Mercantile Bank Limited is committed towards excellence in service with efficiency, accuracy and proficiency and extended its arms towards meeting its social obligations. We are committed to our different stakeholders. We are also respectful to our regulators and committed to maintain integrity, strict compliance and meeting our goals with a global vision.

Fluctuation in domestic economy as well as due to increase in price of different commodities specially food grains and oil in the international market, business community could not perform properly which affected the Banking industry. In spite of that, Mercantile Bank made a reasonable growth over the previous year.

In the period under review a substantial growth has been achieved in the areas of deposits, advances and revenue. Gross revenue grew by 20.07% to reach at BDT 5,560.95 million in 2007. Interest Income increased by 27.22% and reached at BDT 4,450.90 million whereas interest expenses grew by 18.66% to reach at BDT 3,159.30 during the period under review. As a result, Net Interest Income stood at BDT 1,291.60 million in 2007, registering a growth of 54.48% over the previous year. Due to excellent growth in Net Interest Income, the Bank posted operating revenue of BDT 1,385.15 million in 2007 registering a growth of 17.51% over the previous year.

The Bank mobilized total resources of BDT 39,348.00 million in 2007 as against BDT 33,332.65 million in 2006. The total loans and advances stood at BDT 31,877.86 million registering a growth of 18.76% over the previous year. The FX business of the Bank in 2007 slowed down. Imports stood at BDT 40,380.10 million in 2007 as against BDT 42,442.80 million in 2006. Exports stood at BDT 32,670.10 million in 2007 as against BDT 34,592.10 million in 2006. Remittance growth of the Bank during the period was 17.44%.

Net Interest Margin (NIM) stood at 3.52% in 2007 as against 2.73% in 2006. Net Interest Margin (NIM) increased because of higher spread resulted from the lower deposit rate and higher yield on risk assets.

Return on Assets (ROA) stood at 1.32% in 2007 as against 1.50% in 2006. Return on Equity (ROE) was 18.19% in 2007 against 21.48% in 2006. The Earning Per Share (EPS) stood at around BDT 36.06 in 2007 as against BDT 32.97 in 2006. The Capital Adequacy Ratio (CAR) stood at 11.67% in 2007 as against 10.68% in 2006 reflecting a strong capital base of the Bank.

Customers are our first priority and main driving force. Our customers come from all walks of life. They are businessmen, entrepreneurs, professionals, manufacturers, public servants, builders, small traders. Our efficient team maintain relationship with the customers and serve as per their requirement. We have already introduced diversified tailored products and services to cater the banking needs of our customers.

We believe that human resource development through continuous and need based training is the most crucial factor for organizational growth. To equip our employees, with corporate values, operational skills and proper motivation to serve our customers better in a modernized work environment, we always give emphasis on Human Resources Management and Development. Our team consists of experienced efficient personnel together with fresh graduates who are willing to take challenges to build up their career. We continuously upgrade our professionals by enriching knowledge and skill and motivate them to provide excellent customer service.

Our clients are enjoying On-line Banking facilities in all the branches. We have introduced SMS Banking for our customers. We have a plan for more cost effective and appropriate technology solutions to meet the challenges in global market.

We have responsibility towards the society. We share the sorrow of our surroundings. We have donated BDT 5.00 million for the flood victims and BDT 5.40 million for the SIDR affected people. Mercantile Bank Limited Foundation a philanthropic arm of our Bank help the needy people and institutions in the society.

Mercantile Bank Limited is moving towards its goals for implementing BASEL-II as per guidance of Bangladesh Bank. The strength of the Bank in respect of capital adequacy is satisfactory.

We have made a reasonable progress in SME financing. We are one of the few banks in private sector who have financed in the agricultural sector as commitment to serve the poor farmers.

We are proud that we are one of the largest taxpayer in the country and therefore, an important source of revenue for the Govt. of Bangladesh. During the year we have made a provision of BDT 658.34 million for the National Exchequer.

We are aware of our commitment to offer excellence in Banking to our customers, shareholders and other stakeholders. What we need is inspiration that our stakeholders have always been giving us continuously. Our concerted and motivated team spirit is the stimulant to our success.

Banking industry in Bangladesh is now on the right track. The Banks are contributing much than the previous years for the growth and development of the country. Credit for such contributions by the industry goes to Bangladesh Bank. The Banking industry is much organized as well as compliant because of strong vigilance and supervision of Bangladesh Bank.

On behalf of the Management of the Bank, I express my gratitude and heartiest thanks to the Governor and other officials of Bangladesh Bank, other prudential regulators, members of the Board of Directors, clients and my colleagues for their policy guidance, advice, concern and cooperation.

We believe that we have got a sincere, hardworking team who can make the dream true by meeting financial and operational objectives of the Bank as well as the needs of our customers and people of the country.

Dewan Mujibur Rahman