Citibank, N.A. (Bangladesh Branches) Report and financial ......As per Banking Regulation and Policy...

Notes to the financial statementsas at and for the year ended 31 December 2015

Citibank, N.A. (Bangladesh Branches)

Report and financial Statements as at andfor the year ended 31 December 2019

INDEPENDENT AUDITOR’S REPORT TO THE MANAGEMENT OFCITIBANK, N.A.

BANGLADESH BRANCHES

1 Status of the Bank1.1 Legal form of the bank

Citibank, N.A. Bangladesh Branches ( "the Bank") commenced its banking operations in Dhaka, Bangladesh from 24

June 1995 after obtaining licence from Bangladesh Bank dated 26 January 1995. Citigroup Inc. (formed from the

merger of Citicorp Inc. and Travelers Group Inc. on 8 October 1998) a holding company under the law of United

States of America, is the sole shareholder of Citibank, N.A. The Offshore Banking Unit (OBU) started its operations

on 26 April 2006.

1.2 Nature of business Citibank N.A. started its operations in Bangladesh in 1987, with the opening of a representative office. The Bank

opened its first full-service branch in Dhaka in 1995. The Bank now has three branches, these are in Motijheel,

Gulshan and Chittagong and two EPZ service counters of its offshore banking units with 142 employees serving

corporate customers. Since 1987, Citi’s operations encompass primarily on corporate and commercial banking

services under the Institutional Clients Group (ICG). In Bangladesh, Citi provides a comprehensive range of financial

services including treasury management, transaction services, foreign exchange and structured finance to

corporate clients, governments and financial institutions. In 2008 the Bank started to offer Direct Custody and

Clearing (DCC) services to its offshore clients.

2 Basis of preparation2.1 Combined financial statements for DBU and OBU Pursuant to Bangladesh Bank circular BRPD Circular No: 02, dated 25 February 2019, these financial statements for

the year ended 31 December 2019 comprise the operations of both the Domestic Banking Unit (DBU) and the OBU,

together referred to as "the Bank".

In previous years, separate financial statements were prepared for DBU and for OBU. In the financial statements for

the year ended 31 December 2019, prior year comparatives have been rearranged to conform to current year's

presentation.

2.2 Statement of compliance The Financial Reporting Act 2015 (FRA) was enacted in 2015. Under the FRA, the Financial Reporting Council (FRC)

has been formed in 2017 and is yet to issue Financial Reporting Standards (FRS) for public interest entities such as

banks. The Bank Companies Act 1991 has been amended to require banks to prepare their financial statements under

such financial reporting standards. As FRC is yet to issue any financial reporting standards as per the provisions of

the FRA (section 69) and hence International Financial Reporting Standards (IFRS) as adopted by the Institute of

Chartered Accountants of Bangladesh (ICAB) are still applicable.

Accordingly, the financial statements of the Bank are prepared in accordance with International Financial Reporting

Standards (IFRS) and the requirements of the Bank Company (amendment) Act, 2013, the rules and regulations

issued by Bangladesh Bank and the Companies Act 1994. In case any requirement of the Bank Company

(amendment) Act, 2013, and provisions and circulars issued by Bangladesh Bank differ with those of IFRS, the

requirements of the Bank Company (amendment) Act, 2013, and provisions and circulars issued by Bangladesh Bank

shall prevail. Material departures from the requirements of IFRS are as follows:

i) Investment in equity instruments IFRS: As per requirements of IFRS 9 classification and measurement of investment in shares will depend on how

these instruments are managed (i.e. 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”.

Bangladesh Bank: As per Banking Regulation and Policy Department (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; otherwise investments are recognised at costs. Citi recognizes investment in shares and

securities at cost basis.

ii) Subsequent measurement of Government securities IFRS: Debt instruments include both bonds and bills. As per requirements of IFRS 9 Financial Instruments, bonds

can be categorised as "Amortised Cost (AC)", "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 while 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: As per DOS Circular no. 05 (26 May 2008) and subsequent clarification in DOS Circular no 05

(28 January 2009), Government securities/bills are classified either into Held for Trading (HFT) or Held to Maturity

(HTM). 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 recognised 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 amortisation of discount are recognised in the profit

and loss account. HTM securities which have not matured as at the balance sheet date are amortised at the year end

and gains or losses on amortisation are recognised in other reserve as a part of equity.

iii) 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), the arrangement is treated as a loan

and the underlying asset continues to be recognised at amortised cost in the entity’s financial statements. 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 DOS Circular letter no. 6 (15 July 2010) and subsequent clarification in DOS circular no.

02 (23 January 2013), 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 transaction and the financial asset is derecognised in the seller’s book and

recognised in the buyer’s book.

However, as per DMD circular letter no. 7 dated (29 July 2012), non primary dealer banks are eligible to participate in the Assured Liquidity Support (ALS) programme, whereby such banks may enter collateralised repo arrangements with Bangladesh Bank. Here the selling bank accounts for the arrangement as a loan, thereby

continuing to recognise the asset.

iv) Provisions on loans and advances IFRS: As per IFRS 9 an entity shall recognise an impairment allowance on loans and advances based on expected

credit losses (ECL). At each reporting date, an entity shall measure the impairment allowance for loans and

advances at an amount equal to the lifetime ECL 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 equivalent to 12 months 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. 07 (21 June 2018), BRPD circular No. 13 (18 October 2018), BRPD

circular No. 15 (27 September 2017), BRPD circular No. 16 (18 November 2014), BRPD circular No.14 (23 September

2012), BRPD circular No. 19 (27 December 2012) and BRPD circular No. 05 (29 May 2013) a general provision at

0.25% to 5% under different categories of unclassified loans (good/standard and SMA 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 time past due. Again

as per BRPD circular no. 10 (18 September 2007) and BRPD circular no. 14 (23 September 2012) and BRPD circular

no. 07 (21 June 2018), a general provision at 1% is required to be provided for all off-balance sheet exposures except

on 'bills for collection' and 'Guarantees' where the counter guarantees have been issued by Multilateral

Development Bank (MDB)/International Bank having BB rating grade '1' equivalent outlined in the Guidelines on Risk

Based Capital Adequacy (Revised Regulatory Capital Framework for banks in line with Basel III). Such provision

policies are not specifically in line with those prescribed by IFRS 9.

v) 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 using the effective interest rate (EIR) method whereby the EIR is applied on the gross carrying amount over the term of the loan. Once a loan subsequntly become credit-impaired, the entity shall apply the EIR to the amortised cost of these loans and advances.

Bangladesh Bank: In accordance with BRPD circular no. 14 dated 23 September 2012, interest accrued on sub-standard (SS) and Doubtful (DF) loans are credited to "interest suspense account" included in "other liabilities" instead of income account. Interest from loans and advances ceases to be accrued when they are classified as Bad and loss category.

vi) Other comprehensive income IFRS: As per IAS 1 Other Comprehensive Income (OCI) is a component of financial statements or the elements of

Other Comprehensive Income are to be included in a single Other Comprehensive Income Statement. Bangladesh Bank: Bangladesh Bank has issued templates for financial statements through BRPD circular no. 14

dated 25 June 2003 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 (OCI) statement. As such the Bank does not prepare an OCI statement. However

elements of OCI, if any, are shown in the statements of changes in equity.

vii) Financial instruments – presentation and disclosure IIn several cases Bangladesh Bank guidelines categorise, recognise, measure and present financial instruments

differently from those prescribed in IFRS 9. As such some disclosure and presentation requirements of IFRS 7 and

IAS 32 cannot be made in the financial statements.

viii) Financial guarantees IFRS: As per IFRS 9, financial guarantees are contracts that require the issuer to make specified payments to reimburse the holder for a loss it incurs because a specified debtors fails to make payment when due in accordance with the original or modified terms of a debt instrument. Financial guarantee liabilities are recognised initially at their fair value plus transaction costs that are directly attributable to the issue of the financial liabilities. The financial guarantee liability is subsequently measured at the higher of the amount of loss allowance for expected credit losses as per impairment requirement and the amount initially recognised less, income recognised in accordance with the principles of IFRS 15. Financial guarantees are included within other liabilities.

Bangladesh Bank: As per BRPD circular no. 07 dated 21 June 2018, financial guarantees such as letter of credit, letter of guarantee will be treated as off-balance sheet items. No liability is recognised for the guarantee except the cash margin.

ix) Cash and cash equivalent 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, Bangladesh Bank bills and prize bond are not shown as cash and cash equivalents in the balance sheet. Money at call and on short notice are presented on the face of the balance sheet while treasury bills, Bangladesh Bank bills, prize bonds are shown as investments. However, in the cash flow statement, money at call and short notice and prize bonds are shown as cash and cash equivalents beside cash in hand, balance with Bangladesh Bank and other banks.

x) Non banking asset IFRS: No indication of non banking asset is found in any IFRS.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, there must exist a face item named non

banking asset. xi) Cash flow statement

IFRS: Cash flow statement can be prepared 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 circular no. 14 dated 25 June 2003, cash flow is the mixture of direct and indirect

methods

xii) Balance with Bangladesh Bank: 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.

xiii) Off-balance sheet items IFRS: There is no concept of off-balance sheet items in any IFRS; hence there is no requirement for disclosure of

off-balance sheet items.

Bangladesh Bank: As per BRPD circular no. 14 dated 25 June 2003, off balance sheet items (e.g. L/C, L/G, etc.)

must be disclosed separately on the face of balance sheet.

31 December 2019

Taka Taka

31 December 2018

Notes

S. H. Aslam HabibChief Financial Officer, Bangladesh

As per our report of same date.

Dhaka, 26 Feb, 2020

Cash flow statement for the year ended 31 December

2019 2018

Taka Taka

N. RajashekaranManaging Director and

Citi Country Officer, Bangladesh

Profit and Loss Account for the year ended 31 December Notes to the financial statementsas at and for the year ended 31 December 2019

S. H. Aslam HabibChief Financial Officer, Bangladesh

As per our report of same date.

Dhaka, 26 Feb, 2020

N. RajashekaranManaging Director and


2019 2018

Taka TakaNotes

Interest income 18 1,774,640,492 1,583,552,438Interest paid on deposits and borrowings 19 (299,581,894) (302,546,765)Net interest income 1,475,058,598 1,281,005,673Income from investments 20 452,763,687 399,270,618Commission, exchange and brokerage 21 936,606,086 1,250,488,284Other operating income 22 (9,780,391) 17,062,042Total operating income 2,854,647,980 2,947,826,617

Salaries and allowances 23 (526,616,221) (507,439,377)Rent, taxes, insurance, electricity, etc. (226,245,529) (173,098,496)Legal expenses (2,352,828) (652,180)Postage, stamps, telecommunication, etc. (26,804,673) (25,386,504)Stationery, printing, advertisement, etc. (15,254,879) (29,147,035)Citi Country Officer's salary and allowances (24,715,590) (23,836,116)Auditors' fees (900,000) (900,000)Depreciation and repairs of bank's assets 24 (81,740,533) (78,186,429)Other expenses 25 (169,897,620) (198,560,835)Total operating expenses (1,074,527,873) (1,037,206,972)Profit before provisions 1,780,120,107 1,910,619,645 Provision for loans and advances: Specific provision for classified loans and advances 12.1 (70,500) (89,500)General provision for unclassified loans andadvances 12.1 9,785,060 (2,05,83,870)Provision for off balance sheet exposures 12.2 (41,403,569) (5,75,68,356)Provision for diminution in value of investments - -Provision for nostro accounts - -Total provisions 51,118,129 (78,241,726)Total profit before income tax 1,831,238,236 1,832,377,919Provision for income tax: Current tax 26 (743,233,724) (774,451,580)Deferred tax 26 (51,184,960) (11,516,641) (794,418,684) (785,968,221)Net profit after tax 1,036,819,552 1,046,409,698

Appropriations Profit remitted to Head Office - -

The annexed notes 1 to 35 and annexures A to J form an integral part of these financial statements.

