 1,240,500,000
Over one year 12,057,477,060 9,155,858,728
22,957,491,516 17,581,648,728
18 Consolidated deposits and other accounts
Current/Al-wadeeah current accounts and

other accounts
Southeast Bank Limited 40,457,857,551 35,516,538,988
40,495,389,913 35,544,063,409
40,472,065,762 35,511,525,367
Bills payable
Southeast Bank Capital Services Limited - -
4,494,551,361 4,933,769,345
Savings bank/Mudaraba savings bank deposits
27,259,920,347 23,896,582,534
Fixed deposits/Mudaraba fixed deposits
226,108,257,117 205,486,197,802
298,334,794,587 269,828,075,048
60
2018 2017
Note Taka Taka
19 Deposits and other accounts
Current/Al-wadeeah current accounts and other accounts
Current/Al-wadeeah current deposits 11,250,432,310 11,660,602,738
Foreign currency deposits 1,341,263,887 1,172,088,721
Sundry deposits 19.1 27,866,161,354 22,683,847,529
40,457,857,551 35,516,538,988
Bills payable
Payment order issued 4,490,503,198 4,929,177,495
Demand draft 4,048,163 4,591,850
4,494,551,361 4,933,769,345
Fixed deposits/Mudaraba fixed deposits
Special notice/Mudaraba special notice deposits 29,844,075,615 32,795,221,961
Scheme deposits 17,365,549,746 16,206,340,313
Interest payable on FDR/Scheme 3,502,408,519 2,226,047,542
226,108,257,117 205,486,197,802
298,320,586,377 269,833,088,669
19.1 Sundry deposits
Margin under letter of credit 2,799,904,442 2,763,811,423
Margin against IBP 36,031,780 2,204,555
Margin against FBP 14,988,274 17,555,879
Margin under letter of guarantee 1,353,760,605 1,153,632,058
Margin against time loan to issue pay order 100,968,639 60,032,178
Deposit held against FDBP/IDBP, export bills etc. 17,968,410 61,711,823
FC held against EDF L/C and LTFF 17,030,469,804 12,794,398,617
Accounts payable 5,331,896 2,661,165
Telegraphic transfer 780,290 1,155,260
Margin on acceptance 6,261,054,275 5,606,379,466
Remittance awaiting disposal 6,787,264 8,665,791
Others 238,115,674 211,639,314
27,866,161,354 22,683,847,529
19.2 Deposits from banks and others
Inter-bank deposits 19.3 10,814,479,860 12,808,254,410

Other deposits 287,506,106,516 257,024,834,259
298,320,586,377 269,833,088,669
19.3 Inter-bank deposits

AB Bank Limited 54,059 2,542,053
Agrani Bank Limited 3,500,000,000 2,000,000,000
Al-Arafa Islami Bank Limited 514,380,491 509,579,016
BASIC Bank Limited - 500,000,000
Bangladesh Krishi Bank 250,000,000 500,000,000
Citibank N.A. 114,722,610 280,631,821
Commercial Bank of Ceylon Plc. 650,000,000 -
Dhaka Bank Limited - 211,789
First Security Islami Bank Limited 160,383 3,147,809
Habib Bank Limited - 200,000,000
IFIC Bank Limited 264,244 259,920
Islami Bank Bangladesh Limited 8,418,107 2,258,232,880
Meghna Bank Limited 4,970 6,765,214
Mercantile Bank Limited 221,567 218,427
Mutual Trust Bank Limited 1,196,746 510,312
NRB Commercial Bank Limited 18,955,006 390,689
Prime Bank Limited 500,000,000 500,000,000
Pubali Bank Limited 500,000,000 -
Rajshahi Krishi Unnayan Bank (RAKUB) 140,000,000 -
Rupali Bank Limited - 1,000,000,000
State Bank of India 400,000,000 -
Sonali Bank Limited 4,000,000,000 2,250,000,000
Shahjalal Islami Bank Limited 451,703 442,850
Standard Chartered Bank 200,000,000 -
Social Islami Bank Limited(SIBL) 329,285 323,177
The Trust Bank Limited 2,855 300,003,926
United Commercial Bank Limited - 1,980,000,000
Uttara Bank Limited - 500,031,250
10,814,479,860 12,808,254,410
61
2018 2017
Note Taka Taka
19.4 Sector-wise deposits
Government 8,556,499,639 6,669,198,828

Deposit money banks 10,814,479,860 12,808,254,410
Other public 22,396,797,707 33,099,336,060
Foreign currency 1,359,393,796 1,233,469,083
Private 255,193,415,374 216,022,830,288
298,320,586,377 269,833,088,669
19.5 Unclaimed Deposits and valuables
Payment Order 221,282 952,972

221,282 952,972
19.6 Analysis of residual maturity grouping of deposits
Inter-bank deposits:
Payable on demand 115,926,268 284,854,504
Within one month 58,553,592 4,593,399,906
More than one month but less than six months 10,500,000,000 7,930,000,000
More than six months but less than one year -
More than one year but less than five years - -
More than five years but less than ten years - -
10,674,479,860 12,808,254,410
Other Deposits:
Payable on demand 5,423,373,732 97,457,839,958
Within one month 39,928,646,408 10,193,683,482
More than one month but less than six months 66,301,561,377 100,979,387,420
More than six months but less than one year 68,761,725,000 20,760,331,750
More than one year but less than five years 93,513,400,000 21,625,933,190
More than five years but less than ten years 13,717,400,000 6,007,658,459
287,646,106,517 257,024,834,259
298,320,586,377 269,833,088,669
20 Consolidated other liabilities

Southeast Financial Services (Australia) Pty Ltd 787,383 1,566,828
32,106,699,928 26,046,455,982
32,102,455,720 26,044,632,850
21 Other liabilities
Provision for loans and advances/investments 21.1 13,283,300,001 10,069,290,980

Interest suspense account 21.2 5,995,927,271 4,402,732,281
Provision for taxation 21.3 5,030,480,782 5,163,120,617
Obligation under finance lease 21.4 1,291,340 3,768,470
Accrued expenses 14,467,280 8,600,057
Interest payable on borrowings 393,432,740 110,226,431
Accounts payable-Bangladesh Bank 276,010,148 129,843,978
Accounts payable-others 1,560,523,945 1,291,009,221
Provision for diminution in the market value of share 21.7 799,726,500 419,055,000
Other provisions 21.5.1 1,456,946,800 1,610,746,800
Unearned income 380,676,896 360,014,159
Branch adjustment 21.6 1,576,218,799 1,160,994,811
Withholding tax 995,501,554 1,002,360,911
Provision for audit fees 1,000,000 1,000,000
31,765,504,056 25,732,763,716
62
2018 2017
Note Taka Taka
21.1 Provision for loans and advances/investments
A. General
Balance as at 1 January 3,440,610,024 2,430,000,000
Add: Provision made during the year
On standard loans and advances/investments etc. (70,937,446) 982,841,369
On Special Mention Account (SMA) (48,272,578) 27,768,655
(119,210,024) 1,010,610,024
Less: Provision no longer required - -
Balance as at 31 December 3,321,400,000 3,440,610,024
B. Specific
Less: Fully provided debt write off during the year (2,044,946,488) (1,030,097,472)
Add: Recoveries of amounts previously written off 404,812,584 154,213,601
Add: Specific provision for the year 4,974,285,948 3,781,324,521
Less: Recoveries and provisions no longer required - -
Less: Interest waiver during the year (933,000) (5,044,000)
Net charge to Profit & Loss A/C 3,333,219,044 2,900,396,650
C. Total provision on loans and advances/investments (A+B) 13,283,300,001 10,069,290,980
21.2 Interest suspense account

Add: Amount transferred to "interest suspense" account during the year 4,018,996,469 2,210,542,837
8,421,728,750 5,760,066,669
Less: Amount of interest suspense recovered during the year 1,896,024,473 1,023,651,441
Amount written off during the year 493,566,266 256,697,755
Interest waiver during the year 36,210,740 76,985,192
2,425,801,479 1,357,334,388
21.3 Provision for taxation
Provision for current tax 21.3.1 3,885,486,907 3,806,832,079

Deferred tax liabilities 21.3.2 1,144,993,875 1,356,288,538
5,030,480,782 5,163,120,617
21.3.1 Provision for current tax
Provision
Settlement/adjustments for previous years (4,682,093,254) -
Provision made for the current year 21.3.1.1 2,200,000,000 2,830,000,000
(A) Balance as at 31 December 14,079,760,869 16,561,854,123
Less: Advance tax

Paid during the year 2,172,386,062 2,630,312,076
Settlement/adjustments for previous years (4,733,134,144) -
(B) Balance as at 31 December 10,194,273,962 12,755,022,044
(A-B) Net balance as at 31 December 3,885,486,907 3,806,832,079
21.3.1.1 Provision made for the current year
Provision made during the year 2,340,000,000 e 2,830,000,000

Less: Excess provision adjustment for prior years (140,000,000) -
2,200,000,000 2,830,000,000
Provision for current tax of Tk. 2,200,000,000 has been made @ 37.50% as prescribed by Finance Act 2018 of the accounting
profit made by the Bank after considering some of the add backs to income and disallowances of expenditure as per the Income
Tax Ordinance and Rules 1984 and in compliance of para 46 of IAS 12 "Income Tax ".
63
2018 2017
Note Taka Taka
21.3.2 Deferred tax liabilities
Deferred tax liabilities are attributable to the following:
Revaluation reserve of land 615,761,213 615,761,213

Revaluation reserve of buildings 125,911,051 125,911,051
Fixed assets- except land and revaluation reserve
of buildings 21.3.3.1 390,536,360 425,536,360
Revaluation reserve of HTM securities 21.3.3.2 7,662,748 5,611,947
Revaluation reserve of HFT securities 21.3.3.3 5,122,503 183,467,967
1,144,993,875 1,356,288,538
Deferred tax is calculated using the tax rates expected to apply in the periods in which the assets will be realised or the liabilities
settled, based on tax rates and laws enacted, by the balance sheet date. Following are the descriptions for each individual item of
the deferred tax that are recognised by the Bank as a temporary difference with expected time of realisation.
Revaluation reserve of land

As the land is not depreciable and as per local tax rules revaluation gain is not taxable. However, the tax office will charge taxes on
capital gain which is the same amount of revaluation gain whether recovered through use or sale. Hence a taxable temporary
difference arises against which the Bank recognises deferred tax liabilities. However, the outstanding amount of deferred tax will be
automatically released with the disposal of the assets.
Revaluation reserve of buildings
Buildings are depreciable assets. Its revalued carrying amount will be recovered through use and this will generate taxable income
which exceeds the depreciation that will be allowable for tax purposes in future periods. As a result taxable temporary difference
will arise.
Fixed assets- except land and revaluation reserve of buildings
Accounting depreciation is not tax allowable expenses. Rather, the tax office will allow tax depreciation as per 3rd Schedule of the
Income Tax Ordinance 1984. Hence a temporary difference arises due to the different depreciation rates and methodology
against which the Bank recognizes deferred tax. This is an ongoing item as there is a difference between the tax depreciation rate
and the accounting depreciation rate. However, the outstanding amount of deferred tax will be automatically released with the
expiry of the economic useful life of the assets.
Revaluation reserves of HTM and HFT securities
Deferred tax relating to unrealised interest on the revaluation of Held to Maturity (HTM) and Held for Trading (HFT) securities is
recognised directly in other reserves as a part of equity and is subsequently recognised in the profit and loss account on maturity
of the securities. The deferred tax recognised against this will be fully reversed at the maturity of all related securities.
2018 2017
Note Taka Taka
21.3.3 Movement of deferred tax liabilities

Provision made for deferred tax liabilities
Charged to profit and loss account (35,000,000) 150,000,000
Charged to revaluation reserve 2,050,800 130,212,148
(32,949,200) 280,212,148
1,323,339,339 1,671,726,791
Adjustment made during the year for revaluation reserve (178,345,464) (315,438,253)
64
21.3.3.1 Deferred tax on fixed assets- except land and revaluation reserve of buildings
2018 2017
Note Taka Taka
Balance as at 1 January 425,536,360 275,536,360

Charge to profit and loss account (35,000,000) 150,000,000
Balance as at 31 December 390,536,360 425,536,360
21.3.3.2 Deferred tax on revaluation reserve of HTM securities

Charge to revaluation reserves 2,050,800 1,551,424
Adjustment during the year - -
21.3.3.3 Deferred tax on revaluation reserve of HFT securities

Charge to revaluation reserves - 128,660,724
Adjustment during the year (178,345,464) (315,438,253)
21.4 Obligation under finance lease

Addition during the year - 1,707,240
3,768,470 11,973,183
Adjustment during the year (2,477,131) (8,204,713)
21.4.1 Aging analysis of liabilities under finance lease

Financial
Minimum charge for
lease future Principal
payment periods outstanding
Taka Taka Taka
2018
Payable within 1 year 599,772 176,462 423,310
Payable more than 1 year but less than 2 years 599,772 103,538 496,234
Payable more than 2 years but less than 5 years 399,848 28,053 371,795
1,599,392 308,053 1,291,340
2017
Payable within 1 year 2,918,069 440,938 2,477,131
Payable more than 1 year but less than 2 years 599,772 176,462 423,310
Payable more than 2 years but less than 5 years 999,620 131,591 868,029
4,517,461 748,991 3,768,470
65
2018 2017
Note Taka Taka
21.5 Other provisions charged to profit and loss
Provision for other assets 21.5.1 (A) 70,000,000 -

Provision for good borrowers 21.5.1 (B) - 20,000,000
Provision for off-balance sheet exposures 21.5.1 (C) (223,800,000) 285,500,000
(153,800,000) 305,500,000
21.5.1 Other Provisions
A) Provision for other assets

Addition during the year 70,000,000 -
233,735,000 163,735,000
B) Provision for good borrowers

Addition during the year - 20,000,000
22,011,800 43,000,000
Adjustment during the year - (20,988,200)
C) Provision for off-balance sheet exposures

Provision made during the year - 285,500,000
1,425,000,000 1,425,000,000
Adjustments made during the year (223,800,000) -
D) Total other provisions (A+B+C) 1,456,946,800 1,610,746,800
21.6 Branch adjustment (credit)
General accounts debit 1,451,973,000 2,837,208,189

General accounts credit 3,028,191,799 3,998,203,000
1,576,218,799 1,160,994,811
Branch adjustment account represents outstanding interbranch and head office transactions (net) originated but yet
to be responded at balance sheet date. However, the un-respondent entries of 31 Dec 2018 are given below:
No. of unrespondent entries Unrespondent entries (Taka)

Debit Credit Debit Credit
Upto 3 months 540 1,275 1,451,973,000 3,028,191,799

Over 3 months but within 6 months - - - -
Over 6 months but within 1 year - - - -
Over 1 year but within 5 years - - - -
540 1,275 1,451,973,000 3,028,191,799
21.7 Consolidated provision for diminution in value of investments
Southeast Bank Limited 413,060,983 (256,602,166)

Southeast Bank Capital Services Limited - 39,388,168
413,060,983 (217,213,998)
21.7.1 Provision for diminution in value of investments