Property and assets

Cash (including foreign currencies)Cash in hand Balances with Bangladesh Bank and its agent bank(s)

Balance with other banks and financial institutions Inside BangladeshOutside Bangladesh

Money at call and short notice

InvestmentsGovernment securitiesReverse Repo with Bangladesh BankOther

Loans and advancesLoans, cash credits, overdraftsBills purchased and discounted

Fixed assets including premises,furniture and fixtures

Other assets

Non banking assets

Total assets

Liabilities and capital

Liabilities

Borrowings from other banks, financial institutions and agents

Deposits and other accounts Current account and other accounts, etc. Bills payable Savings deposits Fixed deposits Bearer certificates of deposits Other deposits

Other liabilities

Total liabilities

4

5

6

7

8

9

10

11

12

187,451,538 10,078,802,356

10,266,253,894

290,239,156 15,803,876,163 16,094,115,319

-

11,214,345,971 -

6,000,000 11,220,345,971

15,004,423,531 3,467,718,951

18,472,142,482

120,953,357

1,939,113,540

- 58,112,924,563

3,296,355,814

34,129,044,529 1,261,919,524

358,561,8592,907,170,771

- -

38,656,696,683

3,610,053,570

45,563,106,067

137,927,760 9,480,760,009

9,618,687,769

707,005,365 9,464,371,953 10,171,377,318

-

8,281,925,575 -

6,000,000 8,287,925,575

18,520,243,035 4,096,052,879 22,616,295,914

151,668,199

1,566,871,808

- 52,412,826,583

6,531,578,960

26,603,125,448 1,627,534,148 207,530,935

3,120,373,829 - -

31,558,564,360

2,927,720,332

41,017,863,652

Statement of Changes in Equity for the year ended 31 December

Particulars

Balance as at 1 January 2018 Net profit for the year

Unrealised surplus on revaluation of HFT securities (net of deferred tax liabilities) Actuarial gain/(loss)

Profit remitted to Head Office Exchange difference Balance as at 31 December 2018 Net profit for the year

Unrealised surplus on revaluation of HFT securities

(net of deferred tax liabilities) Actuarial gain/(loss)

Profit remitted to Head Office Exchange difference

Balance as at 31 December 2019

4,771,628,235

-

-

-

-

69,237,652

4,840,865,887

-

-

-

-

57,698,044

4,898,563,931

(111,411,880)

-

11,914,084

(23,384,465)

-

-

(122,882,261)

-

(11,175,598)

66,073,280

-

-

(67,984,579)

5,637,659,936

1,046,409,698

-

-

-

(7,090,329)

6,676,979,305

1,036,819,552

-

-

-

5,440,287

7,719,239,144

10,297,876,291

1,046,409,698

11,914,084

(23,384,465)

-

62,147,323

11,394,962,931

1,036,819,552

(11,175,598)

66,073,280

-

63,138,331

12,549,818,495

Fund deposited with

Bangladesh Bank Other

reserveProfit and

loss account Total

Taka Taka Taka Taka

Citibank, N.A.

8 Gulshan Avenue, Gulshan - 1, Dhaka 1212, Bangladesh

A company incorporated in the USA with limited liabilities.

© 2020 Citigroup Inc. All rights reserved. Citi, Citi and arc Design are service and service marks of Citigroup Inc. or its affiliates and are used and registered throughout the world.

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Equity Fund deposited with Bangladesh Bank as capital 13.2 4,898,563,931 4,840,865,887

Other reserve 14 (67,984,579) (122,882,261)

Profit and loss account 15 7,719,239,144 6,676,979,305

Total equity 12,549,818,496 11,394,962,931

Total liabilities and equity 58,112,924,563 52,412,826,583

Off-balance sheet items

Contingent liabilities Acceptances and endorsements 16.1 2,949,084,022 1,105,095,302

Letters of guarantee 16.2 2,194,675,129 3,330,556,569

Irrevocable letters of credit 16.3 8,924,771,538 6,938,522,982

Bills for collection 16.4 1,248,073,897 1,367,912,567

Other contingent liabilities - -

15,316,604,586 12,742,087,420

Other commitments 16.5 Documentary credits and short term trade - related transactions 663,456,149 460,207,623

Forward assets purchased and forward deposits placed 2,827,750,430 4,766,715,415

Undrawn note issuance and revolving underwriting facilities - -

Undrawn formal standby facilities, credit lines and other commitments - 585,054,412

3,491,206,579 5,811,977,450 Others 16.6 Value of travelers' cheques on hand - -

Value of unprocessed cheques - -

Value of Bangladesh Sanchaypatra on hand 255,925,000 328,925,000

Value of Bangladesh Bank USD bond on hand 225,027,450 222,376,950

480,952,450 551,301,950

Total off-balance sheet items including contingent liabilities 19,288,763,615 19,105,366,820

The annexed notes 1 to 35 and annexures A to J form an integral part of these financial statements.

Cash flows from operating activitiesInterest receipts in cashInterest paymentsDividend receiptsFee and commission receipts in cash Recoveries of loans previously written offCash payments to employeesCash payment to suppliersIncome taxes paidIncome from trading securityReceipts from other operating activitiesPayment for other operating activitiesOperating profit before changes in operating assets and liabilities

Increase/(decrease) in operating assets and liabilitiesStatutory depositsPurchase/Sale of trading securitiesLoans and advances to other banksLoans and advances to customersOther assetsDeposits from other banksDeposits from customersBorrowing from other banks and financial institutionsTrading liabilitiesOther liabilities

Net cash flow from operating activities

Cash flows from investing activitiesProceeds from sale of securitiesPayment for purchase of securitiesPurchase of fixed assetsProceeds from sale of assetsNet cash flow from investing activities

Cash flows from financing activitiesProfit remitted to head officeFund received from head office as capital injectionEffect of change in foreign exchange rate

Net cash flow from financing activities

Net increase/(decrease) in cash and cash equivalents (A+B+C)

Cash and cash equivalents at the beginning of the year

Cash and cash equivalents at the end of the year (D+E) (note 28)

A)

B)

C)

D)

E)

F)

1,826,258,658 (295,501,051)

7,500,000 936,606,086

- (564,899,234) (126,967,794)

(826,269,469) 522,394,030

49,500 (172,986,853)1,306,183,874

-

(2,758,802,606)-

4,093,600,990 61,266,30215,644,842

7,082,487,481(3,235,223,146)

- 842,855,116

6,718,892,584

- -

(38,108,998)-

(38,108,998)

- -

63,138,331

63,138,331

6,743,921,916

203,591,76,907

27,103,098,823

1,516,274,299 (303,458,521)

7,500,000 1,250,488,283

- (530,742,999) (187,764,659)(648,886,519) 438,066,083

16,287,771 (197,213,263)

1,360,550,475

- ( 1,092,497,794)

- (2,207,523,484)

(441,589,384)(1,043,950,501)

6,720,119,629 1,688,570,070

- 250,964,665

5,737,185,576

- -

(31,183,375) 2,687,700

(28,495,675)

- -

91,187,567

91,187,567

5,799,877,468

14,559,299,439

20,359,176,907

Citibank, N.A. Bangladesh Branches Balance Sheet

In BDT

Rahman Rahman Huq

Chartered Accountants

Rahman Rahman Huq

Chartered Accountants

OpinionWe have audited the financial statements of Citibank, N.A. Bangladesh Branches (the “Bank”) which comprise the balance sheet as at 31 December 2019 and the profit and loss account, statement of changes in equity and cash flow statement for the year then ended, and notes to the financial statements, including a summary of significant accounting policies.In our opinion, the accompanying financial statements give a true and fair view of the financial position of the Bank as at 31 December 2019, and of its financial performance and its cash flows for the year then ended in accordance with International Financial Reporting Standards (IFRSs) as explained in note 2.2.

Basis for opinionWe conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditors’ Responsibilities for the Audit of the Financial Statements section of our report. We are independent of the Bank in accordance with the ethical requirement that are relevant to our audit of the financial statements in Bangladesh and we have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the Institute of Chartered Accountants of Bangladesh (ICAB) Bye Laws. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Responsibilities of Management and Those Charged with Governance for the Financial Statements and Internal ControlsManagement is responsible for the preparation of the financial statements that give a true and fair view in accordance with IFRSs as explained in note 2.2, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. The Bank Company Act, 1991 and the Bangladesh Bank Regulations require the Management to ensure effective internal audit, internal control and risk management functions of the Bank. The Management is also required to make a self-assessment on the effectiveness of anti-fraud internal controls and report to Bangladesh Bank on instances of fraud and forgeries.

In preparing the financial statements, management is responsible for assessing the Bank’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Bank or to cease operations or has no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Bank’s financial reporting process.

Auditor’s Responsibilities for the Audit of the Financial StatementsOur objectives are to obtain reasonable assurance about whether the 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 financial statements.

As part of an audit in accordance with ISAs, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:

- Identify and assess the risks of material misstatement of the 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.- 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 cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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 control that we identify during our audit.

Report on other Legal and Regulatory RequirementsIn accordance with the Companies Act, 1994, the Bank Company Act, 1991 and the rules and regulations issued by Bangladesh Bank, we also report that:i) we have obtained all the information and explanations which to the best of our knowledge and belief were necessary for the purpose of our audit and made due verification thereof;ii) to the extent noted during the course of our audit work performed on the basis stated under the Auditor’s Responsibility section in forming the above opinion on the financial statements of the Bank and considering the reports of the Management to Bangladesh Bank on anti-fraud internal controls and instances of fraud and forgeries as stated under the Management’s Responsibility for the financial statements and internal control:(a) internal audit, internal control and risk management arrangements of the Bank as disclosed in the financial statements appeared to be materially adequate; and(b) nothing has come to our attention regarding material instances of forgery or irregularity or administrative error and exception or anything detrimental committed by employees of the Bank;iii) in our opinion, proper books of accounts as required by law have been kept by the Bank and the Bank so far as it appeared from our examination of those books;iv) the records and statements submitted by the branches have been properly maintained and consolidated in the financial statements;v) The balance sheet and profit and loss account together with the annexed notes dealt with by the report are in agreement with the books of account;vi) the financial statements of the Bank have been drawn up in conformity with prevailing rules, regulations and accounting standards as well as related guidance issued by Bangladesh Bank;vii) adequate provisions have been made for advance and other assets which are in our opinion, doubtful of recovery;viii) the information and explanations required by us have been received and found satisfactory;ix) we have reviewed over 80% of the risk weighted assets of the Bank and spent over 1,700 person hours; andx) Capital to Risk-weighted Asset Ratio (CRAR) as required by Bangladesh Bank has been maintained adequately during the year.

Dhaka, 26 Feb, 2020 Rahman Rahman Huq Chartered Accountants


Financial Statements as at and forthe year ended 31 December 2019

Citibank, N.A.




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xiv) Loans and advance net of provision

IFRS: As per IFRS 9. loans and advances should be presented net of provisions.

Bangladesh Bank: As per BRPD circular no. 14 (25 June 2003), provision on loans and advances

presentedseparately as liability and cannot be netted off against loans and advances.

xv) Presentation of Intangible Assets

IFRS: An intangible asset must be identified and recognised, and the disclosure must be given as per

IAS 38.

Bangladesh Bank: There is no specific regulation for intangible assets in BRPD circular no. (25 June

2003)hence, it is shown in fixed assets.

xvi) Provision on financial guarantees

IFRS: As per IFRS 9 bank shall recognise credit losses on undrawn loan commitments as the present

value ofthe difference between the contractual cash flow that are due by the customer if the

commitment is drawn downand the cash flows that bank expects to receive.

Bangladesh Bank: As per BRPD Circular No.01 (3 January 2018) and BRPD Circular No.14 (23

September2012), the Bank is required to maintain provision at 1% against gross off-balance sheet

exposures (whichincludes undrawn loan commitments).

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 market value using

marking tomarket concept with gains credited to revaluation reserve as per DOS circular 05

dated 26 May 2008 andDOS circular 05 dated 28 January 2009.

-Government treasury bills and bonds are designated as 'Held to maturity (HTM)' and remeasured

at presentvalue using amortisation concept as per DOS circular 05 dated 26 May 2008 and DOS

circular 05 dated 28January 2009.

-Investment in shares of listed companies are valued at market price and unlisted companies at cost

or book value of last audited balance sheet, whichever is lower.

-Net asset/(liability) of defined benefit scheme is net of present value of defined benefit

obligations, total planassets and other related items as required by IAS 19.

2.4 Functional and presentation currency

These financial statements are presented in BangladeshTaka(Taka/Tk/BDT)which is the Bank's

functional currency. The functional currency of OBU is US Dollar(USD). The financial statements

of OBU have been translated to presentation currency (Taka/Tk/BDT) using the exchange rate

prevailing at balance sheet date.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 estimates are 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 on the amounts

recognised in the financial statements are described below:

(a) Provisions for loans and advances

The Bank assesses its loans and advances for objective evidence of impairment on a regular basis

and particularly at year end. Whilst the primary criteria set out in BRPD circular no. 14 dated 23

September 2012 fordetermining whether a loan is impaired is objective, being based on borrower's

ability to make timely repayments,loans and advances may also be classified based on qualitative

judgment. This involves making assessments regarding the economic environment in which

borrowers operate in addition to making judgments about a borrower's financial situation and net

realisable value of any underlying collateral.

(b) Taxation

The estimation of current tax provision involves making judgments regarding admissibility of

certain expenses,estimating the amount of other expenses for tax purposes and applicability of

provision of the Finance Act 2019,although return will be submitted for tax based on the Finance

Act 2020.

In addition, the recognition of deferred tax assets requires the Bank to estimate the extent to

which it is probable that future taxable profits will be available against which the deferred tax

assets may be utilised.

(c) Post employment benefits-asset/(liability) from gratuity

The determination of Bank's asset/(liability) from gratuity involves the use of estimates regarding

demographic variables (such as employee turnover and mortality) and financial variables (such

as future increases in salaries and medical costs) that will influence the cost of the benefit.

(d) Depreciation

Depreciation is provided on a straight line basis over the estimated useful life of each item of

fixed asset. The determination of useful life involves the use of estimates regarding expected

use of the assets, expected physical wear and tear, technical or commercial obsolescence and

legal or similar limits on the use of the assets.

2.6 Reporting period

These financial statements cover one calendar year from 1 January to 31 December 2019.

The financial statements were authorised for issue by the Citi Country Officer and the Chief

Financial Officer on26 February 2020.

2.7 Cash flow statement

Cash flow statement has been prepared in accordance with the BRPD Circular No. 14 dated 25 June

2003issued 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 liquidity statement of assets and liabilities as on the reporting date has been prepared based

on residual maturity term which has been given in the statement.

2.10 Changes in significant accounting policy

The Bank initially applied IFRS 16: Leases from 1 January 2019. The Bank applied IFRS 16 using the

modifiedretrospective approach. Accordingly, the comparative information presented for 2018 is

not restated i.e. it ispresented, as previously reported, under IAS 17 and related interpretations.

The details of the changes inaccounting policies are disclosed below. Additionally, the disclosure

requirements under IFRS 16 have notgenerally been applied to comparative information.

A.Definition of a lease

Previously, the Bank determined at contract inception whether an arrangement was or contained a

lease underIFRIC 4: Determining whether an arrangement contains a lease. The Bank now assesses

whether a contract isor contains a lease based on the definition of a lease, as explained in Note 3.6.

On transition to IFRS 16, the Bank applied IFRS 16 to contracts that were previously identified as

leases followingthe practical expedient approach for existing contracts. Contracts that were not

identified as leases under IAS 17and IFRIC 4 were not reassessed for whether there is a lease under

IFRS 16.

B.As a lessee

As a lessee, the Bank leases office premise. The Bank previously classified rental of office as

operating leasesbased on its assessment of whether the lease transferred significantly all of the

risks and rewards incidental toownership of the underlying asset to the Bank. Under IFRS 16, the

Bank recognises right-of-use assets(presented as part of other assets) and lease liabilities for

these leases – i.e. these leases are on-balance sheetwhere lease liabilities were measured at the

present value of the remaining lease payments, discounted at theBank's weighted average rate as

at 1 January 2019. Right-of-use assets are measured at an amount equal to thelease liability,

adjusted by the amount of any prepaid or accrued lease payments.

On transition to IFRS 16, the Bank recognised right-to-use assets and lease liability on 1 January

2019. The impact of transition is summarised below:

1 January 2019

Right-to-use assets - other assets 1,57,01,00,382

Lease liabilities - other liabilities 1,46,22,23,430

When measuring lease liabilities for leases that were classified as operating leases, the Bank

discounted leasepayments using its incremental borrowing rate as at 1 January 2019.

This policy is applied to contracts entered into, on or after 1 January 2019.

(i) As a lessee

At commencement or on modification of a contract that contains a lease component, the Bank

allocates the consideration in the contract to each lease component on the basis of its relative

stand-alone prices. However, for the leases of property the Company has elected not to separate

non-lease components and account for the lease and non-lease components as a single lease

component.

The Bank recognises a right-of-use asset and a lease liability at the initial application date (for

contracts entered into before 1 January 2019) or commencement date (for contracts entered into a

fter 1 January 2019). The right-of-use asset is initially measured at cost, which comprises the initial a

mount of the lease liability adjusted by the amount of any prepaid or accrued lease payments relating

to that lease recognised in the statement of financial position immediately before the date of initial

application, plus any initial direct costs incurred and an estimate of costs to dismantle and remove

the underlying asset or to restore the underlying asset or the site on which it is located, less any lease

incentives received.

The right-of-use asset is subsequently depreciated using the straight-line method from the initial

application date (for contracts entered into before 1 January 2019) or commencement date (for

contracts entered into after 1 January 2019) to the end of the lease term, unless the lease transfers

ownership of the underlying asset to the Bank by the end of the lease term or the cost of the

right-of-use asset reflects that the Company will exercise a purchase option. In that case the

right-of-use asset will be depreciated over the useful life of the underlying asset, which is determined

on the same basis as those of property and equipment. In addition, the right-of-use asset is

periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the

lease liability.

The lease liability is initially measured at the present value of the lease payments that are not paid at

the initial application date (for contracts entered into before 1 January 2019) or commencement date

(for contracts entered into after 1 January 2019), discounted at the Bank's weighted average rate.

Generally, the Bank uses its incremental borrowing rate as the discount rate.

The Company determines its incremental borrowing rate by obtaining interest rates from various

external financing sources and makes certain adjustments to reflect the terms of the lease and type

of the asset leased.

Lease payments included in the measurement of the lease liability include fixed payments as per the

contracts.

The lease liability is measured at amortised cost using the effective interest method. It is remeasured

when there is a change in future lease payments arising from a change in an index or rate, if

there is a change in the Bank’s estimate of the amount expected to be payable under a residual value

guarantee, if the Bank changes its assessment of whether it will exercise a purchase, extension or

termination option or if there is a revised in-substance fixed lease payment.

When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying

amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of the

right-of-use asset has been reduced to zero.

Policy applicable before 1 January 2019

(i) Determining whether an arrangement contains a lease

At inception of an arrangement, the Bank determines whether the arrangement is or contains a lease.

At inception or reassessment of an arrangement that contains a lease, the Bank separates payments

and other consideration required by the arrangement into those for the lease and those for other

elements on the basis of their relative fair value. If the Bank concludes for a finance lease that it is

impracticable to separate the payments reliably, then an asset and a liability are recognised at an

amount equal to the fair value of the underlying asset; subsequently, the liability is reduced as

payments are made and an imputed finance cost on the liability is recognised using the Bank's

incremental borrowing rate.

(ii) Leased assets

Leases of property, plant and equipment that transfer to the Bank substantially all of the risks and the

rewards of ownership are classified as finance leases. The leased assets are measured initially at an

amount equal to the lower of their fair value and the present value of the minimum lease payments.

Subsequent to initial recognition, the assets are accounted for in accordance with the accounting

policy applicable to the asset.

Assets held under other leases are classified as operating leases and are not recognised in the Bank's

statement of financial position.

(iii) Lease payments

Payments made under operating lease are charged to profit or loss on a straight line basis over the

term of the lease. Lease incentives received are recognised as an integral part of the total lease

expenses, over the term of the lease.

Minimum 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.

3.7 Borrowings from other banks, financial institutions and agents

Borrowings from other banks, financial institutions and agents includes interest-bearing

borrowings against securities from Bangladesh Bank and other banks and call borrowing from other

banks. These items are reported in the financial statements at the gross value of the outstanding

balance.

Details are shown in note 10.

3.8 Deposits and other accounts

Deposits and other accounts include non interest-bearing current deposits redeemable at call,

interest bearing on demand and short-term deposits, savings deposits and fixed deposits. These

items are reported in the financial statements at the gross value of the outstanding balance.


3.9 Other liabilities

Other liabilities comprise items such as provision for loans and advances, provision for taxation,

interest payable, interest suspense, accrued expenses etc. Other liabilities are reported in

the balance sheet according to the guidelines of Bangladesh Bank, Income Tax Ordinance

1984 and internal policy of the Bank.