Adjustments made for loss of sales of shares during the year (32,389,483) (230,048,458)
Provision made during the year (Charge to the profit and loss) 413,060,983 (256,602,166)
66
2018 2017
Note Taka Taka
22 Share Capital
22.1 Authorised
1,500,000,000 Ordinary shares of Tk 10 each 15,000,000,000 15,000,000,000
22.2 Issued, subscribed and paid up
378,164,970 ordinary shares of Tk 10 each issued for cash 3,781,649,700 3,781,649,700
676,327,732 ordinary shares of Tk 10 each issued as bonus shares 6,763,277,320 5,387,852,060

1,054,492,702 10,544,927,020 9,169,501,760
22.3 Reconciliation of number of shares

Issue of bonus shares 137,542,526 -
Stock split (1:10) - -
Balance as at 31 December 1,054,492,702 916,950,176
22.3 Dividends
The following dividends were declared and paid by the Bank for the year ended 31 December.
1.5 Taka (Stock Dividend) per ordinary share for 2017 and 2.00 Taka per
(Cash dividend) ordinary share for 2016 1,375,425,259 1,833,900,352
After the end of the reporting period, the following dividends were proposed by the directors. The dividends have not
been provided for and no tax consequences.
1.00 Taka (Stock dividend) per ordinary share for 2018 and 1.5 Taka
(Stock dividend) per ordinary share for 2017 1,054,492,702 1,375,425,259
22.4 Share capital at a glance from inception
Number of Capital amount Cumulative

Year Particulars
shares (Taka) (Taka)
1995 Opening / Sponsors Capital 1,000,000 100,000,000 100,000,000
1996 None - - 100,000,000
1997 25% Stock Dividend 250,000 25,000,000 125,000,000
1998 20% Stock Dividend 250,000 25,000,000 150,000,000
1999 Initial Public Offer (IPO) 1,500,000 150,000,000 300,000,000
2000 10% Stock Dividend 300,000 30,000,000 330,000,000
2001 10% Stock Dividend 330,000 33,000,000 363,000,000
2002 10% Stock Dividend 363,000 36,300,000 399,300,000
Right Issue @ 1:2 1,650,000 165,000,000 564,300,000
2003
20% Stock Dividend 1,128,600 112,860,000 677,160,000
2004 30% Stock Dividend 2,031,480 203,148,000 880,308,000
2005 20% Stock Dividend 1,760,616 176,061,600 1,056,369,600
Right Issue @1:1 10,563,696 1,056,369,600 2,112,739,200
2006
8% Stock Dividend 1,690,191 169,019,100 2,281,758,300
2007 25% Stock Dividend 5,704,395 570,439,500 2,852,197,800
2008 20% Stock Dividend 5,704,395 570,439,500 3,422,637,300
2009 35% Stock Dividend 11,979,230 1,197,923,000 4,620,560,300
Right Issue @1:2 23,102,801 2,310,280,100 6,930,840,400
2010
20% Stock Dividend 13,861,680 1,386,168,000 8,317,008,400
Stock split (1:10) 748,530,756 - 8,317,008,400
2011
5% Stock Dividend 41,585,042 415,850,420 8,732,858,820
2012 None - - 8,732,858,820
2013 5% Stock Dividend 43,664,294 436,642,940 9,169,501,760
2014 None - - 9,169,501,760
2015 None - - 9,169,501,760
2016 None - - 9,169,501,760
2017 15% Stock Dividend 137,542,526 1,375,425,259 10,544,927,020
67
22.5 Classification of shareholders by holding
Number of holders % of total holding
2018 2017 2018 2017
Less than 500 shares 9,048 10,398 0.15 0.21
501 to 5,000 shares 17,794 19,181 3.14 3.83
5,001 to 10,000 shares 2,984 2,982 1.99 2.38
10,001 to 20,000 shares 1,903 1,641 2.52 2.55
20,001 to 30,000 shares 646 540 1.50 1.45
30,001 to 40,000 shares 328 241 1.07 0.92
40,001 to 50,000 shares 173 197 0.75 1.00
50,001 to 1,00,000 shares 421 367 2.77 2.97
1,00,001 to 10,00,000 shares 419 370 11.57 12.33
Over 10,00,000 shares 135 121 74.54 72.36
33,851 36,038 100.00 100.00
22.6 Initial public offer (IPO)
Out of the total issued, subscribed and fully paid up capital of the bank 1,500,000 (after stock split: 15,000,000)
ordinary shares of Tk 100 (after stock split: Tk. 10) each amounting to Tk 150,000,000 was raised through public
offering on shares in 1999.
22.7 Name of the Directors and their shareholdings in the year 2018
Sl. As at 1 January As at 31
Name of the directors Status
no. 2018 December 2018
1 Mr. Alamgir Kabir, FCA Chairman 19,944,672 23,688,872
2 Mrs. Duluma Ahmed Vice Chairperson 19,082,742 21,945,153
3 Mr. M. A. Kashem Director 20,307,060 23,353,119
4 Mr. Azim Uddin Ahmed Director 25,490,735 29,314,345
5 Mrs. Jusna Ara Kashem Director 18,339,525 21,090,453
6 Mr. Md. Akikur Rahman Director 18,443,731 21,410,290
7 Mrs. Rehana Rahman Director 18,844,145 21,670,766
8 Mrs. Sirat Monira Director 120,547 138,629
9 Mr. Syed Sajedul Karim Independent Director - -
10 Dr. Quazi Mesbahuddin Ahmed Independent Director - -
11 Mr. M. Kamal Hossain Managing Director - -
140,573,157 162,611,627
22.8 Capital to Risk weighted Asset Ratio (CRAR) of the Bank
The calculation of CRAR has been done as per BRPD Circular no. 07 dated 31 March 2014 and the Basel-III
guideline December 2014 vide BRPD Circular no. 18 dated 21 December 2014.
2018 2017
Note Taka Taka
Common equity Tier-1 capital (Going Concern Capital)
Paid up capital 10,544,927,020 9,169,501,760
Share premium - -
Other reserve 25 247,650,000 247,650,000
23,690,537,177 21,227,504,958
Add: Additional Tier 1 capital - -
Less: Regulatory adjustments 124,419,075 148,251,669
A) Total common equity Tier 1 capital 23,566,118,102 21,079,253,289
68
2018 2017
Note Taka Taka
Tier 2 Capital (Gone -Concern Capital)
General provision maintained against unclassified loan/investments 3,321,400,000 3,440,610,024
General provision on off-balance sheet items 1,201,200,000 1,425,000,000
Asset revaluation reserve 2,101,404,750 2,101,404,750
Revaluation reserve of Government securities 234,027,984 234,027,984
17,058,032,734 14,001,042,758
Less: Regulatory adjustments 1,868,346,187 1,401,259,640
Total Tier 2 capital 15,189,686,547 12,599,783,118
B) Total capital 38,755,804,649 33,679,036,407
C) Risk Weighted Assets (RWA)
Credit Risk
On-balance sheet 231,060,110,522 226,671,124,618
Off-balance sheet 47,825,004,244 50,312,116,068
278,885,114,766 276,983,240,686
Market risk 9,825,644,530 12,834,521,890
Operational risk 22,128,575,152 20,020,349,602
Total RWA 310,839,334,448 309,838,112,178
D) Required common equity Tier 1 Capital 13,987,770,050 13,942,715,048
Required Tier 1 Capital 6% (2017: 6%) of RWA) 18,650,360,067 18,590,286,731
E) Required total capital 11.875% (2017: 11.25%) of RWA 36,912,170,966 34,856,787,620
F) Surplus common equity Tier 1 Capital(A-D) 9,578,348,052 7,136,538,241
G) Surplus total capital (B-E) 1,843,633,684 (1,177,751,213)
Capital to risk-weighted assets ratio:
On common equity Tier 1 capital against standard of

minimum 4.5% 7.58% 6.80%
On Tier 1 capital - against standard of minimum 6% 7.58% 6.80%
On total capital - against standard of minimum 11.875% (2017:11.25%) 12.47% 10.87%
22.9 Leverage Ratio of the Bank
A) Tier 1 capital considering all regulatory adjustments 23,566,118,102 21,079,253,289
B) On-balance sheet exposure 372,342,421,027 333,842,502,292

C) Off-balance sheet exposure 85,766,147,287 74,492,727,609
D) Deduction from on and off balance sheet exposure
/Regulatory adjustment 124,419,075 148,251,670
E) Total exposure (B+C-D) 457,984,149,240 408,186,978,231
Leverage ratio (A/E) 5.15% 5.16%

Liquidity coverage ratio 123.37% 102.81%
Net stable funding ratio 115.18% 115.55%
69
2018 2017
Note Taka Taka
22.10 Capital to Risk weighted Asset Ratio (CRAR) of the
Group
Common Equity Tier 1 Capital

Paid up capital 10,544,927,020 9,169,501,760
Share premium - -
Other reserve 25 247,650,000 247,650,000
Non- controlling interest 29 10,070,512 10,050,803
23,794,844,933 21,313,601,275
Add: Additional Tier 1 capital - -
Less: Regulatory adjustments 124,419,075 148,251,669
A) Total common equity Tier 1 capital 23,670,425,858 21,165,349,606
Tier 2 capital (Gone- Concern Capital)

General provision maintained against unclassified
loan/investments 3,321,400,000 3,440,610,024
General provision on off-balance sheet items 1,201,200,000 1,425,000,000
Asset revaluation reserve 2,101,404,750 2,101,404,750
Revaluation reserve of Government securities 234,027,984 234,027,984
17,058,032,734 14,001,042,758
Less: Regulatory adjustments 1,868,346,187 1,401,259,640
Total Tier 2 capital 15,189,686,547 12,599,783,118
B) Total capital 38,860,112,405 33,765,132,724
C) Risk weighted assets (RWA)
Credit risk
On-balance sheet 227,901,721,877 223,592,214,199
Off-balance sheet 47,825,004,244 50,312,116,068
275,726,726,121 273,904,330,267
Market risk 15,778,852,594 17,439,506,326
Operational risk 22,455,343,921 20,213,502,052
Total RWA 313,960,922,637 311,557,338,645
D) Required common equity Tier 1 capital 14,128,241,519 14,020,080,239
Required Tier 1 capital 6% (2017: 6%) of RWA 18,837,655,358 18,693,440,319
E) Required total capital 11.875% (2017: 11.25%) of RWA 37,282,859,563 35,050,200,598
F) Surplus common equity Tier 1 capital (A-D) 9,542,184,339 7,145,269,367
G) Surplus total capital (B-E) 1,577,252,842 (1,285,067,874)
Capital to risk- weighted asset ratio:

On common equity Tier 1 capital - against standard of minimum 4.5% 7.54% 6.79%
On Tier 1 capital - against standard of minimum 6% 7.54% 6.79%
On total capital - against standard of minimum 11.875% (2017:11.25%) 12.38% 10.84%
70
2018 2017
Note Taka Taka
22.11 Leverage ratio of the Group
A) Tier 1 capital considering all regulatory adjustments 23,670,425,858 21,165,349,606
B) On-balance sheet exposure 372,823,178,880 334,210,339,400

C) Off-balance sheet exposure 85,766,147,287 74,492,727,609
D) Deduction from on and off balance sheet exposure
/Regulatory adjustment 124,419,075 148,251,669
E) Total exposure (B+C-D) 458,464,907,092 408,554,815,340
Leverage ratio (A/E) 5.16% 5.18%

Liquidity coverage ratio 123.37% 102.81%
Net stable funding ratio 115.18% 115.55%
23 Statutory reserve

Addition during the year 924,153,565 -
24 Revaluation reserve
Revaluation reserve of land and buildings:
Addition during the year - -
4,944,481,764 4,944,481,764
Deferred tax liabilities (741,672,265) (741,672,265)
Revaluation reserve on HTM securities:

Addition during the year 5,468,801 3,878,561
19,118,815 13,650,014
19,118,815 13,650,014
Revaluation reserve on HFT securities:

Addition during the year 1,143,283,843 476,312,385
1,650,143,297 1,401,926,128
Adjustment during the year (1,498,484,459) (895,066,673)
151,658,839 506,859,455
4,360,801,902 4,534,239,054
25 Other reserve
General reserve:
Addition during the year - -
71
2018 2017
Note Taka Taka
26 Foreign currency translation reserve

(Adjustments)/addition during the year 14,775,840 (10,306,481)
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of
foreign operations.
27 Consolidated retained earnings

Southeast Bank Capital Services Limited 276,328 (10,468,432)
Southeast Financial Services (UK) Ltd (16,615,563) (18,001,423)
Southeast Financial Services (Australia) Pty Ltd (17,893,249) (18,576,974)
Less: Elimination for impairment of investment in subsidiary 48,560,048 85,560,048
2,898,043,836 2,716,398,712
28 Retained earnings

Currency translation differences 7,264,394 17,226,310
Prior year adjustment - 166,906,342
2,647,617,592 3,355,956,847
Retained surplus for the year 1,531,614,259 1,118,296,703
4,179,231,851 4,474,253,550
Less:
Issue of bonus share 1,375,425,259 -
Cash dividend paid - 1,833,900,352
1,375,425,259 1,833,900,352
Retained earnings carried forward 2,803,806,592 2,640,353,198
29 Non-controlling interest
Paid up capital 5,500,000,000 5,500,000,000

Retained earnings 276,835 (10,487,634)
Total net assets 5,500,276,835 5,489,512,366
Non-controlling interest 0.183091% (2017:0.183091%) of net assets 10,070,512 10,050,803
Non-controlling interest arises only for Southeast Bank Capital Services Limited since all other subsidiaries are wholly
owned by Southeast Bank Limited.
30 Contingent liabilities
30.1 Acceptances and endorsements
Acceptance under Letters of Credit (LC) - other than back to back 44,423,696,274 39,997,385,993
Acceptance under Letters of Credit -back to back 19,430,066,710 17,141,146,992
63,853,762,984 57,138,532,985
72
2018 2017
Note Taka Taka
30.2 Letters of guarantee
Local 18,086,603,871 14,928,991,500
Foreign 1,111,389,170 995,971,664
19,197,993,041 15,924,963,164
30.2.1 Balance for which the Bank is contingently liable

in respect of guarantee issued favouring:
Directors or officers 4,783,000 4,783,000
Government - -
Banks and other financial institutions 46,205,078 42,916,540
Others 19,147,004,963 15,877,263,624
19,197,993,041 15,924,963,164
30.3 Irrevocable Letters of Credit (L/C)
Back to back L/C 16,060,837,527 16,719,794,155

Others 20,313,721,780 27,475,343,281
36,374,559,306 44,195,137,436
30.4 Bills for collection

Local 13,508,211,848 11,767,568,379
Foreign 11,156,714,966 10,899,018,477
24,664,926,813 22,666,586,856
30.5 Other contingent liabilities
Value of Bangladesh Sanchaypatra & others 1,413,684,000 1,744,473,000
31 Income statement
Income:
Interest, discount and similar income 28,874,960,097 22,838,457,502
Dividend income 130,239,122 194,053,603
Fees, commission and brokerage 2,210,370,584 2,016,554,343
Gains less losses arising from dealing securities (79,827,714) (282,508,062)
Gains less losses arising from investment securities 88,341,080 120,732,297
Gains less losses arising from dealing in foreign currencies 1,328,341,566 1,344,124,999
Other operating income 947,056,334 821,156,590
33,499,481,069 27,052,571,272
Expenses:
Interest, fees and commission 18,775,867,174 13,378,247,565
Administrative expenses 3,448,714,783 3,117,829,896
Other operating expenses 1,209,933,472 1,299,784,648
Depreciation on banking assets 329,860,908 317,580,081
23,764,376,338 18,113,442,190
Income over expenses 9,735,104,731 8,939,129,082
32 Consolidated interest income/profit on investments

Southeast Financial Services (UK) Ltd - -
Southeast Financial Services (Australia) Pty Ltd - 38
23,978,003,956 17,411,728,869
Less: Inter company balance eliminated 166,849 11,178,794
23,977,837,107 17,400,550,075
73
2018 2017
Note Taka Taka
33 Interest income/profit on investments
Interest on loans and advances (Conventional Banking):

Interest on loans and advances 21,875,787,034 16,097,860,717
Interest on placement with other banks and financial institutions 473,435,429 164,342,052
Interest on foreign currency balances 121,469,232 57,142,303
22,470,691,694 16,319,345,071
Profit on investment (Islamic Banking):

Profit on investments 1,480,929,380 1,049,413,515
Profit on placement with other banks 68,783 16,146,229
1,480,998,163 1,065,559,745
23,951,689,857 17,384,904,816
34 Consolidated interest paid/profit shared on deposits

and borrowings etc.