3.10 Fund deposited with Bangladesh Bank

This represents amounts deposited with Bangladesh Bank in foreign currency as a part of minimum

capital requirement.

According to subsection 3 of Section 13 of the Bank Company (amendment) Act, 2013 as amended by

BRPD Circular no. 18 dated 21 December 2014 and "Guidelines on Risk Based Capital Adequacy for

Banks (Basel III) as of December 2014" of Bangladesh Bank, all banks are required to deposit with

Bangladesh Bank the higher of Tk. 4,000 million and minimum capital requirement calculated as 10%

(2018: 10%) of risk weighted assets. In addition to minimum capital requirement, Capital Conservation

Buffer (CCB) is to be maintained in the form of Common Equity Tier 1 (CET1) at 0.625% per year from

2016 to 2019.


3.11 Contingencies

3.11.1 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.

3.11.2 Contingent assets

A contingent asset is a possible asset that arises from past events and whose existence will be

confirmed only by the occurrence or non-occurrence of one or more uncertain future events not

wholly within the control of the entity. Contingent assets usually arise from unplanned or other

unexpected events that give rise to the possibility of an inflow of economic benefits to the entity. An

example is a claim that an entity is pursuing through legal processes, where the outcome is uncertain.

Contingent assets are not recognised in the financial statements since this may result in the

recognition of income that may never be realised. However, when the realisation of income is virtually

certain, then the related asset is not a contingent asset and its recognition is appropriate. A

contingent asset is disclosed where an inflow of economic benefits is probable.

3.12 Revenue recognition

The Bank did not recognise right-of-use assets and liabilities for leases for which the lease term

ends within 12months of the date of initial application.

3 Significant accounting policies

The accounting policies set out below have been applied consistently to all periods presented in the

financialstatements except as mentioned in note 2.10.

3.1 Foreign currencies

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, liabilities and fund deposited with Bangladesh Bank as capital denominated in

foreign currency 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 the transaction.

Foreign currency differences arising on translation are recognised in the profit and loss account

except for exchange rate differences on fund deposited with Bangladesh Bank as capital, which

is recognised directly in equity.

3.2 Cash and cash equivalents

Cash and cash equivalents in cash flow statement include notes and coins in hand, both restricted

andunrestricted balances held with Bangladesh Bank and its agent bank (including foreign

currency), balance withother banks and financial institutions, money at call and short notice, 91

days treasury bills, Bangladesh Bankbills, reverse repo and prize bond.

3.3 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 tradingInvestment 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.

Revaluation

As per DOS Circular letter no. 05 dated 26 May 2008 and DOS circular no. 05 dated 28 January 2009, HFTsecurities are revalued each week using Marking to Market concept. Gains arising from revaluation of HFTsecurities on 'Marking to Market' basis are recognised in revaluation reserve account while losses fromrevaluation of the same securities are recognised in profit or loss.

Value of investments has been shown as under:

Government treasury bills and bonds (HFT) At market value (using marking to market concept)

Government treasury bills and bonds (HTM) At present value (using marking to market concept)

Prize bond At cost

Unquoted shares At cost or book value of the last audited balance sheet whicheveris lower

Details are shown in Note 6.

3.4 Loans and advances and provisions for loans and advances a) Loans and advances are stated in the balance sheet at gross value. Loans and advances are initially measured at fair value and subsequently measured at amortised cost. b) Provision for loans and advances is made on the basis of periodical review by the management

and as per instructions contained in Bangladesh Bank BRPD Circular No. 15 dated 27 September 2017, 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. 5 dated 29 May 2013. The guidance in the circulars follow a formulaic approach whereby specified rates are applied to the various categories of loans as defined in the circulars. These circulars also provide scope for further provisioning based on qualitative judgments. The rates of provision for different classifications are given below:

Particulars Rates 2019 2018General provision on: All unclassified loans and advances except following: 1.00% 1.00%Small and medium enterprise financing 0.25% 0.25%Consumer financing 5.00% 5.00%Housing finance and loans for professionals to set up businessunder consumer financing scheme 2.00% 2.00%Loan to BHs/MBs/SDs against shares 2.00% 2.00%Agricultural loans 1.00% 1.00%

In accordance with BRPD Circular No.14 dated September 23, 2012, BRPD circular No. 05 dated 29May 2013 and BRPD Circular No. 16 dated 18 November 2014, the rate of provision on the outstanding amount of loans kept in the 'Special Mention Account' will be the same as the rates

stated above, i.e.0.25% against all unclassified loans of Small and Medium Enterprise (SME), 5% on the unclassified amount for Consumer Financing, 2% on the unclassified amount for Housing Finance, 1% on the unclassified amount for agricultural loans and 1% against all other unclassified loans.

Specific provision on:

Substandard and doubtful agricultural loans 5.00% 5.00%

Substandard loans and advances 20.00% 20.00%

Doubtful loans and advances 50.00% 50.00%

Bad/loss loans and advances 100.00% 100.00%

c) Loans and advances are written off in accordance with BRPD circular no. 02 dated 13 January

2003 andBRPD circular no. 13 dated 07 November 2013 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 offs 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.

Write-off loans and advances are reported to the Credit Information Bureau (CIB) of Bangladesh

Bank. Details are shown in note 7.

3.5 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 cost/revaluation.

Cost includes expenditure that are directly attributable to the acquisition of the assets 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 that item, 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 component will flow

to the Bank and its cost can be measured reliably. The carrying amount of the replaced component is

derecognised. The costs of the day to day servicing of fixed assets are recognised in the profit and

loss account as incurred.

Depreciation

Depreciation is recognised in the profit and loss account on a straight line basis over the estimated

useful life 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. Leased assets are depreciated

over the shorter of the lease term and their useful lives unless it is reasonably certain that the Bank

will obtain ownership by the end of the lease. In case of acquisition of fixed assets, depreciation is c

harged 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 are as follows:

Category of assets Rate of depreciation

Furniture and fixtures 10% - 33.33%

Equipment 10% - 33.33%

Motor vehicles 20%

Depreciation methods, useful lives and residual values are reassessed at each reporting date and

adjusted, if appropriate.

Retirement and disposals

An asset is derecognised on disposal or when no future economic benefits are expected from its use

and subsequent disposal. Gains or losses arising from the retirement or disposal of an asset is

determined as the difference between the net disposal proceeds and the carrying amount of the

asset and is recognised as gain and loss from disposal of asset under "Other operating income"

in the profit and loss account.

3.6 Finance and operating leases

The Bank has applied IFRS 16 Leases using the modified retrospective approach and therefore the

comparative information has not been restated and continues to be reported under IAS 17 and IFRIC

4. The details ofaccounting policies under IAS 17 and IFRIC 4 are disclosed separately.

Policy applicable from 1 January 2019

At inception of a contract, the Bank assesses whether a contract is, or contains, a lease. A contract

is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a

period of time in exchange for consideration. To assess whether a contract conveys the right to

control the use of an identified asset, the Bank uses the definition of a lease in IFRS 16.



3.12.1 Interest on loans and advancesIn terms of provisions of IFRS 15 on revenue and disclosures in the financial statements of the Bank, the interest receivable is recognised on an accrual basis.Interest on loans and advances is calculated on daily product basis and accrued at the end of each month but charged to customer accounts on quarterly basis.In accordance with BRPD circular no. 14 dated 23 September 2012, interest accrued on sub-standard (SS) and Doubtful (DF) loans are credited to "interest suspense account" included in "other liabilities" instead of income account. Interest from loans and advances ceases to be accrued when they are classified as Bad and loss category. As per the BRPD circular no. 03 dated 16 February 2016 and BRPD circular no. 6 dated 19 March 2015, the Bank is required to identify its good borrowers and to pay 10% rebate on the interest earned from them during the year. Interest income for loans and advances are recognized taking into account the amount of rebate allowed to the customers.3.12.2 Income from investmentInterest income on investments in government and other securities is recognised on accrual basis. Investment income includes interest income, capital gain, and revaluation loss on government securities. Investment income also includes dividend on investment in shares. Dividend income is recognised when the right to receive payment is established. This is the ex-dividend date for the equity securities.3.12.3 Fees and commission incomeThe Bank earns fees and commissions from a diverse range of services provided to its customers. Commission on Letter of Guarantee is recognised on accrual basis. Other fees and commission income is recognised on a realisation basis.3.12.4 Exchange IncomeExchange income includes all gains and losses from foreign currency transactions.3.13 Interest paid on borrowings and other deposits Interest paid on deposits and other accounts except fixed deposit is accrued on a monthly basis, but credited to customer account on half yearly basis. Interest on fixed deposit is accrued on a daily basis and credited to customer account on maturity of fixed deposit. Interest on borrowing from other banks is accrued on a daily basis and paid through Bangladesh Bank account on maturity.All other expenses are recognised on accrual basis.

3.14 Post Employment benefitThe retirement benefits accrued for the employees of the Bank as on reporting date have been accounted for in accordance to the provisions of International Accounting Standard (IAS-19: Employee Benefits).

3.14.1 Provident fundProvident fund scheme (defined contribution plan) is given to the eligible staff of the Bank in accordance with the rules of the locally registered provident fund constituted under an irrevocable trust. Payments to the provident fund are charged as expense in the profit and loss as they fall due.

3.14.2 Gratuity fundThe Bank operates a funded gratuity scheme duly approved by the National Board of Revenue. Under this scheme, the Bank’s obligation to the members of the scheme is to pay one month’s last drawn salary for each year of service on the termination of employment. Members who leave the Bank within the first five years of service are not entitled to any benefits under this scheme. The scheme is considered as a defined benefit plan as it meets the recognition criteria specified for this purpose. The fund is managed in accordance with rules of the locally registered fund constituted under an irrevocable trust.

Actuarial valuation of the gratuity scheme is done periodically to assess the adequacy of the liabilities provided for under the gratuity scheme as per IAS 19 Employee Benefits.

In accordance with the requirements of IAS 19: Employee Benefits, the Bank’s net obligation in respect of its gratuity fund is calculated by estimating the amount of future benefit that employees have earned in return for their service in the current and prior periods; that benefit is discounted to determine its present value, and any unrecognised past service costs and the fair value of any plan assets are deducted. The calculation is performed by a qualified actuary using the Projected Unit Credit method.

Actuarial gains and losses that arise are recognised in equity and presented in the statement of Changes in Equity in the period they arise. Past service costs are recognised immediately to the extent that benefits are vested and are otherwise recognised over the average period until benefits are vested on a straight line basis.

3.15 Short-term employee benefitsShort-term employee benefits are employee benefits which fall due wholly within twelve months after the end of the period in which the employee renders the related service, including salaries, bonuses and other allowances.

3.16 Provisions and accrued expensesIn compliance with IAS 37, provisions and accrued expenses are recognised in the financial statements when the Bank has a legal or constructive obligation as a result of past events, 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.

3.17 Provisions for off balance sheet exposuresIn compliance with Bangladesh Bank guidelines, off balance sheet items are disclosed under contingent liabilities. As per BRPD Circular No.01 dated 03 January 2018 and BRPD Circular No.14 dated 23 September 2012, the Bank is required to maintain provision at 1% against gross off-balance sheet exposures (cash margin or value of eligible collateral will not be deducted while computing off-balance sheet exposure).Details are shown in note 12.2.

3.18 Provisions on balances with other banks and financial institutions (Nostro accounts)Provisions made for unsettled debit transactions for more than three months on nostro accounts are reviewed at each balance sheet date by management and certified by external auditors in accordance with Bangladesh Bank Foreign Exchange Policy Department, Circular No. FEOD (FEMO)/01/2005-677 dated 13 September 2005. Details are shown in note 12.

3.19 Provisions for other assetsBRPD Circular no. 14 dated 25 June 2001 requires a provision of 100% on other assets which are outstanding for one year and above.

3.20 Provision for taxation3.20.1 Income taxProvision for taxation has been calculated using tax rates as prescribed in the Income Tax Ordinance (ITO) 1984 and relevant Special Regulatory Orders (SROs) and any adjustment to tax payable in respect of previous years.

3.20.2 Current taxCurrent tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of prior years.Provision for taxation for the year ended 31 December 2019 has been made on the basis of the provisions of the Income Tax Ordinance 1984 and the Finance Act 2019. Currently the income tax rate applicable for banks is 40%.

3.20.3 Deferred taxDeferred 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 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 for trading (HFT) securities are recognised directly in revaluation reserve as 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 12.4.2.

3.21 Impairment of non-financial assetsThe carrying amounts of 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.

3.22 Reconciliation of inter-bank/inter-branch accountBooks of account with regard to inter-bank (in Bangladesh and outside Bangladesh) are reconciled and no material differences were found which may affect the financial statements significantly.

3.23 Core risk managementBRPD circulars no.17 dated 07 October 2003, BRPD circular no. 04 dated 05 March 2007 and DOS circular no. 2 dated 15 February 2012 require banks to put in place an effective risk management system. The risk management system of the Bank covers the following six broad risk areas: - Credit risk - Foreign exchange risk - Asset liability management risk - Money laundering risk - Internal control and compliance risk - Information and communication risk - Technology security risk

The prime objective of the risk management is that the Bank undertakes well calculated business risks to safeguard its capital, financial resources and growth of sustainable profitability. In this context, the Bank has formed a risk management committee to overview regular monitoring of those critical risk areas.

Citibank, N.A.




of 8

3.23.1 Credit riskCredit risk is one of the major risks faced by the Bank. This can be described as the situation when a borrower or counterparty of the Bank will fail to meet its obligations in accordance with agreed terms and conditions. To assess and to mitigate the credit risk, the Bank has policies and procedures in place, which is considered an important tool for retaining the quality and performance of the assets. Accordingly, the Bank’s credit risk management functions have been designed to address all these issues including risks that arises from global changes in banking, finance and related issues.

The Bank has defined segregation of duties for all credit risk related activities like credit approval, administration, monitoring and recovery functions.

3.23.2 Foreign exchange risk Foreign exchange risk is defined as situation when change in earnings may happen due to unfavorable change in foreign exchange rates and the relevant currency position of the Bank. Treasury front office conducts deal for commercial purpose and back office of the treasury keep records and passes entries in books of accounts. As per Bangladesh Bank guidelines, the Treasury Department is operationally and physically divided into front office and back office to mitigate any risk. Separate telephone were installed in the dealing room to meet Bangladesh Bank guidelines. In addition, the Bank has also implemented strong monitoring and control by setting limits on approval of a deal, net open position, maximum loss per day/month and DV01, which are monitored on a regular basis.

3.23.3 Asset liability management riskChanges in market liquidity and/or interest rate exposes Bank's business to the risk of loss. The Bank has an Asset Liability Committee (ALCO) which is responsible for managing short-term and long-term liquidity to ensure that the Bank has adequate liquidity at all times and at the most appropriate funding cost. ALCO reviews liquidity requirements of the Bank, maturity of assets and liabilities, deposit and lending pricing strategy and the liquidity contingency plan. The Asset Liability Committee also monitors Balance Sheet risk, which is defined as potential changes in earnings due to changes in rate of interest and exchange rates which are not of trading nature.

3.23.4 Prevention of money laundering Money Laundering and Terrorist Financing have potentially devastating economic, security and social consequences. Money laundering risk is defined as the loss of reputation and expenses incurred as penalty for being negligent in prevention of money laundering. For mitigating the risk, the Bank has designated Country Compliance Officer and Anti Money Laundering Compliance Officer, who independently review the transactions of the accounts to verify suspicious transactions. Manuals for Prevention of Money Laundering have been established and transaction profiling is in place. Training has been continuously given to all the categories of Executives and Officers for developing awareness and skill for identifying suspicious transactions and other activities relating to money laundering.

3.23.5 Internal control and compliance riskThe internal control environment is the framework under which internal controls are developed, implemented and monitored. It consists of the mechanisms and arrangements that ensure internal and external risks to which the Bank is exposed are identified; appropriate and effective internal controls are developed and implemented to soundly and prudently manage these risks; reliable and comprehensive systems are to be put in place to appropriately monitor the effectiveness of these controls.The Bank being one of the largest global banks has established an appropriate and effective internal control environment to ensure that the Bank is managed and controlled in a sound and prudent manner. The factors which together comprise the control environment are: a. Management Committee (MANCOM) that is actively concerned with sound corporate governance and that understands and diligently discharges its responsibilities by ensuring that the Bank is appropriately and effectively managed and controlled; b. Business Unit managements are those actively manage and operate the Bank in a sound and prudent manner; and c. Control mechanism to monitor the effectiveness of the organizational and procedural controls

in place. An independent internal audit to engage a risk-based methodology in conducting periodic audits for the various businesses and functions in Bangladesh.

Three Lines of Defense: Citi relies on three lines of defense for the management of its risks and ensure effective control environment. These lines of defense are outlined in Global Operational Risk Management Policy which is summarised below.

First Line of Defense:The business owns its risks, including the operational, reputational, legal and financial risks and is responsible for its management. In order to mitigate these risks, the business is responsible for the design and operation of controls to reduce the likelihood of errors and lapses and to ensure ongoing compliance is embedded in all relevant decisions and operations.

Businesses will define the segmentation structure they will use for implementing their Program (i.e. O&T or Operations, Technology or ICG Operations and ICG Technology, etc.). The business may rely on Functional Specialists (for example O&T) to implement certain responsibilities under the Policy. These specialists operating within and/or across managed businesses are responsible for advising on, contributing to, executing, and/or overseeing key controls in support of efficient and effective management of risks.

Second Line of Defense:Citi’s Control Functions establish the second line of defense to enhance the effectiveness of controls across products, business lines and regions. Finance, Global Compliance, Human Resources, Legal, Risk, Finance & Risk Infrastructure, all own policies or processes that affect Citi’s control. Oversight is also established in respective functions to ensure controls are in place across all regions/countries.

Third Line of Defense: Internal Audit, in accordance with their charter, provides independent assessment and evaluation of the control environment.

The Bank has also assessed ICC Risk in accordance with guidelines issued by Bangladesh Bank and found those to be in line with the aforesaid framework being used at the Bank.

3.23.6 Information technology riskThe Bank has an in-house IT department for the support and services of IT systems locally, backed by a global IT support team to manage core group-wide IT systems and processes. The Business Continuity Plan (BCP) is formulated to cover various operational risks including IT risk and consists of a recovery plan (i.e. backup and recovery process).

3.23.7 Audit committeeAccording to BRPD Circular No. 12 (23 December 2002), all banks are advised to constitute an audit committee comprising of member of the board. The audit committee will assist the board in fulfilling its oversight responsibilities including implementation of the objectives, strategies and overall business plan set by board for the effective functioning of the Bank. The committee will review the financial reporting process, the system of internal control and management of the financial risk, the audit process and the Bank’s process for monitoring compliance with laws and regulations and its own code of business conduct.The Bank, being a branch of a foreign bank, does not have a local board of directors from whom to select an Audit Committee but there is a Business Risk, Compliance and Control Committee (BRCC) where all risk issues are discussed, action points set to mitigate risks identified and documented. However, the Bank obtained formal dispensation from the Banking Regulation and Policy Department of Bangladesh Bank as regards to the formation of the committee as suggested in the BRPD Circular No 12 dated 23 December 2002.

3.24 OffsettingFinancial assets and liabilities are offset and the net amount presented in the balance sheet when, and only when, the Bank has 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 Bank’s trading activity.

3.25 ComparativesFigures of previous year have been rearranged whenever considered necessary to conform to current year's presentation. IAS 8: Accounting policies, Changes in Accounting Estimates and Errors requires an entity to correct material prior period errors retrospectively by restating the comparative amounts for the prior period presented in which the error occurs. No connections of errors were made in the current period.

3.26 Operating segmentsThe Bank has no identified operating segment and as such presentation of segmental reporting is not made in the financial statements as per IFRS 8.

3.27 Events after the reporting periodAll material events after the reporting period are considered and where necessary, adjusted for or disclosed in accordance with IAS 10: Events after the reporting period.

3.28 Standard issued but not yet effectiveNumber of amendments to standards are effective for annual periods beginning on or after 1 January 2020 and earlier application is permitted. However, the Bank has not early applied the following amendments to standard in preparing these financial statements.Also, the following amendments to standards and interpretations are not expected to have a significant impact on the Bank’s financial statements: - Amendments to References to Conceptual Framework in IFRS Standards - Definition of a Business (Amendments to IFRS 3) - Definition of Material (Amendments to IAS 1 and IAS 8)

4 Cash (including foreign currencies)

In BDT note 31 December 2019 31 December 2018

Foreign currency balance with Bangladesh Bank includes USD 57,698,043.95, equivalent to Tk.

4,898,563,931 (2018: Tk. 4,840,865,887) maintained as capital. It has been adjusted for exchange

rate differences resulted from revaluation at Tk. 84.9 (2018: Tk.83.9).

4.1 Reconciliation with clearing accounts statement from Bangladesh Bank

There were no unidentified transactions appearing in the Bank's balances with Bangladesh Bank as at

31 December 2019. Transactions up to 03 October 2019 were completely adjusted. For the remaining

balances, the unadjusted items have been identified and reconciliation process is in place.