18,778,064,156 13,384,038,791
Less: Inter company balance eliminated 166,849 11,178,794
18,777,897,307 13,372,859,997
35 Interest paid/profit shared on deposits and borrowings etc.
Interest paid on deposits (Conventional Banking):

Interest on deposits 15,988,578,364 11,370,686,362
Interest on borrowings 1,487,780,085 1,049,743,814
Interest on repurchase agreement (repo) 2,415,850 14,011,606
Interest on refinance 4,940,677 4,618,683
Interest on foreign bank accounts 2,704,430 683,543
17,486,419,405 12,439,744,008
Profit shared on deposits (Islamic Banking):
Profit paid on deposits 1,206,982,422 856,271,639
Profit on refinance borrowings 82,465,347 82,231,918
1,289,447,769 938,503,557
18,775,867,174 13,378,247,565
36 Consolidated investment income

5,129,753,568 5,586,901,452
Less: Inter company balance eliminated - 16,253,055
5,129,753,568 5,570,648,397
37 Investment income
Interest income from Government securities 37.1 4,340,846,226 5,114,905,070

Capital gain on Government securities 37.2 1,094,874,269 694,421,153
Revaluation gain (loss) on Government securities 37.3 (1,174,701,983) (976,929,215)
Dividend on investment in shares 130,239,122 194,053,603
Gain on sale of investment in shares 88,341,080 120,732,297
Interest income from investment in bonds 582,424,014 338,647,616
5,062,022,727 5,485,830,524
74
2018 2017
Note Taka Taka
37.1 Interest income from Government securities
Interest on treasury bills 10,670,572 7,858,032

Interest on treasury bonds/T&T bonds 4,862,083,421 6,657,538,978
Interest on Bangladesh Bank bills 292,032 3,275,000
4,873,046,025 6,668,672,010
Interest expenses on treasury bills - (23,687)

Interest expenses on treasury bonds (532,199,800) (1,553,743,253)
(532,199,800) (1,553,766,940)
Net interest income from Government securities 4,340,846,226 5,114,905,070
37.2 Capital gain on Government securities
Capital gain on treasury bills 769,439 1,273,366

Capital gain on treasury bonds/T&T bonds 1,223,140,217 841,076,080
Capital gain on BB bills - 268,536
1,223,909,656 842,617,982
Capital loss on treasury bills (741,259) (671,113)

Capital loss on treasury bonds/T&T bonds (128,294,128) (147,525,716)
(129,035,387) (148,196,829)
Net capital gain on Government securities 1,094,874,269 694,421,153
37.3 Revaluation gain (loss) on Government securities
Revaluation gain on treasury bills - -

Revaluation gain on treasury bonds 42,921,719 -
Revaluation gain on Bangladesh Bank bills - -
42,921,719 -
Revaluation loss on treasury bills (13,423,235) (227,635)

Revaluation loss on treasury bonds (1,204,193,310) (976,433,044)
Revaluation loss on Bangladesh Bank bills (7,157) (268,536)
(1,217,623,702) (976,929,215)
Net revaluation gain (loss) on Government securities (1,174,701,983) (976,929,215)
38 Consolidated commission, exchange and brokerage

Southeast Bank Capital Services Limited 325,000 535,000
3,652,775,278 3,462,929,452
39 Commission, exchange and brokerage
Commission and brokerage 2,210,370,584 2,016,554,343

Exchange gain 39.1 1,328,341,566 1,344,124,999
3,538,712,150 3,360,679,342
39.1 Exchange gain
Exchange gain from revaluation/trade of foreign currency 1,292,788,635 1,294,364,761

Exchange gain from credit card 35,552,931 49,760,238
1,328,341,566 1,344,124,999
75
2018 2017
Note Taka Taka
40 Consolidated other operating income
Southeast Bank Limited 41 947,056,334 821,156,590
Southeast Financial Services (UK) Ltd 2,494,536 -
Southeast Exchange Company (South Africa) Pty Ltd - 162,609
983,721,805 876,049,385
979,447,885 871,775,465
41 Other operating income
Remittance fees 17,674 76,574
Service and incidental charges 99,288,754 123,578,606
Other fees - telephone and postage 58,491,405 56,000,865
Income from ATM services 43,787,777 32,846,965
Income from credit card 150,609,574 116,782,148
Income from retail banking 6,745,804 6,428,887
Other Fees - SWIFT and others 222,203,670 202,921,414
Gain on sale of fixed assets 41.1 142,832 -
Income from telecash 783,903 280,047
Miscellaneous income 364,984,941 282,241,084
947,056,334 821,156,590
41.1 Gain on sale of fixed assets

Cost:
Motor vehicles 16,685,000 -
Furniture and fixtures 4,401,630 -
Office appliances 99,369 -
ATM 50,500 -
Electrical appliances 8,088,362 -
House Electrical appliances 50,000 -
29,374,861 -
Accumulated depreciation:
Motor vehicles 15,927,016 -
Furniture and fixtures 2,433,336 -
Office appliances 91,000 -
ATM 35,279 -
Electrical appliances 7,230,843 -
House Electrical appliances 23,867 -
25,741,341 -
Written down value 3,633,520 -
Sale proceeds of the above fixed assets 3,776,352 -
Gain on sale of fixed assets 142,832 -
42 Consolidated salaries and allowances

2,026,521,807 1,880,629,864
43 Salaries and allowances
Basic salary 1,007,663,400 960,086,331
Allowances 597,803,225 566,671,872
Bonus 304,014,470 248,786,742
Provident fund 82,567,935 77,773,458
1,992,049,030 1,853,318,403
76
2018 2017
Note Taka Taka
44 Consolidated rent, taxes, insurance, electricity etc.
Southeast Bank Limited 45 1,015,140,607 917,262,049

1,035,840,309 935,898,273
1,031,566,389 931,624,353
45 Rent, taxes, insurance, electricity etc.
Rent, rates and taxes 662,528,071.77 617,882,593.00

Insurance 243,894,399 200,424,697
Electricity and lighting 108,718,136 98,954,759
1,015,140,607 917,262,049
46 Consolidated postage, stamp, telecommunication etc.

Southeast Financial Services (UK) Ltd 423,311 274,157
Southeast Exchange Company (South Africa) Pty Ltd 744,072 468,375
182,353,593 176,224,992
47 Postage, stamp, telecommunication etc.
Postage 57,125,786 54,317,413

Telephone /Telex 16,566,031 15,019,822
Electronic banking service 57,919 19,200
FC Charge (Nostro) 5,189,460 5,646,541
VSAT on-line 45,543,544 46,864,229
Reuters services 1,612,445 2,076,740
181,005,852 175,303,570
48 Consolidated stationery, printing, advertisements etc.

165,642,288 149,545,742
49 Stationery, printing, advertisements etc.
General and office stationery 78,530,832 63,769,627

Printing and security stationery 36,103,821 30,205,473
Publicity and advertisement 47,979,807 53,340,450
162,614,460 147,315,550
77
2018 2017
Note Taka Taka
50 Managing Director's salary and fees
Basic salary 4,020,000 3,928,757
House rent 1,740,000 1,534,657
House maintenance 900,000 866,408
Leave fare concession 1,200,000 1,262,904
Utility 720,000 689,375
Special allowance 420,000 440,575
Provident Fund 402,000 276,747
Bonus 670,000 1,038,000
10,072,000 10,037,423
51 Consolidated directors' fees
Southeast Bank Limited (Note 52) 52 2,718,099 3,575,203
Southeast Financial Services (UK) Limited - -
2,926,099 3,785,203
52 Directors' fees
Directors' fees 2,360,000 2,983,200
Directors' haltage and travelling 358,099 592,003
2,718,099 3,575,203
Each Director is paid TK. 8,000/ per meeting per attendance.

53 Consolidated auditors' fees
Southeast Bank Limited 1,000,000 1,345,000
1,847,371 1,906,893
54 Consolidated depreciation and repair
Depreciation:
390,732,319 376,228,982
Repair:
Southeast Financial Services (Australia) Pty Ltd - -
85,562,313 79,159,553
476,294,631 455,388,535
55 Depreciation and repair of bank's assets

A. Depreciation:
Buildings 57,106,336 59,510,469
Professional and reference books - -
Computer 34,543,455 31,604,261
ATM Booth 25,195,613 21,567,475
Motor vehicles 15,762,177 19,970,225
329,860,908 317,580,081
78
2018 2017
Note Taka Taka
B. Repair & spare parts:
Office and electrical appliances 33,513,286 29,183,762
Motor vehicles 4,720,176 5,228,293
Repair, maintenance and utilities 38,412,945 36,417,423
84,114,735 78,482,177
Total (C=A+B) 413,975,642 396,062,258
56 Consolidated other expenses
Adjustment for impairment loss of investment in subsidiary 37,000,000 -
1,280,397,900 1,259,769,572
57 Other expenses
Security and cleaning 199,122,374 170,526,070
Entertainment 90,775,896 130,624,782
Car expenses 213,717,936 207,867,443
Books and periodicals 1,083,090 2,455,921
Subscription 5,772,577 4,515,855
Donation including CSR 174,603,215 210,619,093
Travelling expenses 14,423,981 11,023,278
Finance charge on leased assets 139,653 422,389
Conveyance 14,699,059 13,533,813
Petrol,oil and lubricant 9,402,055 9,631,531
Training/seminar 5,636,562 8,290,347
Uniforms and apparels 3,975,797 4,351,683
Medical expenses 101,692 130,260
Gratuity and othres 295,090,057 263,890,692
Professional expenses 14,287,158 12,741,797
Expenses for CIB report 194,670 865,022
IT enabled services 46,529,061 33,545,578
Loss on sale of fixed assets 57.1 - 2,751,504
Expenses regarding credit card 43,029,219 46,219,184
Expenses regarding retail banking & agriculture 47,464,491 60,986,637
Expenses regarding call centre 2,540,476 2,786,845
Expenses relating to ATM services 49,332,614 21,287,699
Expenses regarding mobile banking services-Telecash 4,468,701 3,209,381
Adjustment for Impairment loss from investment in subsidiary (37,000,000) -
Others operating expenses 9,249,918 7,145,228
1,208,640,252 1,229,422,032
Figures of previous year have been rearranged in note no: 57 to conform the current year's presentation
57.1 Loss on sale of fixed assets

Cost:
Land - 4,123,994
Building - 1,767,426
Furniture and fixtures - 7,407,519
Office appliances - 78,825
ATM - 1,188,175
Electrical appliances - 10,644,578
House Elec. Appliance - 350,000
- 25,560,517
Accumulated depreciation:
Building - 375,233
Furniture and fixtures - 4,778,297
Office appliances - 74,855
ATM - 498,488
Electrical appliances - 9,025,362
House Elec. Appliance - 213,807
- 14,966,042
Written down value - 10,594,475
Sale proceeds of the above fixed assets - 7,842,971
Loss on sale of fixed assets - (2,751,504)
79
2018 2017
Note Taka Taka
58 Consolidated provision for taxation
Current tax:
2,230,449,370 2,863,298,938
Deferred tax:
Southeast Bank Limited 59 (35,000,000) 150,000,000
(35,000,000) 150,150,332
2,195,449,370 3,013,449,270
59 Provision for taxation

Current tax 2,200,000,000 2,830,000,000
Deferred tax (35,000,000) 150,000,000
2,165,000,000 2,980,000,000
59.1 Reconciliation of effective tax rate (Bank)

2018 % Taka
Profit before taxation as per profit and loss account 4,620,767,824
Income tax as per applicable tax rate 37.50% 1,732,787,934

Factors affecting the tax charge for current year
Non deductible expenses 51.10% 2,361,365,304
Deductible expenses -27.79% (1,284,072,243)
Tax exempt income -8.89% (410,577,851)
Tax savings from reduced tax rates for dividend -0.49% (22,791,846)
Tax savings for capital loss -0.72% (33,127,905)
Change in taxable temporary difference -0.76% (35,000,000)
Excess provision -3.11% (143,583,393)
Total income tax expenses 46.85% 2,165,000,000
2017 % Taka
Profit before taxation as per profit and loss account 4,098,296,703

Income tax as per applicable tax rate 40.00% 1,639,318,681
Factors affecting the tax charge for current year
Non deductible expenses 54.48% 2,232,556,040
Deductible expenses -16.81% (689,075,849)
Tax exempt income -6.78% (277,768,462)
Tax savings from reduced tax rates for dividend -0.95% (38,810,721)
Tax savings from reduced tax rates for capital gain -0.88% (36,219,689)
Change in taxable temporary difference 3.66% 150,000,000
Total income tax expenses 72.71% 2,980,000,000
80
2018 2017
Note Taka Taka
60 Consolidated cash received from other operating activities

Southeast Financial Services (UK) Ltd 2,494,536 -
979,305,053 871,775,465
61 Cash received from other operating activities

Other Fees-Telephone and Postage 58,491,405 56,000,865
Income from ATM services 43,787,777 32,846,965
Income from Credit Card 150,609,574 116,782,148
Income from Retail Banking 6,745,804 6,428,887
Income from Telecash 783,903 280,047
946,913,502 821,156,590
62 Consolidated payments for other operating activities

2,479,049,698 2,345,344,075
63 Payments for other operating activities
Rent rates and taxes 997,505,888 835,276,384

Postage 181,005,852 175,303,570
Directors' fees 2,718,099 3,575,203
Repairs 84,114,735 78,482,177
Legal expense 1,293,220 1,553,137
Audit fees 1,000,000 1,345,000
Other expenses 1,171,640,252 1,214,685,933
2,439,278,046 2,310,221,404
64 Consolidated earnings per share
Net profit after tax for the year ended 31 December (Taka) 2,473,189,135 1,168,581,138
Number of ordinary shares outstanding 1,054,492,702 1,054,492,702
Earnings per share (EPS) (Taka) 2.35 1.11
65 Earnings per share
Net profit after tax for the year ended 31 December (Taka) 2,455,767,824 1,118,296,703
Number of ordinary shares outstanding 1,054,492,702 1,054,492,702
Earnings per share (EPS) (Taka) 2.33 1.06
*Earnings per share has been calculated in accordance with IAS 33: Earnings Per Share (EPS) . Previous year's figures
have been adjusted for the issue of bonus shares during the year.
81
2018 2017
Note Taka Taka
66 Consolidated net assets value (NAV) per share
Net Asset Value (NAV) 28,116,657,718 25,823,646,761