4.2 Cash Reserve Ratio ( CRR ) and Statutory Liquidity Reserve (SLR )

Cash Reserve Ratio (CRR) and Statutory Liquidity Reserve (SLR) have been calculated and maintained

in accordance with Section 33 of the Bank Company (amendment) Act, 2013 and of instructions

contained in MPD Circular nos. 1 dated 23 June 2014, DOS Circular No. 1 dated 19 Jan 2014 and MPD

Circular no. 1 dated 03 April 2018 issued by Bangladesh Bank.The statutory Cash Reserve Ratio on

the Bank's time and demand liabilities at the rate of 5.5% (bi weekly) and 5% (daily) has been

calculated and maintained with Bangladesh Bank in current account. Cash reserve ratio maintained by

the Bank, is shown below:

Cash in hand: Local currency

Foreign currencies

Balance with Bangladesh Bank: Local currency

Foreign currencies

Balance with Sonali Bank Limited (as agent of Bangladesh Bank): Local currency

17,62,29,9451,12,21,593

18,74,51,538

3,24,53,07,838 6,83,34,94,518

10,07,88,02,356

- 10,26,62,53,894

12,92,71,90386,55,857

13,79,27,760

4,34,18,49,819 5,13,89,10,190

9,48,07,60,009

- 9,61,86,87,769

4.2.2 Statutory Liquidity Reserve (SLR)

As per the MPD circular nos. 5 dated 01 December 2010, Bank's has maintained 19% Statutory

Liquidity Reserve (SLR). On a new MPD circular nos. 2 issued on 1 dated 23 June 2014, 13% SLR has

been maintained on the Bank's time & demand liabilities in the form of treasury bills, bonds and

debentures including foreign currency balance with Bangladesh Bank. Statutory Liquidity Reserve

maintained by the Bank, is shown below:

in BDT note 31 December 2019 31 December 2018

Required reserveActual reserve held with Bangladesh Bank 4.2.3

Surplus

5,729,064,792 11,951,831,152

6,222,766,360

4,559,737,056 8,677,363,528

4,117,626,472

5.3 Maturity grouping of balance with other banks and financial institutions


Repayable on demand 9,302,115,319 6,773,427,318

Not more than one months 5,263,800,000 839,000,000

Over one month but not more than three months 1,528,200,000 1,719,950,000

Over three months but not more than one year - 839,000,000

Over one year but not more than five years - -

Over five years - -

16,094,115,319 10,171,377,318

6

6.1

InvestmentsGovernment securities (Note 6.1)Reverse Repo with Bangladesh BankOther (Note 6.2)

Treasury bills (Note 6.3)National investment bondBangladesh Bank billsBangladesh Bank treasury bonds (Note 6.3)Government notes/bondPrize bonds

11,214,345,971 -

6,000,000 11,220,345,971

7,301,067,377 - -

3,913,130,194 -

148,400

11,214,345,971

8,281,925,575 -

6,000,000 8,287,925,575

2,071,186,013-

- 6,210,375,762

- 363,800

8,281,925,575

Government securities

6.2 Other investments (unquoted) Central Depository Bangladesh Ltd. (CDBL)* 6,000,000 6,000,000 Debentures and bond - - Other investment - - Gold, etc. - - 6,000,000 6,000,000

*The Bank holds 3,000,000 ordinary shares in CDBL of Taka 10 each which is inclusive of 2,400,000 bonus shares.

6.3 Classification of treasury bills and government treasury bonds Held to maturity (HTM) Treasury bills - - Treasury bonds - - - - Held for trading (HFT) Treasury bills (Note: 6.4) 7,301,067,377 2,071,186,013 Treasury bonds (Note: 6.4) 3,913,130,194 6,210,375,762 Bangladesh Bank bills - - 11,214,197,571 8,281,561,775 11,214,197,571 8,281,561,775

Daily 5%of average demandand time liabilities:Required reserveActual reserve held

Surplus

Bi-weekly 5.5% of averagedemand and time liabilities:

Required reserveActual reserve held (Annexure- H)

Surplus

2,203,486,458 2,981,554,933

778,068,475

2,423,835,104 2,870,118,157

446,283,053

1,753,745,021 2,185,604,166

431,859,145

1,929,119,523 2,429,888,718

500,769,195

4.2.1 Cash Reserve Ratio (CRR) In BDT note 31 December 2019 31 December 2018

4.2.3 Actual reserve held for Statutory Liquidity Reserve


Cash in hand 187,451,538 137,927,760

Surplus balance with Bangladesh Bank for SLR 557,719,933 256,484,166

Balance with agent bank (Sonali

Bank Ltd.) as per statement - -

Government treasury bills 7,294,670,315 2,070,348,541

Government treasury bonds 3,911,840,966 6,212,239,261

Bangladesh Bank Bill - -

Prize bond 148,400 363,800

Reverse Repo - -

11,951,831,152 8,677,363,528

5 Balance with other banks and financial institutions


Inside Bangladesh 5.1 290,239,156 707,005,365

Outside Bangladesh 5.2 15,803,876,163 9,464,371,953

16,094,115,319 10,171,377,318

5.1 Inside Bangladesh


Current account:

AB Bank Ltd. - 1,935,134

Agrani Bank Ltd. 3,809,111 4,446,539

IFIC Bank Ltd. 25,378,517 128,161,151

Prime Bank Ltd. 3,100,041 347,964,218

Sonali Bank Ltd. 34,116,974 36,971,689

Southeast Bank Ltd. 195,314,036 159,847,348

261,718,679 679,326,079

Short notice deposit (SND):

Sonali Bank Ltd. 28,520,477 27,679,286

290,239,156 707,005,365

5.2 Outside Bangladesh


Interest bearing account:

Citibank, Australia (AUD) 83,682 177,676

Citibank, Canada (CAD) 29,884 25,894

Citibank, Hong Kong (HKD) 48,751 47,400

Citibank, Ireland (EUR) 92,111,574 29,706,295

Citibank, Karachi (USD) 25,227,891 17,695,797

Citibank, London (CHF) 362,838 230,646

Citibank, London (GBP) 80,80,892 7,324,810

Citibank, London (EUR) 72,826,025 24,198,020

Citibank, London (DKK) 62,287 55,406

Citibank, London (SEK) 63,409 64,653

Citibank, Mumbai (USD) 143,533,912 234,995,782

Citibank, New York (USD) 8,656,419,744 5,732,382,360

Citibank, Norway (NOK) 6,770 11,738

Citibank, Singapore (SGD) 85,851 133,634

Citibank, Sri Lanka (USD) 200,790 2,241,671

Citibank, Tokyo (JPY) 12,731,863 17,130,171

9,011,876,163 6,066,421,953

Time placement

Citibank, Singapore (USD) 6,792,000,000 3,397,950,000

15,803,876,163 9,464,371,953

Details are shown in Annexure C.



Citibank, N.A.




of 8

In BDT 31 December 2019

31 December 2018

9.1 Others

Foreign exchange revaluation 34,932,498 15,878,432 Deferred tax assets (Note 12.4.2) 163,917,744 215,088,474

Clearing and collection items - 860,707,151 Overdrawn on deposit account 81,150 100,800 Export bill negotiation - - Accounts Receivable 148,053,934 76,480,424 Accounts receivable with OBU - - Asset retirement obligation 3,200,888 3,435,544 Operating lease ROU 1,454,885,969 - Net surplus assets of defined benefit scheme (Note 12.5.1) 655,077 -

1,805,727,260 1,171,690,825


31 December 2018

9.2 Maturity grouping of other assets

On demand - 862,169,192 Not more than one month 235,229,993 119,144,925 Over one month but not more than three months 20,656,956 180,428,384 Over three months but not more than one year 167,062,039 37,075,988 Over one year but not more than five years 454,537,754 146,256,129 Over five years 1,061,626,798 221,797,190

1,939,113,540 1,566,871,808

9.3 Particulars of required provision for other asset:

In BDT

Nil - - - -

Base for

Provision

% of required

provision

Required

provision

Required

provision

31 December 2018

31 December 2019


31 December 2018

10 Borrowings from other banks, financial institutions and agents

Inside Bangladesh (Note 10.1) 2,405,614 908,180,621

Outside Bangladesh (Note 10.2) 3,293,950,200 5,623,398,339 3,296,355,814 6,531,578,960

10.1 Inside Bangladesh

Secured Repayable on demand - - Others - call borrowings - 700,000,000 Collateralised repo with Bangladesh Bank (under ALS programme) - - Others borrowings - 700,000,000 EDF (Export Development Fund) from Bangladesh Bank 2,405,614 208,180,621 Unsecured - - 2,405,614 908,180,621


31 December 2018


31 December 2018


31 December 2018


31 December 2018

10.2 Outside Bangladesh

Secured Others borrowings - - Citibank, N.A. London 2,444,950,200 5,623,398,339 Citibank, N.A. Singapore 849,000,000 -

Unsecured - - 3,293,950,200 5,623,398,339

10.3 Maturity wise grouping of borrowings from other banks, financial institutions and agents

On demand - - Within one month 3,293,950,200 6,323,398,339 Over one month but within three months 1,060,916 77,661,165 Over three months but within one year 1,344,698 130,519,456 Over one year but within five years - - Over five years - - 3,296,355,814 65,315,78,960 11 Deposits and other accounts

Current account and other accounts, etc. Current account 12,842,245,220 10,334,710,975 Short notice deposits 18,984,202,100 13,400,882,470 Sundry deposits (Note 11.5) 2,302,597,209 2,867,532,003

34,129,044,529 26,603,125,448

Bills payable (Note 11.4) 1,261,919,524 1,627,534,148 Savings deposits 358,561,859 207,530,935 Fixed deposits 2,907,170,771 3,120,373,829

38,656,696,683 31,558,564,360

11.1 Classification of deposits from banks and others

Inter-bank deposits (Note 11.1.1) 352,210,553 336,565,711

Other deposits 38,304,486,130 31,221,998,649

31,558,564,360 38,656,696,683


31 December 2018


31 December 2018

11.1.1 Inter bank deposits

Inside Bangladesh AB Bank Limited - -

- - Outside Bangladesh

Citibank Europe Plc. 164,318,131 47,234,528 Citibank, New York Foreign Exchange 319,528 228,150 Citibank, Mumbai 31,483,591 245,477,979 Citibank, Colombo 42,303,459 11,268,777 Citibank, London 112,219,068 30,528,132 Citibank, Japan Ltd. 74,090 74,090 Citibank, Berhad 1,492,686 1,754,055

352,210,553 336,565,711

352,210,553 336,565,711

11.2 Unclaimed deposits for 10 years or more

Payment order 462,421 645,130

462,421 645,130

For details refer to Annexure F.

9 Other asset

a) Income generating other assets - -

b) Non-income generating other assets:

i) Investments in shares of

subsidiary companies - -

ii) Stationery, stamps, printing

materials in stock 2,773,367 3,625,813

iii) Advance rent and advertisement 1,002,416 195,936,705

iv) Interest accrued on

investment but not collected, 80,475,237 168,781,178

v) Commission and brokerage

receivable on shares and debentures - -

vi) Other income receivables 7,004,644 12,401,749

vii)Security deposits 8,077,364 8,075,331

viii) Preliminary, formation and

organisational expenses, renovation,

development and prepaid expenses - -

ix) Branch adjustment - -

x) Suspense 1,531,656 1,464,572

xi) Silver - -

xii) Other Prepaid Expenses 32,521,596 4,895,635

xiii) Others (Note 9.1) 1,805,727,260 1,171,690,825

1,939,113,540 1,566,871,808


31 December 2018

Dhaka Division

Chittagong Division

7.7 Classification of loans and advances

Unclassified:

Standard

Special mentionaccount

Classified:

Substandard

Doubtful

Bad/loss

17,738,357,688

733,784,794

18,472,142,482

18,251,689,791

-

18,251,689,791

-

-

220,452,691

220,452,691

18,472,142,482

96.03%

3.97%

100%

98.81%

0.00%

98.81%

0.00%

0.00%

1.19%

1.19%

100.00%

20,778,906,162

1,837,389,752

22,616,295,914

22,395,867,223

-

22,395,867,223

-

-

220,428,691

220,428,691

22,616,295,914

91.88%

8.12%

100%

99.03%

0.00%

99.03%

0.00%

0.00%

0.97%

0.97%

100.00%

% Taka

2018

% Taka

2019

31 December 2019Taka

31 December 2018Taka

i) Loans considered good in respect of which the banking company is fully secured (unclassified loans and advances); 18,251,689,791 22,395,867,223 ii)Loans considered good against which the banking company holds no security other than the debtor's personal guarantee; - -

7.8 Particulars of loans and advances

iii) Loans considered good secured by the personal undertakings of one or more parties in addition to the personal guarantee of the debtor; - -

iv) Loans adversely classified; provision not maintained there against; - -

v) Loans due by directors or officers of the banking company or any of these either separately or jointly with any other persons; - - vi) Loans due from companies or firms in which the directors of the banking company have interests as directors, partners or managing agents or in case of private companies as members; - -

vii) Maximum total amount of advance including temporary advance made at any time during the year to directors or managers or officers of the banking companies or any of them either separately or jointly with any other person; - - viii) Maximum total amount of advances, including temporary advances granted during the year to the companies or firms in which the directors of the banking company have interest as directors, partners or managing agents or in case of private companies as members; - -

ix) Due from banking companies - -

x) Classified loans for which interest has not been charged:

a) Increase/(Decrease) of provision (specific) 70,500 89,500 Amount of loans written off - - Amount realised against the loan previously written off - -

b) Provision against the loan classified as bad/loss at the date of balance sheet 162,273,674 162,203,174 (c) Amount of interest charged in suspense account 58,226,517 58,226,517

xi) Loans written off: Current year - - Cumulative to-date - - The amount of written off loans for which lawsuit filed - -

7.9 Particulars of required provision for loans and advances

221,426,211

-

-

--

2,532,461

-

223,958,672

-

-

-

386,160,846

422,015,959

17,3,272,495

1,525,771

-

--

3,141,320

-

177,939,586

-

-

-

162,226,174

162,226,174

162,202,174

162,202,174

340,165,760

413,129,926

72,964,166 35,855,113

Unclassified-general provisionAll unclassified loans (other thansmall enterprises, housingfinance, loan to MBs loans forprofessional, consumer financingand special mention account)Small and medium enterprisefinancing

Loan to BHs/MBs/SDs againstshares

Housing and loan for professionalConsumer financeAgriculture finance

Special Mention Account (SMA)

Required general provisionClassified - specific provision

Sub-standard and doubtful

agricultural loans

Sub-standard

Doubtful

Bad/loss

Required specific provision

In BDT Note 31 December 2019

31 December 2018

Required provision for loans and advances

Total provision maintained

Excess provision as at 31 December

Required provision

Taka

1.00%

0.25%

2.00%

2.00%5.00%1.00%

1.00%

5.00%

20.00%

50.00%

100.00%

% of required provision

Required provision

Taka

17,327,249,458

610,308,333

-

--

314,132,000

-

-

-

-

162,226,174

Base for provision

Taka

31 December 2019

31 December2018

17,327,249,458

610,308,333

-

--

314,132,000

-

-

-

-

220,452,691

Outstanding

Taka

7.10 Bills purchased and discounted excluding treasury bills:

Inside Bangladesh 3,467,718,951 4,096,052,879 Outside Bangladesh - -

3,467,718,951 4,096,052,879

7.11 Maturity wise bills purchased and discounted

Payable within one month 476,556,158 326,687,010 Payable over one month but within three months 1,840,487,761 2,901,022,837 Payable over three months but within six months 1,131,871,102 852,732,262 Payable over six months 18,803,930 15,610,770 3,467,718,951 4,096,052,879

8 Fixed assets including premises, furniture and fixtures

Premises used by the bank - - Vehicles 30,365,526 30,365,526 Furniture and fixtures 257,253,753 288,355,573 Office equipment 294,908,284 279,740,576

582,527,563 598,461,675


31 December 2018


31 December 2018

Less: Accumulated depreciation

Vehicles 30,365,520 30,365,521

Furniture and fixtures 213,431,371 213,148,932

Office equipment 217,777,315 203,279,023

461,574,206 446,793,476

120,953,357 151,668,199

7.6 Particulars of loans and advances - geographical location wise

6.5 Cost and market value of investments Treasury bills (including Bangladesh Bank bills): Face value of HFT securities 7,446,200,000 2,100,000,000 Unamortised amount (134,134,850) (25,372,951) MTM gain (charged in Equity) 568,641 569,885 MTM loss (charged in P&L) (11,566,414) (4,010,921)

Market value 7,301,067,377 2,071,186,013 Government bond: Face value of HFT securities 6,146,600,000 6,417,200,000 Unamortised amount 296,498,649 472,785,307 MTM gain (charged in Equity) 21,423,304 1,180,713 MTM loss (charged in P&L) (254,146,191) (270,850,060)

Market value 6,210,375,762 6,620,315,960

Government bond Face value of HFT securities 3,970,000,000 6,146,600,000 Unamortised amount 22,101,914 296,498,649

MTM gain (charged in Equity) 1,882,169 21,423,304 MTM loss (charged in P&L) (80,853,889) (254,146,191) Market value 3,913,130,194 6,210,375,762 Prize bond 148,400 363,800 Reverse Repo with Bangladesh Bank - - Central Depository Bangladesh Ltd. (CDBL)* 6,000,000 6,000,000 11,220,345,971 8,287,925,575 *As per last audited financial statement of CDBL, book value per share is higher than the cost price of the investment.

6.6 Maturity grouping of investments Repayable on demand 148,400 363,800 Not more than one month 2,941,780,530 2,442,677,576 Over one month but not more than three months 1,688,808,200 1,162,078,708 Over three months but not more than one year 5,194,020,699 2,337,290,542 Over one year but not more than five years 1,389,588,142 2,339,514,949 Over five years 6,000,000 6,000,000

11,220,345,971 8,287,925,575

6.7 Repo and Reverse-repo (other than Repo under ALS program)There were no repo outstanding as at 31 December 2019 and 2018.

7 Loans and advances

Loans, cash credits, overdrafts (note 7.1) 15,004,423,531 18,520,243,035Bills purchased and discounted 3,467,718,951 4,096,052,879 18,472,142,482 22,616,295,914

7.1 Loans and advances Inside Bangladesh Continuous loan 981,843,528 1,826,091,835 Demand Loan 11,648,523,161 15,662,922,131 Fixed term loan 2,059,924,842 777,982,958 Staff loan - - Short Term Agri-credit and Microcredit 314,132,000 253,246,111

15,004,423,531 18,520,243,035 Outside Bangladesh - -

15,004,423,531 18,520,243,035

7.2 Maturity grouping of loans and advances including bills purchased and discounted Repayable on demand 214,195,937 1,758,086,985 Not more than one month 3,504,820,945 3,858,949,797 More than one month but not more than three months 8,427,615,396 10,057,139,721 More than three month but less than one year 4,560,678,411 5,957,986,439 More than one year but less than five years 1,758,575,039 763,704,281 More than five years 6,256,754 220,428,691

18,472,142,482 22,616,295,914

7.3 Analysis of significant concentration of loans and advances including bills purchased and discounted

Advances to allied concerns of Directors - - Advance to chief executive and other senior executives: Citi Country Officer - - Other senior executives and staff of the Bank - - - - Advances to customers' group (Note 7.4) 11,192,860,118 12,703,083,657 Industry wise (Note 7.5) 18,472,142,482 22,616,295,914 Geographical location wise (Note 7.6) 18,472,142,482 22,616,295,914 7.4 Number of clients with amount of outstanding and classified loans to whom loans and advances sanctioned more than 10% of total capital of the Bank Number of the clients 28 18 Amount of outstanding advances 11,192,860,118 12,703,083,657 Details are mentioned in the Annexure E 7.5 Particulars of loans and advances - Industry wise Agriculture (Dairy, Poultry, Nursery, Hatchery etc) 314,132,000 253,246,111 Readymade Garments 1,809,031,230 3,530,535,703 Pharmaceutical Industries 965,471,773 1,210,460,309 Chemical Industries 181,917,963 568,794,400 Fuel & Electricity 2,045,319,022 1,170,724,028 Agro based Industries 1,905,347,207 2,602,470,645 IT Sector 157,177,927 43,987,665 Telecommunication 1,894,819,893 2,186,951,204 Financial Corporation 1,133,929,843 2,520,562,116 Others 8,064,995,624 8,528,563,733 18,472,142,482 22,616,295,914

6.4 Category wise grouping of treasury bills and government bonds Treasury bills Held to Maturity Securities (HTM) 30 days Bangladesh Bank bills - - 91 day treasury bills - - 182 day treasury bills - - 364 day treasury bills - - 2 years treasury bills - - 5 year treasury bonds - - - -

Held For Trading Securities (HFT) 7 days Bangladesh Bank bills - - 30 days Bangladesh Bank bills - - 91 day treasury bills 742,581,211 568,748,021 182 day treasury bills 4,052,888,310 297,211,412 364 day treasury bills 2,505,597,856 1,205,226,580 2 years treasury bills - - 5 year treasury bonds - -

7,301,067,377 2,071,186,013

Total treasury bills 7,301,067,377 2,071,186,013

Government Bonds Held to Maturity Securities (HTM) 1 year bond - - 3 years bond - - 5 years bond - - 15 years bond - - 20 years bond - - - - Held For Trading Securities (HFT) 1 year bond - - 2 years bond 3,714,484,769 3,853,233,415 5 years bond 97,520,229 2,042,508,885 10 years bond 101,125,196 314,633,462 15 years bond - - 20 years bond - - 3,913,130,194 6,210,375,762

Total government bonds 3,913,130,194 6,210,375,762

11,214,197,571 8,281,561,775

Citibank, N.A.




of 8



Provision for current tax of has been made at 40% as prescribed by The Finance Act 2019 of the

accounting profit made by the Bank after considering some of the add backs to income and

disallowances of expenditure as per Income Tax Ordinance and Rules 1984 and in compliance with

paragraph 46 of IAS 12: Income Tax.

The tax authorities have audited the Bank’s tax returns for various accounting years whereby

they have demanded an additional amount of tax. The Bank has challenged this demand as it

believes the tax authority’s position is unjustified.