Number of ordinary shares outstanding 1,054,492,702 916,950,176
Net Asset Value (NAV) per share 26.66 28.16
67 Net Assets Value (NAV) per share
Net Asset Value (NAV) 28,051,339,079 25,761,744,012

Net Asset Value (NAV) per share 26.60 28.10
68 Consolidated net operating cash flow per share (NOCFPS)
Net Operating Cash Flow 3,549,513,918 1,715,013,174

Net Operating Cash Flow per share (NOCFPS) 3.37 1.87
69 Net Operating Cash Flow per share (NOCFPS)
Net Operating Cash Flow 3,507,440,847 1,333,459,609

Net Operating Cash Flow per share (NOCFPS) 3.33 1.45
82
70 Group entities
Ownership interest %
Name of subsidiary Country of incorporation 2018 2017
Southeast Bank Capital Services Limited Bangladesh 99.816909 99.816909
Southeast Financial Services (UK) Ltd England and Wales 100 100
Southeast Financial Services (Australia) Pty Ltd Australia 100 100
Southeast Exchange Company (South Africa) Pty Ltd South Africa 100 100
71 General
71.1 Audit Committee
The Audit Committee is an important functional Committee of the Board of Directors of the Bank. It is assigned with oversight of financial
reporting, disclosure, regulatory compliance and disciplined banking operation complying with the rules and norms of banking
Feature and composition
The Audit Committee was last re-constituted by the Board of Directors in its 548th meeting held on July 25, 2018 in accordance with the
Corporate Governance Code issued by BSEC on June 03, 2018 and Bangladesh Bank’s BRPD circular no. 11, dated October 27, 2013.
The composition of the present member of the Audit Committee in 2018 are given below:
Sl.
Name Position Meetings held Attendance Remarks
no.
1 Mr. Syed Sajedul Karim Chairman 5 2
(Independent Director)
2 Mrs. Duluma Ahmed Member 5 3
3 Mrs. Jusna Ara Kashem Member 5 5 The Members who could not attend any
meeting were granted leave of absence.
4 Mrs. Rehana Rahman Member 5 5
5 Dr. Quazi Mesbahuddin Member 5 5

Ahmed (Independent
Director)
Note: Mr. Syed Sajedul Karim was elected on the 23rd AGM, i.e. 30 June, 2018.
On invitation, Senior Executives of the Bank including the Managing Director, Chief Financial Officer (CFO), Head of Internal Control and
Compliance and Head of Bank’s Risk Management Division attended the meetings to meet instant queries of the Audit Committee to
make its decisions fact-based.
The academic qualifications of the members of the Audit Committee are given below:
Sl.
Name Status with the committee Educational Qualification
no.
Mr. Syed Sajedul Karim Independent Director Chairman M.A., B.A. (Hons)
1
2 Mrs. Duluma Ahmed Director Member Graduate
3 Mrs. Jusna Ara Kashem Director Member H.S.C
4 Mrs. Rehana Rahman Director Member Graduate
5 Dr. Quazi Mesbahuddin Director Member B.A. (Hons), M.A., MEC, MSC., Phd in
Ahmed Economics
83
Terms of reference of the Audit Committee
i) Board shall appoint non-executive directors of the Bank as members of the Audit Committee excepting Chairman of the Board
ii) Mr. Syed Sajedul Karim, in his capacity as the Independent Director, shall be the Chairman of the Audit Committee
iii) Presence of 03 (three) members shall form a quorum.
iv) The quorum of the Audit Committee meeting shall not constitute without at least 1 (one) Independent Director.
v) The tenure of office of the Audit Committee shall be for 3 years.
vi) The Company Secretary shall act as Secretary to the Audit Committee.
vii) The terms of reference of the Audit Committee shall also be as specified in the BRPD Circular No.11 dated October 27, 2013 of
Bangladesh Bank and provisions contained in Notification No.BSEC/CMRRCD/2006-158/207/Admin/80 of Bangladesh Securities
and Exchange Commission (BSEC), dated 03 June, 2018.
viii) Mr. Zakir Ahmed Khan, Advisor of the Bank, shall remain present in every meeting of the Audit Committee as far as possible and
shall give his advice and suggestions for improvement of Bank’s operations and strict compliance with rules of both the Bank and its
regulators.
ix) Chairman of the Audit Committee shall remain present in the Annual General Meeting (AGM).
Charter of the Audit Committee
The Audit Committee is constituted by the Board of Directors for the primary purpose of assisting the Board in:
- Overseeing the integrity of the company’s financial statement.

- Overseeing the improvement of corporate governance standard of the company.
- Overseeing the Company’s system of disclosure, internal controls and procedure.
- Overseeing Bank’s internal control over financial reporting.
- Overseeing Bank’s compliance with ethical standards adopted by the company.
- Making reports and recommendations to the Board.
Roles and responsibilities
The role of Audit Committee is to assist the Board in discharging its duties and responsibilities for financial reporting, effective monitoring,
corporate governance, internal control, green banking and environmental & climate change risks. The added roles of the Audit Committee
include, but not limited to, the following:
Overseeing the financial reporting process.

i)
ii) Monitoring choice of accounting policies and principles.
iii) Monitoring Internal Audit and Compliance process including approval of Internal Audit and compliance plan.
iv) Reviewing the Internal Audit and Compliance Report.
v) Overseeing hiring and performance of external auditors.
vi) Reviewing the Annual Financial Statements before submission to the Board for approval or adoption.
vii) Reviewing the quarterly and half-yearly Financial Statements before submission to the Board for approval.
viii) Review the financial statements, in particular the investments made by the subsidiary company.
ix) Reviewing the adequacy of internal audit functions.
x) Reviewing the Management’s Discussion and Analysis before disclosing in the Annual Report
xi) Overseeing the determination of audit fees based on scope and magnitude, level of expertise deployed and time required for
xii) Reviewing statement of significant party transactions submitted by the management.
xiii) Reviewing Management Letters/ Letter of Internal Control Weakness issued by Statutory Auditors.
xiv) Reviewing the existing Risk Management Policy and procedures to improve the quality of Bank’s assets portfolio.
xv) Reviewing fund raising through Repeat Public Offering/ Rights Issue and its use and application.
xvi) Monitoring internal control process.
xvii) Maintaining oversight on regulatory compliance, ethics and whistleblower hotlines
xviii) Reviewing Audit Committee’s own terms of reference.
xix) Reviewing the compliance status of the Minutes of the Audit Committee Meeting.
84
71.2 Risk Management Committee of the Board of Directors of the Bank
The Bank Company Act-1991 (Amended up to 2018), inter alia, provided for constitution of a Risk Management Committee of the Board
of Directors of every Bank. The committee will scrutinize whether appropriate risk management measures are being put in place and
applied and whether adequate capital and provision is being maintained against different risks.
Feature and composition
The Risk Management Committee was reconstituted by the Board of Directors in its 548th meeting held on July 25, 2018 in accordance
with the BRPD circular no. 11, dated October 27, 2013 issued by Bangladesh Bank. The composition of the Risk Management Committee
in 2018 is given below:
Sl. Members Position Attendance

Meetings held Remarks
no.
1 Mr. Alamgir Kabir, FCA Chairman 4 4 The Members who could not attend any
2 Mr. M. A. Kashem Member 4 2 meeting showing genuine ground were
3 Mr. Azim Uddin Ahmed Member 4 3 granted leave of absence
4 Mr. Syed Sajedul Karim Member 4 2
(Independent Director)
Note: Mr. Syed Sajedul Karim was elected on the 23rd AGM, i.e. 30 June, 2018.
Structure of the Risk Management Committee (RMC)
1 The Chairman of the Board of Directors of the Bank shall be the Chairman of the Risk Management Committee.
2 Presence of 3 (three) members in a meeting of the Committee shall form quorum.
3 The Company Secretary of the Bank shall act as the Secretary to the Risk Management Committee of the Board.
Functions of the Risk Management Committee
The broad functional areas of the Risk Management Committee are the following:
a Formulating and reviewing risk management policies and strategies for sound risk management
b Monitoring implementation of risk management policies and process to ensure effective prevention and control measures
c Ensuring construction of adequate organizational structure for managing risks within the Bank
d Supervising the activities of Executive Risk Management Committee (ERMC)
e Ensuring compliance of Bangladesh Bank instructions regarding implementation of core risk management
f Ensuring formulation and review of risk appetite, limits and recommending these to Board of Directors for their review and approval
g Approving adequate record keeping and reporting system and ensuring its proper use
h Holding at least four meetings in a year and more if deemed necessary
i Submitting proposal, suggestions & summary of BRMC meetings to Board of Directors at least on quarterly basis
j Complying with instructions issued from time to time by the regulatory body
k Analyzing all existing and probable risk issues in the meeting and taking appropriate decisions for risk mitigation
l Ensuring sufficient and efficient staff resources for RMD
m Establishing standards of ethics and integrity for staff and enforcing these standards
85
71.3 Related party/(ies)
Particulars of Directors of the Bank as at 31 December:

Sl. % of shares % of shares
Name of persons Designation Present address
No. as at 31 Dec 2018 as at 31 Dec 2017
1 Mr. Alamgir Kabir, FCA Chairman 226, Dilu Road, New Eskaton, 2.25% 2.18%
Dhaka
2 Mrs. Duluma Ahmed Vice Chairperson Plot No.51, Road No.09, 2.08% 2.08%
Block-F,Banani, Dhaka
3 Mr. M. A. Kashem Director 73/C, Gulshan Avenue, 2.21% 2.21%
Dhaka-1212
4 Mr. Azim Uddin Ahmed Director Plot No.51, Road No.09, 2.78% 2.78%
Block-F,Banani, Dhaka
5 Mrs. Jusna Ara Kashem Director 73/C, Gulshan Avenue, 2.00% 2.00%
Dhaka-1212
6 Mr. Md. Akikur Rahman Director Sonarpara, 2.03% 2.01%
Nobarun-227, Sylhet
7 Mrs. Rehana Rahman Director House No.10, Road No.68, 2.06% 2.06%
Gulshan, Dhaka
8 Mrs. Sirat Monira Director 226, Dilu Road (Ground 0.01% 0.01%
Floor),New Eskaton, Dhaka
9 Mr. Syed Sajedul Karim Independent Director B/3, Summer Holiday, House No.
8, Road No. 121, Gulshan-1, - -
Dhaka-1212.
10 Dr. Quazi Mesbahuddin Independent Director Flat No.C/3, House No.01, Road
Ahmed No.36, Gulshan, - -
Dhaka-1212
11 Mr. M. Kamal Hossain Managing Director Southeast Bank Limited, Head
Office, 52-53 Dilkusha C/A, Dhaka- - -
1000
*As per SEC notification no-SEC/CMRRCD/2009-193/119/Admin/34, dated: 22/11/2011; "Each director other than independent
director(s)/ nominated director(s) of any listed company shall hold minimum 2% (two percent) shares of the paid-up capital. Otherwise
there shall be a casual vacancy of director". But Mrs. Sirat Monira holds 0.01% of total outstanding share who became Director from B
Group i.e. public shareholders.
71.3.1 Related party transactions
During the year 2018, the Bank concluded business deals with the following organizations in which the directors had interest:
Transaction value for the year Balance outstanding as at 31

Name of ended 31 December December
Relationship Nature of transaction
Organization 2018 2017 2018 2017
Taka Taka Taka Taka
Asia Insurance Common
Insurance coverage 138,208,868 81,094,810
Ltd. Director
Southeast Bank Subsidiary Share capital - 5,489,930,000 5,489,930,000
Capital Services company Interest and loan - 11,178,794
Li it d
Southeast Subsidiary Share capital - - 38,493,247 38,493,247
Financial company
Services (UK)
Ltd
Financial company
Services
(Australia) Pty
Ltd
Exchange company
Company
(South Africa)
Pty Ltd
86
71.3.2 Loans and advances to directors and their related concern
Name of party Name of the Related by Nature of Amount in Status

director transaction Taka
Monorom Mr. Azim Director Bank Guarantee
Traders Uddin Ahmed
4,783,000 Regular
Mrs. Duluma
Ahmed
Mrs. Duluma Mrs. Duluma Vice Chairperson Credit Card 85,508.95 Regular
Ahmed Ahmed
Mr. Azim Uddin Mr. Azim Director Credit Card 19,120.89 Regular
Ahmed Uddin Ahmed
Ms. Sultana Mr. M. A. Directors’ daughter Credit Card 2,788.64 Regular
Kashem Kashem
Ms. Farzana Mr. Azim Directors’ daughter Credit Card 411,869.40 Regular
Azim Uddin Ahmed
Mr. Mamun Mr. Azim Directors’ son Credit Card 6,771.59 Regular
Azim Uddin Ahmed
The Bank complies with the requirements of the section 26 (c) of the Banking Companies Act 1991 (amended upto 2018) in connection
to the transactions executed with persons related to the Banks.
71.4 Events after the reporting period
The Board of Directors in its 570th meeting held on 30 April 2019 has recommended a stock dividend @10% subject to the approval of
the shareholders at the next Annual General Meeting.
71.5 Number of employees
The number of employees engaged for the whole year or part thereof in 2018 who received a total yearly remuneration of Tk 36,000 or
above were 2797. The total number of employees were 2,704 in 2017.
71.6 Share trading
The Bank started trading its ordinary shares in Dhaka Stock Exchange (DSE) and Chittagong Stock Exchange (CSE) through CDBL from
16 May 2004. The closing market price of the share as on 31 December 2018 was Tk.15.60 (2017: Tk.22.20) for each Tk.10 per value of
share at DSE and Tk 15.70 (2017: Tk.22.20) for each Tk.10 per value of share at CSE.
71.7 Pattern of Shareholding
Breakup of shareholding pattern as per clause 1.5 (xxi) of Securities and Exchange Commission notification No.SEC/CMRRCD/2006-
158/134/Admin/44 dated 07 August 2012 issued under Section 2CC of the Securities and Exchange Ordinance, 1969, is as follows:
a) Parent/Subsidiary/Associated companies and other related parties (name wise details):
Sl. no. Name of the Company Shareholding Structure

1 Southeast Bank Capital Services Limited 99.816909% owned by Southeast Bank Limited
2 Southeast Bank Financial Services (UK) Ltd 100% owned by Southeast Bank Limited
3 Southeast Financial Services (Australia) Pty Ltd 100% owned by Southeast Bank Limited
4 Southeast Exchange Company (South Africa) Pty Ltd 100% owned by Southeast Bank Limited
71.8 Highlights on the overall activities of the Bank
Highlights on the overall activities of the Bank have been furnished in Annexure-A.
87
Annexure-A
Highlights on the overall activities

Sl. no. Particulars 2018 2017

1 Paid-up capital Taka 10,544,927,020 9,169,501,760
2 Total capital Taka 38,755,804,649 33,679,036,407
3 Capital surplus Taka 1,843,633,684 (1,177,751,213)
4 Total assets Taka 381,094,921,027 338,909,245,125
5 Total deposits Taka 298,320,586,377 269,833,088,669
6 Total loans and advances/investments Taka 265,204,210,559 231,850,999,929
7 Total contingent liabilities and commitments Taka 145,504,926,144 142,496,794,641
8 Credit deposit ratio 81.55% 85.92%
Percentage of classified loans/investments against
9 5.87% 5.99%
total loans and advances/investments
10 Profit after tax and provision Taka 2,455,767,824 1,118,296,703
11 Amount of classified loans/investments Taka 15,558,851,040 13,878,533,441
12 Provisions kept against classified loans/investments Taka 9,961,900,000 6,628,680,956
Provision surplus/(deficit) against classified
13 Taka 4,043,815,452 2,802,303,797
loans/investments
14 Cost of fund 7.81% 6.80%
15 Interest earning assets Taka 329,182,199,588 288,682,338,956
16 Non-interest earning assets Taka 51,912,721,439 50,226,906,169
17 Return on investment (ROI) 0.74% 0.38%
18 Return on assets (ROA) [PAT/ Average assets] 0.68% 0.35%
19 Income from investment Taka 5,062,022,727 5,485,830,524
20 Capital adequacy 12.47% 10.87%
21 Dividends
a) Stock dividends 10% 15%
b) Cash dividends -
22 Earnings per share Taka 2.33 1.06
23 Net income per share Taka 2.33 1.06
24 Price earning ratio Times 6.72 17.68
88
Annexure-B

Consolidated Liquidity Statement
(Assets and liabilities maturity analysis)
Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total
Particulars
Assets:
Cash in hand 3,598,852,097 3,598,852,097
Balance with other banks and financial institutions 6,028,034,039 2,373,000,000 200,000,000 15,749,975,574 24,351,009,613
Money at call and on short notice 6,897,100,000 6,897,100,000
Investments 498,955,791 1,607,800,000 8,230,800,000 30,097,800,000 25,174,196,642 65,609,552,433
Loans and advances/investments 35,920,100,000 42,398,300,000 93,389,800,000 55,815,500,000 40,147,927,805 267,671,627,805
Fixed assets including premises, furniture and fixtures 1,522,727,974 7,814,567,187 9,337,295,160
Other assets 1,585,574,838 496,833,359 49,531,540 1,973,679,916 4,622,119 4,110,241,772
Non banking assets -
Total assets (A) 54,528,616,765 46,875,933,359 101,870,131,540 89,409,707,890 88,891,289,327 381,575,678,880
Liabilities:
Borrowings from Bangladesh Bank, other banks, financial institutions and
- 1,321,098,827 7,613,624,456 2,019,500,000 12,057,477,060 23,011,700,343
agents
Deposits 45,540,708,211 49,385,800,000 91,682,300,000 93,513,400,000 18,212,586,377 298,334,794,587
Provision and other liabilities 6,591,547,666 - 20,480,427,272 5,030,480,782 - 32,102,455,720
Total liabilities (B) 52,132,255,877 50,706,898,827 119,776,351,728 100,563,380,782 30,270,063,437 353,448,950,650
Net liquidity gap (A - B) 2,396,360,888 (3,830,965,468) (17,906,220,188) (11,153,672,892) 58,621,225,890 28,126,728,230
89
Annexure-B.1
Liquidity Statement
(Assets and liabilities maturity analysis)
Up to 1 month 1-3 months 3-12 months 1-5 years Above 5 years Total
Particulars
Assets:
Cash in hand 3,598,790,655 3,598,790,655
Balance with other banks and financial institutions 5,851,302,010 2,373,000,000 200,000,000 15,749,975,574 24,174,277,584
Money at call and on short notice 6,897,100,000 6,897,100,000
Investments 5,138,300 1,607,800,000 8,230,800,000 30,097,800,000 22,942,217,894 62,883,756,194
Loans and advances/investments 35,920,100,000 42,398,300,000 93,389,800,000 55,815,500,000 37,680,510,559 265,204,210,559
Fixed assets including premises, furniture and fixtures 1,522,727,974 7,259,635,772 8,782,363,746
Other assets 1,585,574,838 385,983,856 49,531,540 1,973,679,916 5,559,652,140 9,554,422,290
Non banking assets - - - - - -
Total assets (A) 53,858,005,802 46,765,083,856 101,870,131,540 89,409,707,890 89,191,991,939 381,094,921,027
Liabilities:
Borrowings from Bangladesh Bank, other banks, financial
- 1,266,890,000 7,613,624,456 2,019,500,000 12,057,477,060 22,957,491,516
institutions and agents
Deposits 45,526,500,000 49,385,800,000 91,682,300,000 93,513,400,000 18,212,586,377 298,320,586,377
Provision and other liabilities 6,254,596,002 - 20,480,427,272 5,030,480,782 - 31,765,504,056
Total liabilities (B) 51,781,096,002 50,652,690,000 119,776,351,728 100,563,380,782 30,270,063,437 353,043,581,949
Net liquidity gap (A - B) 2,076,909,800 (3,887,606,144) (17,906,220,188) (11,153,672,892) 58,921,928,502 28,051,339,079
90
Annexure-C

Balance with other banks-Outside Bangladesh (Nostro Account)
2018 2017
Name of the Bank Currency FC Exchange Equivalent FC Exchange Equivalent
type amount rate Taka amount rate Taka
Interest bearing:
Standard Chartered Bank, New York, USA USD 4,101,814.91 83.90 344,142,270.95 1,046,310 82.70 86,529,828
AB Bank Ltd., Mumbai, India ACUD 540,043.52 83.90 45,309,651.33 124,267 82.70 10,276,911
Citibank AG, Frankfurt, Germany EUR 708,978.25 95.52 67,721,708.99 551,022 99.24 54,683,457
Citibank, N.A., New York, USA USD 1,642,071.01 83.90 137,769,757.74 703,612 82.70 58,188,713
Habib American Bank, New York, USA USD 6,383,537.39 83.90 535,578,787.02 1,372,658 82.70 113,518,856
ICICI Bank Ltd., Mumbai, India ACUD 595,859.40 83.90 49,992,603.66 463,432 82.70 38,325,827
JP Morgan Chase Bank N.A., New York, USA USD 1,518,336.35 83.90 127,388,419.77 383,731 82.70 31,734,569
Sonali Bank (UK) Ltd. USD 83.90 0.04 3,111 82.70 257,277
Sonali Bank (UK) Ltd. GBP 106.23 (0.15) 31,246 111.79 3,492,835
Standard Chartered Bank, Kolkata, India ACUD 304,328.48 83.90 25,533,159.47 7,488 82.70 619,283
Standard Chartered Bank, London, UK GBP 54,542.63 106.23 5,793,833.64 217,695 111.79 24,335,170
Standard Chartered Bank, New York OBU USD 962,295.41 83.90 80,736,584.90 67,351 82.70 5,569,926
Wells Fargo Bank, N.A., New York, USA USD 54,690.33 83.90 4,588,518.69 1,057,151 82.70 87,426,417
Mashreq Bank PSC, New York, USA USD 3,678,510.44 83.90 308,627,025.92 1,594,980 82.70 131,904,873
Mashreq Bank, Mumbai, India ACUD 358,655.24 83.90 30,091,174.64 404,037 82.70 33,413,883
Mashreq Bank, Mumbai, India ACUEUR 15,550.78 95.52 1,485,412.58 15,551 99.24 1,543,260
20,919,214 1,764,758,909 8,043,642 681,821,085
Non-interest bearing:
Bank of Bhutan, Pheuntsholing, Bhutan ACUD 199,182.66 83.90 16,711,425.17 248,963 82.70 20,589,244
Bank of Sydney Ltd., Sydney AUD 84,828.00 59.24 5,025,362.50 63,478 64.53 4,096,286
Banque Saudi Fransi, Riyadh SAR 185,336.06 22.36 4,144,044.17 995,605 22.05 21,954,062
Commerz Bank AG, Frankfurt, Germany EUR 6,316.31 95.52 603,334.97 407,904 99.24 40,480,379
Commerz Bank AG, Frankfurt, Germany USD 2,094,142.08 83.90 175,698,520.51 485,914 82.70 40,185,050
Habib Bank AG Zurich, Zurich, Switzerland CHF 84.53 0.13 3,870 84.87 328,475
Habib Metropoliton Bank Ltd., Karachi, Pakistan ACUD 170,403.43 83.90 14,296,847.78 571,135 82.70 47,232,891
HDFC Bank, Mumbai, India ACUD 923,868.82 83.90 77,512,594.00 87,179 82.70 7,209,740
Mashreq Bank PSC, Dubai, UAE AED 3,028,212.89 83.90 69,162,123.48 126,298 22.52 2,843,673
Nepal Bangladesh Bank Ltd., Kathmandu, Nepal ACUD 332,539.70 83.90 27,900,080.83 269,865 82.70 22,317,811
Standard Chartered Bank, Colombo, Srilanka ACUD 355,904.22 83.90 29,860,364.06 240,361 82.70 19,877,855
Standard Chartered Bank, Mumbai (AEB), India ACUD 25,255.00 83.90 2,118,894.50 25,255 82.70 2,088,589
Bank of Tokyo-Mitsubishi, JPY YEN 105,221,057.57 0.76 79,567,794.14 44,466,787 0.73 32,630,020
United Bank Limited, Karachi, Pakistan ACUD 44,033.18 83.90 3,694,383.80 43,142 82.70 3,567,858
Zuercher Kantonal Bank, Zurich, Switzerland CHF 21,920.54 84.53 1,852,844.24 212,127 84.87 18,003,835
112,693,000 508,148,614 48,247,883 283,405,768
133,612,215 2,272,907,523 56,291,525 965,226,853
91
Annexure-D

Details of Large Loan
2018 2017
Number of clients 34 29
Amount of outstanding advances (Amount in million Taka) 139,088.20 115,640.90
Amount of classified advances (Amount in million Taka) Nil NIL
Measures taken for recovery (Taka) Nil NIL
Client-wise break up is as follows:

(Amount in million Taka)
Outstanding as at 31 December 2018
Sl. Outstanding as at 31 December 2017
Name of clients
no. Non Non
Funded Total Funded Total
funded funded
1 Abul Khair Group 563.10 5,432.10 5,995.20 824.40 3,947.40 4,771.80
2 ACS Textiles (Bangladesh) Limited and its 2,088.90 1,998.50 4,087.40 2,088.50 1,950.90 4,039.40
related concern
3 Bashundhara Group 4,976.00 4,693.30 9,669.30 3,119.70 8,009.60 11,129.30
4 Bengal Group 2,315.00 1,201.90 3,516.90 965.90 615.10 1,581.00
5 Capital Banani One Ltd. and its related 4,222.90 1.40 4,224.30 4,082.30 - 4,082.30
concern
6 Cassiopea Fashion Ltd. and its related 997.00 2,979.70 3,976.70 556.80 3,291.50 3,848.30
concerns
7 Sparrow Apparels Ltd. and its related 1,521.30 6,572.50 8,093.80 1,226.70 3,909.00 5,135.70
concerns
8 Deshbandhu Group 6,156.60 1,272.70 7,429.30 5,343.00 2,004.80 7,347.80
9 Grameen Phone Limited - 1,956.40 1,956.40 - 1,711.10 1,711.10
10 Irish Fabrics Limited and its related 526.20 2,188.30 2,714.50 623.60 1,708.10 2,331.70
concerns
11 KDS Group 672.70 1,373.50 2,046.20 803.50 1,374.20 2,177.70
12 Keya Group 5,077.20 4,634.40 9,711.60 4,459.80 5,177.10 9,636.90
13 Aaron Denim Limited and its related 2,719.00 851.70 3,570.70 2,289.80 1,088.60 3,378.40
concerns
14 Maksons Spinning Mills Ltd. 1,389.10 3,118.30 4,507.40 2,165.20 2,370.60 4,535.80
15 Meghna Group 0.90 7,215.50 7,216.40 - 9,929.60 9,929.60
16 Mother Steel Ltd. and its related concerns 339.70 20.20 359.90 577.00 330.30 907.30
17 N. R. Group 1,009.70 3,091.40 4,101.10 660.60 2,171.20 2,831.80

18 Partex Group 2,181.40 2,424.90 4,606.30 1,303.50 1,902.40 3,205.90
19 S. Alam Group 4,108.70 - 4,108.70 516.00 980.90 1,496.90
20 Yunusco (BD) Limited and its related 1,015.80 1,444.50 2,460.30 560.30 1,753.80 2,314.10
concerns
21 T. K. Group 0.20 4,767.90 4,768.10 299.80 3,645.00 3,944.80
22 Rupayan Housing Estate Limited and its 5,082.90 - 5,082.90 4,814.70 1.70 4,816.40
related concerns
23 Chittagong Asian Apparels Ltd. and its 1,275.60 1,496.40 2,772.00 1,712.50 1,924.00 3,636.50
related concerns
24 Snowtex Outerwear Limited and its related 2,754.70 2,422.60 5,177.30 2,080.30 2,410.50 4,490.80
concerns
25 Generation Next Fashions Limited 1,756.60 1,683.20 3,439.80 - - -
26 Designtex Fashions Limited and its related 2,059.50 1,486.40 3,545.90 1,966.60 558.20 2,524.80
concerns
27 Navana Group 4,187.40 44.80 4,232.20 3,732.30 25.20 3,757.50
28 City Group - 1,716.00 1,716.00 - 3,409.00 3,409.00
29 Bashundhara Oil and Gas Company - 915.90 915.90 - 12.50 12.50
Limited
30 KSRM Steel Plant Ltd. and its related 1,536.40 1,088.50 2,624.90 2,112.50 543.30 2,655.80
concerns
31 Vertex Group 304.10 335.30 639.40
32 Shanin Group 1,437.70 2,363.60 3,801.30
33 Masuma Khatun Textile Industries Ltd. 2,576.50 769.90 3,346.40
34 Bashundhara Trading Company Ltd. and 1,431.80 1,241.90 2,673.70
its related concerns
Total 66,284.60 72,803.60 139,088.20 48,885.30 66,755.60 115,640.90
92
Annexure-E
Schedule of fixed assets including premises, furniture and fixtures

Cost/Revaluation Depreciation Written

Balance Additions Revalued Disposal Balance Balance Charged Adjustment Balance down value
Particulars
as at during during during as at Rate of as at during for disposal as at as at
1 Jan 2018 the Period the year the period 31 Dec 2018 dep. 1 Jan 2018 the period during the period 31 Dec 2018 31 Dec 2018
Taka Taka Taka Taka % Taka Taka Taka Taka Taka
A. Own assets
Office:
Land 5,770,913,319 26,337,374 - - 5,797,250,693 - - - - - 5,797,250,693
Building 1,897,220,492 92,041,785 - - 1,989,262,277 4% 469,770,862 57,106,336 - 526,877,198 1,462,385,079
Furniture and fixtures 1,094,444,595 131,764,299 - (5,528,110) 1,220,680,784 10% 463,787,263 71,716,819 (2,583,482) 532,920,600 687,760,184
Office Appliances 14,620,108 1,307,131 - (644,369) 15,282,870 20% 9,087,575 1,189,866 (92,206) 10,185,235 5,097,635
Computer 23,702,837 9,941,996 - - 33,644,833 20% 10,641,672 3,657,608 230,529 14,529,809 19,115,024
Electrical Appliances 1,288,715,737 90,571,373 - (12,503,501) 1,366,783,609 20% 731,441,546 121,788,304 (7,518,747) 845,711,103 521,072,506
ATM Booth 207,974,413 48,098,082 - (3,190,231) 252,882,264 20% 105,072,020 25,195,613 (193,490) 130,074,144 122,808,120
Professional and Reference Books - - - - - 30% - - - - -
Software 231,318,236 7,053,253 - - 238,371,489 20% 83,066,567 30,885,847 - 113,952,414 124,419,075
Motor vehicles 71,754,000 12,337,917 - (6,497,000) 77,594,917 20% 35,843,673 13,758,785 (739,016) 48,863,442 28,731,475
TOTAL 10,600,663,737 419,453,211 - (28,363,211) 10,991,753,737 1,908,711,179 325,299,179 - 10,896,412 2,223,113,946 8,768,639,790
Residence of executives:
Furniture and fixtures 4,679,290 3,650,000 - (3,125,000) 5,204,290 10% 1,635,675 395,486 (319,349) 1,711,812 3,492,478
Electrical Appliances 22,013,830 8,675,051 - (10,302,201) 20,386,680 20% 11,631,788 2,162,850 (2,451,776) 11,342,863 9,043,817
26,693,120 12,325,051 - (13,427,201) 25,590,970 13,267,462 2,558,337 - 2,771,125 13,054,674 12,536,296
10,627,356,857 431,778,262 - (41,790,412) 11,017,344,707 1,921,978,642 327,857,516 - 13,667,537 2,236,168,621 8,781,176,086
B. Leased assets
Furniture and fixtures 106,026,227 - - - 106,026,227 10% 106,026,227 - - 106,026,227 -
Motor vehicles 68,600,615 - - (15,188,000) 53,412,615 20% 65,409,563 2,003,392 (15,188,000) 52,224,955 1,187,660
174,626,842 - - (15,188,000) 159,438,842 171,435,790 2,003,392 (15,188,000) 158,251,182 1,187,660
Balance as at 31 December ' 2018 10,801,983,699 431,778,262 - (56,978,412) 11,176,783,549 2,093,414,432 329,860,908 (28,855,537) 2,394,419,803 8,782,363,746
Balance as at 31 December ' 2017 10,406,610,372 433,413,328 - (38,040,002) 10,801,983,699 1,792,923,672 317,580,081 (17,089,322) 2,093,414,431 8,708,569,268
93
Annexure-F

Names of Directors and their interest in different entities
Names of firms/companies in which

Sl. Status with interested as proprietor/ director/ Position with % of
Name of the Directors
no. the Bank managing agent/ guarantor/ employee/ Different entities Shareholdings
partner, etc.
1 Mr. Alamgir Kabir, FCA Asia Insurance Limited Director 2.97%
Chairman
National Life Insurance Co. Ltd. Independent Director Nil
2 Mrs. Duluma Ahmed Mutual Food Products Limited Chairman 31.78%
Vice
Mutual Milk Products Limited " 16.00%
Chairperson
Mutual Trading Co. Limited Director 12.96%
3 Mr. M. A. Kashem Director Rose Corner (Pvt.) Limited Chairman 50.00%
4 Mr. Azim Uddin Ahmed Mutual Food Products Limited Managing Director 44.78%
Mutual Milk Products Limited " 52.00%
Director
Mutual Trading Co. Limited Chairman & MD 71.30%
AD Holdings Limited Chairman 0.50%
5 Mrs. Jusna Ara Kashem Director Rose Corner (Pvt) Limited Director 20.00%
6 Mr. Md. Akikur Rahman Director - - Nil
7 Mrs. Rehana Rahman Director Bengal Tradeways Limited Managing Director 74.61%
CHB Building Technologies Limited Director 25.00%
8 Mrs. Sirat Monira Director - - Nil
Independent
9 Mr. Syed Sajedul Kairm - - Nil
Director
Dr. Quazi Mesbahuddin Independent
10 - - Nil
Ahmed Director
Managing
11 Mr. M. Kamal Hossain - - Nil
Director
94
Annexure-G
Islamic Banking Branches
Balance Sheet
2018 2017
Note Taka Taka
PROPERTY AND ASSETS
Cash 1
In hand (including foreign currencies) 150,219,956 166,396,106
(including foreign currencies) 1,063,945,753 886,571,821
1,214,165,709 1,052,967,927
In Bangladesh 1,005,380,998 3,512,215
1,005,380,998 3,512,215
Money at call and on short notice - -
Investments in shares and securities 3
Government 970,000,000 650,000,000
Others 3,244,853,863 2,790,589,811
4,214,853,863 3,440,589,811
Investments 4
General Investments etc. 15,327,613,616 13,963,868,517
Bills purchased and discounted 357,093,888 273,282,476
15,684,707,504 14,237,150,993
Fixed assets including premises, furniture and fixtures 5 25,338,771 24,870,249
Other assets 6 33,958,174 2,414,475,850
Non - banking assets - -
Total assets 22,178,405,018 21,173,567,045
Liabilities
Borrowings from other banks, financial institutions and agents 7 - 2,000,000,000

Bills payable 82,297,718 131,716,580
20,001,881,588 16,699,764,297

Letters of guarantee 10.2 1,846,759,405 1,685,858,656
Irrevocable letters of credit 10.3 2,285,549,994 1,606,363,135
Bills for collection 10.4 1,267,760,650 955,896,017
Other contingent liabilities - -
7,106,252,233 5,403,268,052
95
Annexure-G.1
Profit and Loss Account
2018 2017
Note Taka Taka
Profit on investments 11 1,998,658,866 1,634,871,176

Profit shared on deposits and borrowings etc. 12 (1,289,447,769) (938,503,557)
Net profit on investments 709,211,098 696,367,619
Commission, exchange and brokerage 13 143,377,657 93,525,532
Other operating income 14 32,545,319 30,251,448
175,922,976 123,776,980
Total operating income (A) 885,134,073 820,144,599
Salaries and allowances 15 75,385,417 76,640,857

Rent, taxes, insurance, electricity etc. 16 45,010,784 41,212,498
Legal expenses - 228,324
Postage, stamp, telecommunication etc. 17 8,186,790 9,150,825
Stationery, printing, advertisements etc. 18 4,555,279 3,454,726
Depreciation and repair of bank's assets 19 7,413,100 7,535,412
Other expenses 20 30,769,313 29,042,378
Total operating expenses (B) 171,320,683 167,265,018
Profit before provision (C=A-B) 713,813,390 652,879,581
Provision for investments 9.1

General provision 3,444,675 40,847,968
Specific provision (948,089,521) 206,808,920
(944,644,846) 247,656,888
Provision for off-balance sheet items 9.2 4,352,235 19,042,419
Provision for diminution in value of investments 9.3 54,619,407 (155,573,513)
Total provision (D) (885,673,204) 111,125,794
Total profit before tax (C-D) 1,599,486,594 541,753,787
96
Annexure-G.2
2018 2017
Note Taka Taka
1 Cash
In hand:
Local currency 148,326,584 165,908,176
Foreign currencies 1,893,371 487,930
150,219,956 166,396,106
Balance with Bangladesh Bank:
Local currency 1,058,360,221 885,851,119
Foreign currencies - -
1,058,360,221 885,851,119
Balance with Sonali Bank Limited (as agent of Bangladesh Bank):
Local currency 5,585,532 720,702
1,063,945,753 886,571,821
1,214,165,709 1,052,967,927
1.1 Cash Reserve Ratio (CRR) and Statutory Liquidity Ratio (SLR) have been calculated and maintained in accordance
with section 33 of the Bank Companies Act 1991, MPD Circular nos. 4 and 5 dated 1 December 2010 and MPD
Circular no. 1 and 2 dated 23 June 2014 and 10 December 2013 and DOS Circular No. 1 dated 19 January 2014
and MPD Circulars No. 1 dated 03 April 2018.
The statutory Cash Reserve Ratio on the Shariah-based Islamic Bank's demand and time liabilities at the rate of
minimum 5.0% on daily basis and 5.50% on bi-weekly basis been calculated and maintained with Bangladesh Bank
in current account and 5.50% Statutory Liquidity Ratio on the same liabilities has also been maintained in the form
of treasury bills, bonds and debentures including excess cash reserve balance with Bangladesh Bank. Both the
reserves maintained by the Bank are in excess of the statutory requirements, as shown below:
1.1.1 a) Cash Reserve Ratio (CRR) for Islamic Banking
Required reserve (5.50% of average Demand and Time Liabilities) 1,007,891,950 819,034,223
Actual reserve held (Average daily on bi-weekly basis): 1,058,360,221 885,851,119
Surplus 50,468,271 66,816,896
b) Statutory Liquidity Ratio (SLR) for Islamic Banking
Required reserve (5.50 % of average Demand and Time Liabilities) 1,007,891,950 693,028,958
Surplus 168,368,321 190,891,938
Held for Statutory Liquidity Ratio of Islamic Banking:
Cash in hand 150,220,000 166,396,000

Balance with agent bank (Sonali Bank Ltd.) as per statement 5,572,000 708,000
Government Securities (HTM) 970,000,000 650,000,000
1,176,260,271 883,920,896
97
2018 2017
Note Taka Taka
In Bangladesh 2.1 1,005,380,998 3,512,215

Outside Bangladesh
1,005,380,998 3,512,215
2.1 In Bangladesh
Current account with:

Sonali Bank Limited 740 740
740 740
Short term deposits account with:

Sonali Bank Limited 1,134 1,134
505,380,258 3,511,475
Fixed deposits with other banks:
Social Islami Bank Limited 500,000,000
500,000,000 -
1,005,380,998 3,512,215
3 Investments in shares and securities
Bangladesh Government Islamic Bond 970,000,000 650,000,000

Others 3.1 3,244,853,863 2,790,589,811
4,214,853,863 3,440,589,811
3.1 Others

Shares in un-listed companies - -
3,244,853,863 2,790,589,811
Provision for diminution in the market value of shares (621,210,215) (566,590,808)
2,623,643,648 2,223,999,003
3.2 Investments classified as per Bangladesh Bank Circular
Held to maturity (HTM) 970,000,000 650,000,000

Other securities 3,244,853,863 2,790,589,811
4,214,853,863 3,440,589,811
3.3 Cost and market value of investments

2018 2017
Cost price Market price Market price
Taka Taka Taka
Bangladesh Government Islamic Bond 970,000,000 970,000,000 650,000,000
970,000,000 970,000,000 650,000,000
3.3.2 Others (Investment in shares)

2018 2017

Taka Taka Taka
Shares in un-listed companies - - -
2,623,643,648 3,244,853,863 2,790,589,811
98
3.4 Market price, cost price and related provision of investments as on 31 December 2018
Differences
Name of the Company 2018 (Provision to be
Required)
Market price Cost price
Taka Taka
1 BAY Leasing and Investment Limited 280,453,126 653,782,763 (373,329,637)

2 EXIM Bank 192,288,092 370,656,956 (178,368,864)
3 Lafarge Holcim Bangladesh Limited 43,500,000 89,321,368 (45,821,368)
4 Delta Life 7,502,195 12,382,964 (4,880,769)
5 National Life Insurance Company Limited 1,165,175,567 772,488,040 392,687,527
6 Prime Bank Limited 315,083,937 460,263,791 (145,179,854)
7 AFC Agro Biotech Limited 26,514,653 36,946,327 (10,431,674)
8 Active Fine Chemicals 18,053,155 21,204,434 (3,151,279)
9 Aftab Automobiles Limited 85,682,310 145,359,192 (59,676,882)
10 Argon Denim 17,316,130 22,675,929 (5,359,799)
11 Barka Power 65,743,532 80,616,388 (14,872,856)
12 Bangladesh Shipping Corporation Limited 38,341,485 49,874,160 (11,532,675)
13 BSRM Limited 36,959,783 56,679,577 (19,719,794)
14 BSRM Steel Mills Limited 4,585,944 7,019,678 (2,433,734)
15 Doreen Power 17,753,780 23,687,937 (5,934,157)
16 Eastern Housing Limited 15,800,848 18,217,288 (2,416,440)
17 Golden Harvest Limited 14,865,833 18,665,067 (3,799,234)
18 Global Heavy Chemical Limited 23,807,785 34,247,190 (10,439,405)
19 ICB 19,799,899 27,605,297 (7,805,398)
20 INTRACO Refuling Station Limited 3,114,141 4,977,033 (1,862,892)
21 Matin Spinning Limited 11,315,640 14,044,434 (2,728,794)
22 METROSPIN 816,000 1,184,469 (368,469)
23 National Polymar 5,446,666 6,271,005 (824,339)
24 OLYMPIC Limited 10,810,000 12,280,119 (1,470,119)
25 Orion Pharma 44,302,821 61,952,895 (17,650,074)
26 Premier Leasing 7,178,100 15,325,745 (8,147,645)
27 Prime Finance Limited 7,643,035 26,958,933 (19,315,898)
28 Paramount Textile Limited 1,153,250 1,085,254 67,996
29 RSRM STEEL Limited 53,140,758 77,550,224 (24,409,466)
30 Saif Power Tec Limited 9,821,370 13,859,527 (4,038,157)
31 Shahjibazar Power Company Limited 58,586,400 79,199,118 (20,612,718)
32 Titas Gas 5,460,000 7,670,726 (2,210,726)
33 United Finance 10,612,613 14,197,006 (3,584,393)
34 WMSHIPYARD Sheppeard Limited 5,014,800 6,603,030 (1,588,230)
2,623,643,648 3,244,853,863 (621,210,215)
Actual provision 621,210,215
Surplus/(deficit) -
4 Investments
Investments 4.1 15,327,613,616 13,963,868,517

Bills purchased and discounted 4.2 357,093,888 273,282,476
15,684,707,504 14,237,150,993
99
2018 2017
Note Taka Taka
4.1 Investments
In Bangladesh
Demand Investment 528,987,815 414,036,921
Bai-Muajjal (Time) Investment 195,402,971 399,099,215
Bai-Muajjal Time under CCS 79,622,265 74,507,241
Bai-Murabaha-BLC - 28,009,964
Bai-Murabaha-LTR 1,193,826,782 800,511,034
Bai-Salam (PACKING CREDIT) 149,133,314 64,089,258
Staff House Building Investment 16,635,522 12,806,256
Export Development Fund (EDF) against LC 773,063,701 712,130,203
Investment against Cash Incentive 17,131,016 19,626,562
Bai-Muajjal - Investment 3,833,616,144 3,668,800,807
Murabaha - Investment 617,028,554 639,319,763
Hire purchase - Investment 7,923,165,532 7,130,931,292
15,327,613,616 13,963,868,517
15,327,613,616 13,963,868,517
In Bangladesh 357,093,888 255,665,585

Outside Bangladesh - 17,616,891
357,093,888 273,282,476
Cost:
Furniture and fixture 25,664,381 24,815,083
Office Appliances 81,620 81,620
Electrical Appliances 29,402,923 27,106,877
Motor Vehicles 2,620,000 2,620,000
ATM Booth 6,925,030 5,524,957
64,693,954 60,148,537
Furniture and fixture 13,662,545 12,547,153
Office Appliances 81,618 81,618
Electrical Appliances 21,886,863 19,896,210
Motor Vehicles 1,659,346 1,135,342
ATM Booth 2,064,811 1,617,965
39,355,183 35,278,288
Written down value as at 31 December 25,338,771 24,870,249
6 Classification of other assets
i) Stationery, stamps, printing materials, etc. 496,036 561,840

ii) Advance rent and advertisement 15,535,825 23,780,432
iii) Interest accrued on investment but not collected,
commission and brokerage receivable on shares and
debentures, and other income receivables 631,241 2,431,241
iv) Security deposits 69,460 69,460
v) Preliminary, formation and organisational expenses,
renovation, development and prepaid expenses 12,859,073 32,154,174
vii) Suspense account 1,676,660 2,205,290
viii) Silver - -
ix) Head office general account - 2,351,077,534
X) Others 2,689,880 2,195,880
33,958,174 2,414,475,850
100
2018 2017
Note Taka Taka
7 Borrowing from other banks, financial institutions and agents
In Bangladesh 7.1 - 2,000,000,000

- 2,000,000,000
7.1 In Bangladesh
Secured
Borrowing against securities from Bangladesh Bank 2,000,000,000
- 2,000,000,000
Unsecured - -
- 2,000,000,000
8 Deposits and other accounts
Al-wadeeah current accounts and other accounts

Al-wadeeah current deposits 480,070,113 512,649,667
Foreign currency deposits 168,005,202 52,702,535
Sundry deposits 1,402,171,221 1,077,794,441
2,050,246,536 1,643,146,644
Bills payable
Payment order issued 82,164,252 131,632,916
T.T. payable 80,630 30,628
Demand draft 52,836 53,036
82,297,718 131,716,580
Mudaraba savings bank deposits 2,007,450,494 1,919,612,283
Mudaraba fixed deposits

Mudaraba fixed deposits 14,112,403,140 10,921,320,630
Mudaraba Special notice deposits 519,691,322 758,955,126
Scheme deposits 1,005,212,686 1,324,085,318
Interest Payable on FDR/Scheme 224,579,694 927,717
15,861,886,841 13,005,288,790
20,001,881,588 16,699,764,297
9 Other liabilities
Provision for investments 9.1 367,401,062 1,272,781,335

Provision for off-balance sheet exposures 9.2 58,384,916 54,032,681
Profit suspense account 120,629,304 147,180,025
Accrued expenses 70,443 1,167,700
Profit payable on borrowings - 7,390,820
Accounts payable - Bangladesh Bank 5,955 -
Accounts payable - others 1,774,777 2,343,610
Provision for diminution in the market value of share 9.2 621,210,215 566,590,808
Unearned income 380,676,896 360,014,159
Head office general account 561,325,472 -
Withholding tax 65,044,390 62,301,610
2,176,523,430 2,473,802,748
9.1 A. General provision for investments

Provision made during the year 3,444,675 40,847,968
112,678,750 109,234,075
Adjustments made during the year -
101
2018 2017
Note Taka Taka
B. Specific provision for investments
Balance as at 1 January 1,163,547,260 954,803,734

Recoveries of amounts previously written off 39,264,573 1,934,606
Provision made during the year - 206,808,920
1,202,811,833 1,163,547,260
Adjustments made during the year (948,089,521) -
Balance as at 31 December 254,722,312 1,163,547,260
C. Total provision on investments (C=A+B) 367,401,062 1,272,781,335
9.2 Provision for off-balance sheet exposures

Provision made during the year 4,352,235 19,042,419
58,384,916 54,032,681
Adjustments made during the year - -
9.3 Provision for diminution in the market value of share

Provision made during the year 54,619,407 -
621,210,215 722,164,321
Adjustments made during the year - (155,573,513)
10 Contingent liabilities
10.1 Acceptances and endorsements
Acceptance under Letters of credit - Import 626,409,221 653,379,843

Acceptance under Letters of credit - Export 1,079,772,962 501,770,401
1,706,182,184 1,155,150,244
10.2 Letters of guarantee
Local 1,507,850,405 1,462,136,656

Foreign 338,909,000 223,722,000
1,846,759,405 1,685,858,656
10.2.1 Balance for which the Bank is contingently liable in respect of

guarantee issued favouring:
Directors or officers - -
Government - -
Banks and other financial institutions - -
Others 1,846,759,405 1,685,858,656
1,846,759,405 1,685,858,656
10.3 Irrevocable letters of credit (L/C)
Back to back L/C 991,945,659 640,872,199

Others 1,293,604,336 965,490,935
2,285,549,994 1,606,363,135
102
2018 2017
Note Taka Taka
10.4 Bills for collection
Local 637,248,073 547,674,110

Foreign 630,512,576 408,221,907
1,267,760,650 955,896,017
11. Profit on investment
Demand investment 23,067,695 26,128,573

Bai-Muajjal (Time) investment 36,337,316 36,067,607
Bai-Muajjal time under CCS 8,590,851 6,979,097
Bai-Murabaha-BLC 4,818,214 9,510,323
Bai-Murabaha-LTR 129,255,381 70,059,575
Bai-Salam (PACKING CREDIT) 9,020,244 5,781,431
Staff house building investment - 118
Staff car loan investment - 33,976
Investment against cash incentive 1,948,784 2,189,502
Bai-Muajjal - Investment 339,377,788 307,187,319
Murabaha - Investment 26,208,793 63,984,546
Hire purchase - Investment 857,945,183 491,817,282
Profit on special term deposit STD 68,783 2,267,896
Bills purchased and discounted 44,359,133 29,674,166
Profit on placement with other banks - 13,878,333
Inter branch profit income 517,660,703 569,311,431
1,998,658,866 1,634,871,176
12. Profit shared on deposits and borrowings etc.
Profit shared on deposits (Islamic Banking Branch):

Mudaraba Savings Deposits (MSB) 272,778,245 284,524,614
Mudaraba Short Term Deposits (MSTD) 35,504,446 38,568,104
Mudaraba Fixed Term Deposits (MFDR) 896,801,767 533,095,509
Interest on foreign bank accounts 1,897,963 -
Profit on Re-finance borrowings 82,465,347 82,315,330
1,289,447,769 938,503,557
13 Commission, exchange and brokerage
Commission and brokerage 119,684,128 77,936,579

Exchange gain 23,693,530 15,588,953
143,377,657 93,525,532
14 Other operating income

Other fees-telephone and postage 3,051,706 2,919,908
Income from retail banking 73,000 154,153
Other fees - SWIFT 13,844,029 10,092,965
32,545,319 30,251,448
103
2018 2017
Note Taka Taka
Basic salary 40,988,179 39,089,305

Allowances 24,305,639 23,573,491
Bonus 6,456,643 10,512,942
Provident fund 3,634,956 3,465,119
75,385,417 76,640,857
Rent, rates and taxes 28,776,589 28,608,351

Insurance 11,837,732 8,612,250
Electricity and lighting 4,396,463 3,991,897
45,010,784 41,212,498
Postage 3,202,018 2,753,978

Telephone /Telex 265,864 318,240
VSAT on-line 1,994,914 2,202,780
SWIFT services 2,723,994 3,875,827
8,186,790 9,150,825
Office stationery 934,342 979,558

Printing stationery 1,297,330 1,044,226
Security stationery 2,073,296 1,275,161
Computer stationery 244,623 152,662
Publicity and advertisement 5,688 3,118
4,555,279 3,454,726
Depreciation:
Motor vehicles 524,004 524,004
ATM Booth 1,005,873 872,898
4,515,142 4,341,371
Repair:
Furniture and fixtures 497,864 365,246
Office and electrical appliance 1,198,035 1,757,874
Motor vehicles 277,694 151,348
Repair, maintenance and utilities 924,365 919,573
2,897,958 3,194,041
7,413,100 7,535,412
104
2018 2017
Note Taka Taka
20 Other expenses
Security and cleaning 8,913,162 7,022,353

Entertainment 1,466,620 1,393,014
Car expenses 6,398,613 7,829,324
Books and periodicals 36,820 34,477
Subscription and donation 55,905 -
Travelling expenses 326,568 323,989
Conveyance 347,421 342,006
Fuel 246,328 227,268
Uniforms and apparels 104,398 125,220
Loss on sale of fixed assets 14,551 13,678
Expenses relating ATM services 328,713 -
Expenses for CIB report 5,920 4,920
Expenses regarding retail banking 951,157 1,011,211
Miscellaneous 11,573,137 10,714,917
30,769,313 29,042,378
105
Annexure-H
Off-Shore Banking Unit, Bangladesh
Balance Sheet
2018 2017
Note USD Taka Taka
PROPERTY AND ASSETS
Cash
In hand (including foreign currencies) - - -
(including foreign currencies) - - -
- - -
Balances with other banks and financial institutions 3
In Bangladesh 1,311,143 110,004,898 122,490,327
Outside Bangladesh 962,295 80,736,585 5,569,926
2,273,438 190,741,482 128,060,253
Money at Call and on short notice 10,000,000 839,000,000 289,450,000
Investments
Government - - -
Others - - -
- - -
Loans and advances 4
Loans, cash credit & overdrafts etc. 62,281,780 5,225,441,312 3,048,637,990
Bills purchased and discounted 77,697,591 6,518,827,903 5,075,982,118
139,979,371 11,744,269,214 8,124,620,108
Fixed assets including premises, furniture and fixtures 5 15,485 1,299,197 1,531,504
Other assets 6 194,578 16,325,091 20,124,004
Non-banking assets - - -
Total assets 152,462,872 12,791,634,985 8,563,785,868
Liabilities
Borrowings from other banks, financial institutions
and agents 7 142,500,000 11,955,750,000 8,061,596,000
Current accounts and other accounts 77,927 6,538,058 8,063,742
Bills payable - - -
Savings bank deposits - - -
Fixed deposits 406,360 34,093,601 27,215,079
484,287 40,631,659 35,278,821
Other liabilities 9 3,227,309 265,977,326 116,223,341
Total liabilities 146,211,595 12,262,358,985 8,213,098,162
Paid up capital - - -
Statutory reserve - - -
Other reserves - - -
Foreign currency losses - - -
Retained earnings 10 6,251,276 529,276,000 350,687,706
Total shareholders' equity 6,251,276 529,276,000 350,687,706
Total liabilities and shareholders' equity 152,462,872 12,791,634,985 8,563,785,868
106
Balance Sheet
2018 2017
Note USD Taka Taka
Acceptances and endorsements - - -
Letters of guarantee - - -
Irrevocable letters of credit - - 39,099,223
Bills for collection 2,129,080 176,671,092 161,100,293
Other contingent liabilities - - -
total contingent liabilities 2,129,080 176,671,092 200,199,516
Other commitments
Documentary credits and short term trade-related transactions - - -
Forward assets purchased and forward deposits placed - - -
Undrawn note issuance and revolving underwriting facilities - - -
Undrawn formal standby facilities, credit lines and other commitments - - -
Total other commitments - - -
Total off-balance sheet items including contingent liabilities 2,129,080 176,671,092 200,199,516
107
Annexure-H.1
Profit and Loss account
2018 2017
Note USD Taka Taka
Interest income 11 8,061,335 673,202,880 448,187,159

Interest paid on deposits and borrowings etc. 12 (5,982,051) (499,561,684) (299,456,776)
Net interest income 2,079,284 173,641,196 148,730,383
Commission, exchange & brokerage 13 400,370 33,434,928 28,552,410
Other operating income 13.1 141,700 11,833,382 6,983,250
542,070 45,268,310 35,535,660
Total operating income (A) 2,621,354 218,909,506 184,266,043
Salaries and allowances 14 53,184 4,441,390 4,348,142

Rent, taxes, insurance, electricity etc. 15 12,688 1,059,615 1,015,474
Legal expenses - - -
Postage, stamp, telecommunication 16 13,235 1,105,281 973,283
Stationery, printing, advertisements etc. 17 1,537 128,332 101,586
Depreciation and repair of bank's assets 18 3,160 263,905 332,560
Other expenses 19 55,350 4,622,300 4,255,775
Total operating expenses (B) 139,155 11,620,824 11,026,819
Operating profit (C=A-B) 2,482,199 207,288,683 173,239,224
Provision for loans and advances
General provision 9.1 431,466 36,200,000 17,977,179
Specific provision - - -
431,466 36,200,000 17,977,179
Provision for diminution in value of investments - -
Other provisions 9.2 (2,918) (235,284) (100,652)
Total provision (D) 428,548 35,964,716 17,876,527
Total profit before tax (C-D) 2,053,651 171,323,967 155,362,697
108
Annexure-H.2
1 Status of the unit
Off-shore Banking Unit (OBU) is a separate business unit of Southeast Bank Limited, governed under the Rules and Guidelines of
Bangladesh Bank. The Bank obtained permission to operate OBU vide Letter No. BRPD(P-3)744(98)/2008-2213 dated June 24,
2008. The Bank presently has 2 (two) OBUs – one at Export Processing Zone, Dhaka and the other at Export Processing Zone,
Chittagong.
OBU boosts up foreign trade by extending finance to industrial units inside and outside the Export Processing Zone (EPZ) area.
OBU is free to make loans/advances to persons/institutions not resident in Bangladesh and to make loans/advances to Type-A
(wholly foreign owned) units in the EPZs in Bangladesh. Industrial units outside the EPZs and Type-B and Type-C industrial units
within the EPZs in Bangladesh may avail term loans in foreign currencies from OBU subject to compliance with the guidelines
issued by the Board of Investment for borrowing abroad by industrial units Bangladesh.
2 Significant accounting policies and basis of preparations
2.1 Basis of preparation
The financial statements are prepared on the basis of a going concern and represent the financial performance and financial
position of the OBU. The financial statements of the OBU are prepared in accordance with the Bank Companies Act 1991, in
particular, Banking Regulation and Policy Department (BRPD) Circular No. 14 dated June 25, 2003, other Bangladesh Bank
Circulars and International Financial Reporting Standards (IFRS).
2.2 Foreign currency
Items included in the financial statements are measured using the currency of the primary economic environment in which the
entity operates, i.e., the functional currency. The financial statements are presented in Taka which is the Bank’s functional and
presentation currency. Figures appearing in the financial statements have been rounded off to the nearest Taka. Assets &
liabilities and income & expenses have been converted into Taka currency @ US$1 = Tk. 83.9000 (closing rate as at 31
December 2018) and Tk.83.5101 (average rate which represents the year end) respectively.
2.3 Basis of Accounting
OBU maintains its accounting records in USD from which accounts are prepared according to the Bank Companies Act, 1991,
Bangladesh Financial Reporting Standards and other applicable directives issues by Bangladesh Bank.
2.4 Functional and presentation currency
The Financial Statements of OBU are presented in both USD and Bangladesh Taka (Taka/Tk.) except as otherwise indicated.
Financial information presented in Taka and USD has been rounded off to the nearest integer. and financial information presented
in USD has been rounded into two decimal points.
2018 2017
Note USD Taka Taka
In Bangladesh 3.1 1,311,143 110,004,898 122,490,327

Outside Bangladesh 3.2 962,295 80,736,585 5,569,926
2,273,438 190,741,483 128,060,253
109
2018 2017
Note USD Taka Taka
3.1 In Bangladesh
Southeast Bank Limited 1,311,143 110,004,898 122,490,327

Other commercial bank - - -
1,311,143 110,004,898 122,490,327
3.2 Outside Bangladesh (current account)
Standard Chartered Bank, New York 962,295 80,736,585 5,569,926
Money at call and on short notice

In bank;
Placement SEBL Head Office 10,000,000 839,000,000 289,450,000
10,000,000 839,000,000 289,450,000
4 Loans and advances
Loans, cash credit, overdrafts etc. 4.1 62,281,780 5,225,441,312 3,048,637,990

Bills purchased and discounted 4.2 77,697,591 6,518,827,903 5,075,982,118
139,979,371 11,744,269,214 8,124,620,108
4.1 Loans, cash credit, overdrafts etc.
In Bangladesh - - -
Outside Bangladesh 4.1.1 62,281,780 5,225,441,312 3,048,637,990
62,281,780 5,225,441,312 3,048,637,990
4.1.1 Outside Bangladesh
Time loan 29,556,084 2,479,755,489 708,775,158

Term loan 30,352,152 2,546,545,580 2,184,773,489
Advance-LTR 954,839 80,110,992 57,970,184
Loan against foreign bill 1,418,704 119,029,250 97,119,159
62,281,780 5,225,441,312 3,048,637,990
In Bangladesh - - -
Outside Bangladesh 77,697,591 6,518,827,903 5,075,982,118
77,697,591 6,518,827,903 5,075,982,118
Cost:
Furniture and fixtures 40,730 3,417,250 3,368,373
Electrical appliances 22,067 1,851,389 1,824,909
62,797 5,268,639 5,193,283
Furniture and fixtures 27,102 2,273,891 2,027,555
Electrical appliances 20,209 1,695,551 1,634,224
47,312 3,969,442 3,661,779
Written down value as at 31 December 15,485 1,299,197 1,531,504
6 Other assets
Interest on calls and placements(USD) 58,056 4,870,862 920,607

Prepaid management fee GCPF 134,145 11,254,793 13,456,951
Prepaid interest mashreq - - 5,560,583
Insurance 89 7,443 8,171
Advance office rent 2,149 180,270 177,692
Others 140 11,723 -
194,578 16,325,091 20,124,004
110
2018 2017
Note USD Taka Taka
7 Borrowing from other banks, financial institutions
and agents
Borrowings from IFC - - 1,240,500,000

Borrowings from CBQ 20,000,000 1,678,000,000 661,600,000
Borrowings from Mashreq bank PSC-USD - - 827,000,000
Borrowings from GCPF 20,000,000 1,678,000,000 1,654,000,000
Borrowings from RAK Bank ,UAE 16,500,000 1,384,350,000 1,240,500,000
Borrowings from Bank Muscat, Oman - - 661,600,000
Borrowings from FGB, UAE 15,000,000 1,258,500,000 827,000,000
Borrowings from ADB 10,000,000 839,000,000 289,450,000
Borrowings from NBM Bank, Nepal 5,000,000 419,500,000 -
Borrowings from SCB, Singapore 25,000,000 2,097,500,000 -
Borrowings from EIB, UAE 16,000,000 1,342,400,000 -
Borrowings from FM HDFC Bank,Hong Kong - - 413,500,000
Borrowings from Head Office 15,000,000 1,258,500,000 246,446,000
142,500,000 11,955,750,000 8,061,596,000
8 Deposit accounts
Current accounts 8.1 77,927 6,538,058 8,063,742

Fixed deposits 406,360 34,093,601 27,215,079
484,287 40,631,659 35,278,821
8.1 Current deposits
Current accounts 59,054 4,954,608 4,153,819

Margin against L/C - - 3,909,923
Sundry creditors 18,873 1,583,450 -
77,927 6,538,058 8,063,742
9 Other liabilities
Accrued interest on borrowing .O/Banks (Call) 234,097 19,640,758 207,176

Interest payable-CBQ Loan 149,655 12,556,060 8,014,182
Accrued interest on borrowing from NBM Bank, Nepal 54,250 4,551,575 -
Interest payable on RAK Bank, UAE 105,304 8,834,995 7,688,983
Interest payable on FGB, UAE 178,723 14,994,897 3,818,628
Interest payable on ADB 118,809 9,968,047 1,600,100
Accrued interest on borrowing from EIB, UAE 192,018 16,110,291 -
Accrued interest on borrowing from SCB, Singapore 325,307 27,293,236 -
Accrued interest on borrowing from GCPF - - 769,610
Interest payable on Bank Muscat, Oman - - 2,920,259
Interest payable-IFC loan - - 1,757,375
Accrued interest on borrowing FM-HDFC Bank, Hong Kong - - 6,195,033
Interest Suspense 391,070 32,810,757 -
Provision for unclassified loans and advances 9.1 1,456,785 117,450,000 81,250,000
Provision for off-balance sheet exposures 9.2 21,291 1,766,711 2,001,995
3,227,309 265,977,326 116,223,341
9.1 Provision for unclassified loans and advances
Balance as at 1 January 1,025,319 81,250,000 63,272,821

Provision made during the year 431,466 36,200,000 17,977,179
1,456,785 117,450,000 81,250,000
Adjustments made during the year - - -
Balance as at 31 December 1,456,785 117,450,000 81,250,000
9.2 Other provisions
Provision for off-balance sheet exposures

Balance as at 1 January 24,208 2,001,995 2,102,648
Add: Provision made during the year - - -
24,208 2,001,995 2,102,648
Less: Adjustments made during the year (2,918) (235,284) (100,652)
Balance as at 31 December 21,291 1,766,711 2,001,995
111
2018 2017
Note USD Taka Taka
10 Retained earnings
Balance as at 1 January 4,197,625 350,687,706 178,196,055

Add/less: foreign currency translation gain for last year - 7,264,328 17,128,953
4,197,625 357,952,034 195,325,008
Addition during the year 2,053,651 171,323,967 155,362,697
6,251,276 529,276,000 350,687,706
Add/less: foreign exchange gain (loss) - - -
Balance as at 31 December 6,251,276 529,276,000 350,687,706
11 Interest income on investment
Interest income from loans and advances 2,637,614 220,267,367 130,111,780

Interest on overdraft 118 9,829 47,455
Interest income from bill purchased and discounted 5,161,369 431,026,422 317,132,599
Interest income calls & placement (FCY) 262,235 21,899,262 895,326
8,061,335 673,202,880 448,187,159
12 Interest paid on deposits and borrowings etc.
Interest on FDR 35 2,898 2,184

Interest expense on mashreq bank loan 171,099 14,288,517 16,858,486
Interest expenses -GCPE loan 1,187,458 99,164,755 65,135,550
Interest on IFC loan 463,017 38,666,637 54,030,392
Interest on CBQ loan 721,498 60,252,403 42,233,009
Interest expenses -ICIC bank 155,123 12,954,324 -
Interest expenses -RAK bank,UAE 919,401 76,779,269 36,260,651
Interest expenses -Bank Muscat, Oman 101,554 8,480,808 22,720,091
Interest expenses FGB, UAE 263,971 22,044,233 29,757,481
Interest expenses ADB 360,398 30,096,860 8,312,692
Interest expense on -HDFC BANK, HONG 8,375 699,421 6,024,906
Interest expense on -SCB, Singapore 651,772 54,429,512 -
Interest expense on -EIB, UAE 340,651 28,447,807 -
Interest expense on -NMB Bank 54,250 4,530,423 -
Interest on calls and placement 583,448 48,723,817 18,121,334
5,982,051 499,561,684 299,456,776
13 Commission, exchange & brokerage
Commission and other charges 400,370 33,434,928 28,552,410

400,370 33,434,928 28,552,410
13.1 Other operating income
Other income- SWIFT 27,820 2,323,251 603,217

Miscellaneous income 26,440 2,208,008 1,371,760
Rebate from trade payments 87,440 7,302,123 5,008,273
141,700 11,833,382 6,983,250
Basic salary 25,173 2,102,214 1,981,007

Allowances 21,518 1,796,939 1,640,245
Provident fund contribution 2,429 202,822 198,522
Bonus 4,064 339,415 528,367
53,184 4,441,390 4,348,142
Rent, rates and taxes 10,735 896,478 853,088

Insurance 222 18,531 19,645
Electricity and lighting 1,732 144,606 142,741
12,688 1,059,615 1,015,474
112
2018 2017
Note USD Taka Taka
Postage 200 16,684 13,601

Internet service 3,114 260,078 281,268
SWIFT charges 6,553 547,280 476,149
FC Nostro charges 2,960 247,190 171,072
Telephone 408 34,050 31,193
13,235 1,105,281 973,283
Office and printing stationery 1,537 128,332 101,586

1,537 128,332 101,586
Depreciation on own assets:

Furniture and fixtures 2,585 215,907 218,278
Electrical appliances 575 47,998 114,282
3,160 263,905 332,560
19 Other expenses
Entertainment 672 56,095 28,876

Management fee GCPF 28,575 2,386,283 1,759,214
Pay Protection 193 16,090 -
Expense-IFC portfolio monitoring expense - - 462,467
Travelling expenses and allowance 49 4,111 11,301
House maintenance (Executive ) 2,281 190,472 186,746
Repair, maintenance and utilities 732 61,120 39,094
Books and periodicals 71 5,949 5,271
Conveyance 560 46,805 38,390
Miscellaneous 22,217 1,855,374 1,724,416
55,350 4,622,300 4,255,775
113
Annexure-I
Southeast Bank Limited and its subsidiaries
Geographical and Business Segment
I) Geographical Segment
Inside Bangladesh Outside Bangladesh
SEBL Off Shore SEBL Capital Southeast Financial Southeast Financial Southeast Exchange
Particulars Total
(Conventional & Banking Unit Services Limited Services (UK) Ltd Services (Australia) Pty Company (South Africa)
Islamic Banking) Ltd Pty Ltd
Taka Taka Taka Taka Taka Taka Taka
Income 14,504,704,388 218,909,506 113,002,743 23,886,752 - 101,413,142 14,961,916,531
Less: Inter segmental income/expense 4,107,071 (4,107,071) -
Total Income 14,500,597,317 218,909,506 117,109,814 23,886,752 - 101,413,142 14,961,916,531
Operating profit (profit before unallocated expenses and tax) 14,500,597,317 218,909,506 117,109,814 23,886,752 - 101,413,142 14,961,916,531
Allocated expenses (5,013,888,340) (11,620,824) (88,921,410) (23,520,884) (890,886) (40,079,066) (5,178,921,410)
Provision against loans & advances and others (5,078,372,191) (35,964,716) - (5,114,336,907)
Profit (loss) before tax 4,408,336,786 171,323,967 28,188,404 365,868 (890,886) 61,334,075 4,668,658,214
Provision for tax including deferred tax (2,165,000,000) (13,316,862) (17,132,508) (2,195,449,370)
Net profit 2,243,336,786 171,323,967 14,871,542 365,868 (890,886) 44,201,567 2,473,208,844
Segment assets 362,707,676,157 12,791,634,985 5,876,791,255 26,894,933 1,381,793 171,299,757 381,575,678,880
Segment liabilities 362,707,676,157 12,791,634,985 5,876,791,255 26,894,933 1,381,793 171,299,757 381,575,678,880
II) Business Segment

Inside Bangladesh Outside Bangladesh
Conventional Islamic SEBL Capital Southeast Financial Southeast Financial Southeast Exchange
Particulars Total
Banking including Banking Services Limited Services (UK) Ltd Services (Australia) Pty Company (South Africa)
OBU Ltd Pty Ltd
Taka Taka Taka Taka Taka Taka Taka
Income 13,838,479,821 885,134,073 113,002,743 23,886,752 - 101,413,142 14,961,916,531
Less: Inter segmental income 4,107,071 - (4,107,071) - - - -
Total income 13,834,372,750 885,134,073 117,109,814 23,886,752 - 101,413,142 14,961,916,531
Operating profit (profit before unallocated expenses and tax) 13,834,372,750 885,134,073 117,109,814 23,886,752 - 101,413,142 14,961,916,531
Allocated expenses (4,854,188,480) (171,320,683) (88,921,410) (23,520,884) (890,886) (40,079,066) (5,178,921,410)
Provision against loans & advances and others (6,000,010,111) 885,673,204 - - - - (5,114,336,907)
Profit (loss) before tax 2,980,174,159 1,599,486,594 28,188,404 365,868 (890,886) 61,334,075 4,668,658,214
Provision for tax including deferred tax (2,165,000,000) - (13,316,862) - - (17,132,508) (2,195,449,370)
Net profit 815,174,159 1,599,486,594 14,871,542 365,868 (890,886) 44,201,567 2,473,208,844
Segment assets 353,320,906,124 22,178,405,018 5,876,791,255 26,894,933 1,381,793 171,299,757 381,575,678,880
Segment liabilities 353,320,906,124 22,178,405,018 5,876,791,255 26,894,933 1,381,793 171,299,757 381,575,678,880
114

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Southeast Bank Limited

Auditor's Report and Consolidated & Separate

Independent Auditor's Report

To the Shareholders of Southeast Bank Limited

Report on the Audit of the Consolidated and Separate Financial Statements

Basis for Opinion

Key Audit Matters

Key audit matters: Risks: Our responses:

Our substantive Procedures in

. In the tripartite meeting dated

Our Results: Finally assessed the

Key Audit Matters: Risks: Our Responses:

Our Result: Based on the results of

Key Audit Matters: Risks: Our responses:

Refer to note no 15, 15.3 and 15.4 to

Key Audit Matters: Risks: Our Responses:

being materially misstated. control effect on Processing of We obtained management's

We reviewed the System of Internal

We checked standards over systetns

Our results: We considered the user

appropriate in the circumstances.

related disclosures made by management'

. Conclude on the appropriateness of management's use of the going concern basis of

Office : AHSANDELL, 2/A, Mymensingh Rood (2nd Floor) , Shohbog, Dhoko-1000,

identify during our audit.

outweigh the public interest benefits of such communication'

Report on other Legat and Regulatory Requirements

basis stated under the Auditor's

of the Bank have

in our opinion, doubtful of

and found satisfactory;

and spent over 8,200 person hours; and

Asset Ratio (cRAR) as required by Bangladesh Bank has been

Shohbog, Dhoko-1000, Bonglodesh

LIABILITIES AND CAPITAL

Other liabilities 20 32,102,455,720 26,044,632,850

OFF.BALANCE SHEET ITEMS

The annexed notes 1 to 71 form an of these financial statements.

Signed in terms of our separate repoft of even date

lnterest income/profit on investments 32 23,977,837.107 17,400,550,075

Salaries and allowances 2,026,52',t,807 1,880,629,864

Net profit after taxation 2,473,208,84 1,168,628,78'l

Net profit after taxation attributable to:

Earnings per share (par value 64 2.35

The annexed notes 1 to 71 form pad of these financial statements.

Interest receipts in cash 28,773,552,446 22,799,565,274

Increase (decrease) in operating assets and liabilities

B. Cash flows from investing activities:

Proceeds from sale of securities 54,654,139,635 85,715,949,901

C. Cash flows from financing activities:

Receipts from issue of loan capital & debt security 5,000,000,000 -

Cash and cash equivalents at end of the period represents

Revaluation Other Translation Retained Non-controlling Total equity

Surplus/deficit on account of revaluation of properties - - - - - - - - -

Net profit for the period - - - - - 2,473,189,135 2,473,189,135 19,709 2,473,208,844

LIABILITIES AND CAPITAL

Other liabilities 21 31,765,504,056 25,732,763,716

OFF-BALANCE SHEET ITEMS

The annexed notes 1 to 71form an integra of these financial statements.

Signed in terms of our separate report of even date

lnterest income/profit on investments 33 23,951,689,857 17,384,904,816

Net interest income/net profit on investments