12.4.2 Provision for deferred tax

Deferred tax asset Balance as at 1 January 215,102,704 226,593,639 Add: Provision made during the year - 413,358 215,102,704 227,006,997 Less: Adjustment made during the year 51,184,960 11,918,523 Balance as at 31 December 163,917,744 215,088,474 Deferred tax liability Balance as at 1 January 9,347,105 541,043 Add: Provision made during the year - 8,806,062

9,347,105 9,347,105 Less: Adjustment made during the year for revaluation reserve 8,366,781 - Balance as at 31 December 980,324 9,347,105

12.5 Total expense recognised in the profit and loss account in employee benefits relating to the defined benefit plan

Current service cost 38,832,367 33,927,833

Interest cost 2,578,947 3,197,491 Expected returns on plan assets - - Past service cost - - Contribution to the defined benefit plan 41,411,314 37,125,324 12.5.1 Net asset/(liability) recognised on the balance sheet in respect of the defined benefit plan

Citibank, N.A. Bangladesh Branches Employees Gratuity Fund 655,077 (79,908,277) 12 .5.2 Post-employment defined benefit plans' principal actuarial financial assumptions

Rate of return on investments 9.15% 6.25% Rate of increase in pay 10.00%


31 December 2018


31 December 2018


31 December 2018


31 December 2018

12.3 Interest suspense account

Balance as at 1 January 58,226,517 58,226,517 Add: Amount transferred to "interest suspense" account during the year - - 58,226,517 58,226,517

Less: Amount of interest suspense recovered - - Amount written off during the year - - Interest waiver during the year - -

- -

Balance as at 31 December 58,226,517 58,226,517

12.4 Provision for taxation

Current tax (Note 12.4.1) 654,019,886 728,688,850 Deferred tax liability (Note 12.4.2) 980,324 9,347,105 655,000,210 738,035,95512.4.1 Provision for current tax Provision

Balance as at 1 January 728,688,850 611,929,850 Provision made during the year 766,266,993 746,530,241

1,494,955,843 1,358,460,091 Adjustments made during the year (840,935,957) (629,771,241)

Balance as at 31 December 654,019,886 728,688,850


31 December 2018


31 December 2018


31 December 2018

-

18 Interest income

Interest on loans and advances 1,310,938,967 1,338,534,985 Interest on placement with other banks and financial institutions 117,019,357 58,293,621 Interest on Reverse Repo - - Interest on balances with other banks and financial institutions 989,637 960,447 Interest on foreign currency balances 345,692,531 185,763,385

1,774,640,492 1,583,552,43819 Interest paid on deposits and borrowings

Interest on deposits 215,246,015 183,143,676 Interest on borrowings 84,335,879 119,403,089 Interest on Repurchase agreement (repo) - -

Interest on foreign bank accounts 299,581,894 302,546,765 20 Income from investments

Interest income from government securities (Note 20.1) 537,683,990 522,958,488 Capital Gain/( loss) on government securities (Note 20.2) - 2213,931 Revaluation gain/(loss) on government securities (Note 20.3) (92,420,303) (133,401,801) Dividend on investment in shares 7,500,000 7500,000 Gain on sale of investment in shares - -

452,763,687 399,270,618

20.1 Interest income from government securities

Interest income on treasury bills & Bangladesh Bank Bills 287,062,899 71,435,061 Interest income on treasury bonds 250,621,091 451,523,427

537,683,990 522,958,488

20.2 Capital Gain/( loss) on government securities

Capital gain on treasury bill - 1,523,196 Capital gain on treasury bonds - 690,735

- 2,213,931 Capital loss on treasury bill - - Capital loss on treasury bonds - -

- -

- 2,213,931

20.3 Revaluation gain/(loss) on government securities

Revaluation gain on treasury bill - - Revaluation gain on treasury bonds - - - - Revaluation loss on treasury bill (11,566,414) (4,010,920) Revaluation loss on treasury bonds (80,853,889) (129,390,881)

(92,420,303) (133,401,801)

(92,420,303) (133,401,801)21 Commission, exchange and brokerage

Commission income: L/C commission 169,621,794 203,569,353 Collection 57,753,136 72,833,984 Transfer 15,950,585 12,937,028 Service charge 32,900,765 3,571,100 Guarantee 9,560,851 8,116,51 Syndication 8,490,000 243,198,554 Arrangement fee - 1,035,533 Agency Fees 53,669,832 54,974,180 Others 347,946,963 600,236,244

Exchange income: Net profit from foreign currency dealings 588,659,123 650,252,040

936,606,086 1250,488,284


31 December 2018


31 December 2018


31 December 2018


31 December 2018


31 December 2018


31 December 2018


31 December 2018


31 December 2018

22 Other operating income

Gain/(loss) on sale of fixed assets (9,829,891) 774,271

Miscellaneous income/(expense) 49,500 16,287,771

(9,780,391) 17,062,042

23 Salaries and allowances

Salaries and allowances 446,237,130 41,82,90,688

Provident fund contribution 25,120,714 2,41,84,713

Gratuity 41,411,314 3,71,25,324

Bonus

Current year expense 54,428,729 5,56,41,115

Adjustment related to prior

year expense (15,866,076) (3,966,347)

Total salaries, bonus and

allowances 551,331,811 531,275,493

Less: Citi Country Officer's

(CCO) salary and allowances (24,715,590) (23,836,116)

Total salaries, bonus and

allowances excluding CCO's

salaries and allowances 526,616,221 507,439,377

24 Depreciation and repairs of bank's assets

Depreciation on fixed

assets (Annexure F) 59,022,320 60,234,212

Repairs and maintenance 22,718,213 17,952,217

81,740,533 78,186,429

25 Other expenses

Entertainment expenses - 78,102

Fuel and maintenance of vehicles 4,791,951 5,453,888

Membership entrance fee 2,627,700 538,200

Outsourced/contract staff costs 50,950,177 58,338,200

Professional fees 5,124,690 4,212,020

Seminar 9,113,952 14,349,581

Sponsorship, meeting and events 10,990,164 17,197,824

Training 4,002,342 11,214,827

Travelling expenses 4,196,104 3,066,944

IT expenses 5,983,834 6,488,827

Sundry expenses 38,142,892 37,560,396

169,897,620 198,560,835


31 December 2018


31 December 2018


31 December 2018


31 December 2018

16.4 Bills for collection

Bills for collection (Local) 197,096,544 445,040,357 Bills for collection (Foreign) 1,050,977,353 922,872,210

1,248,073,897 1,367,912,567 16.5 Others commitments

Documentary credits and short term trade related transactions 663,456,149 460,207,623 Forward assets purchased and forward deposits placed 2,827,750,430 4,766,715,415 Undrawn formal standby facilities, credit lines and commitments to lend - 585,054,412 Spot exchange rate contracts - - Forward exchange rate contracts - - Other exchange rate contracts - - 3,491,206,579 5,811,977,450

16.6 Others

Value of travelers' cheques on hand - - Value of Bangladesh Sanchaypatra on hand 255,925,000 328,925,000 Value of Bangladesh Bank USD bond on hand 225,027,450 222,376,950 Value of unprocessed cheques - -

480,952,450 551,301,95017 Income statement

Income: Interest, discount and similar income 1,774,640,492 1,58,35,52,438 Dividend income 7,500,000 75,00,000 Fees, commission and brokerage 347,946,963 60,02,36,244 Gains less losses arising from dealing securities 445,263,687 391,770,618 Gains less losses arising from investment securities - - Gains less losses arising from dealing in foreign currencies 445,263,687 391,770,618 Income from non-banking assets - - Other operating income 588,659,123 650,252,040 Profit less losses on interest rate changes - -

3,154,229,874 3,250,373,382 Expenses: Interest, fees and commission 299,581,894 302,546,765 Losses on loans and advances - - Administrative expenses 822,889,720 760,459,708 Other operating expenses 192,615,833 216,513,052 Depreciation on banking assets 59,022,320 60,234,212

1,374,109,767 1,339,753,737

Income over expenditure 1,780,120,107 1,910,619,645


31 December 2018


31 December 2018


31 December 2018


31 December 2018

11.3 Maturity wise grouping of deposits and other accounts (based on remaining maturity)

Deposit

from inter banks

Deposits

from others

2019

Total Total

2018

Repayable on demandRepayable within one monthRepayable over one month but within six monthsRepayable over six months but within one yearRepayable over one year but within five yearsRepayable over five years but within ten years

352,210,553 -

-

-

-

- 352,210,553

1,968,311,354 1,847,742,113

4,377,245,751

4,124,171,328

25,987,015,584

- 38,304,486,130

2,320,521,907 1,847,742,113

4,377,245,751

4,124,171,328

25,987,015,584

-

38,656,696,68

2,539,539,923 2,422,170,249

3,731,498,653

3,598,681,967

19,266,673,568

-

31,558,564,360

11.4 Bills payable

Inside Bangladesh 1,261,919,524 1,62,75,34,148 Outside Bangladesh - - 1,261,919,524 1,62,75,34,14811.5 Sundry deposits Deposit of Retention Quota for Exporters (ERQ) 1,123,865,458 936,137,586 Margin Deposits 651,461,451 1,103,748,282 Vostro Accounts 352,210,553 614,318,064 Special Foreign Currency Accounts - 18,373,671 Others 175,059,747 194,954,400

2,302,597,209 2,867,532,003

12 Other liabilities

Provision for loans and advances (Note 12.1) 413,129,926 422,015,959 Provision for off balance sheet exposures (Note 12.2) 227,419,975 268,719,958 Provision for balances with other banks (Nostro accounts) - - Interest suspense account(Note 12.3) 58,226,517 58,226,517 Unclaimed dividend - - Advance payment and unexplored discounts - - Liabilities to subsidiary companies - - Provision for taxation (Note 12.4) 655,000,210 738,035,955 Liability for tax, VAT and excise duty deducted at source 56,855,212 47,981,320 Foreign exchange revaluation loss 3,821,561 11,131,961 Interest payable 15,224,116 1,1436,435 Accounts payable 524,809,516 982,887,983 Provision for expenses 139,853,092 142,911,921 Unearned income 15,517,024 14,451,300 Bonus payable 55,755,231 55,487,657 Asset retirement obligation 8,141,245 8,141,245 Rent equalization reserve - 86,677,007 Lease liability 1,436,299,945 - Net deficit of defined benefit scheme (Note 12.5.1) - 79,908,277 3,610,053,570 2,927,720,332 12.1 Provision for loans and advances

Movement in General Provision for unclassified loans and advances Balance as at 1 January 260,641,313 239,228,915 Add: Provision made during the year: On general loans and advances 214,940 23,583,870 On Special Mention Account - - 260,856,253 262,812,785 Less: Provision no longer required 10,000,000 3,000,000 Balance as at 31 December 250,856,253 259,812,785 Movement in Specific Provision for classified loans Balance as at 1 January 162,203,174 162,113,674 Add: Recoveries of amounts previously written off - - Specific provision made during the year for other accounts 70,500 89,500

162,273,674 162,203,174 Less: Fully provided debt written off - - Recoveries and provisions no longer required - - Net charge to profit and loss account - -

Balance as at 31 December 162,273,674 162,203,174 Total provision on loans and advances 413,129,926 422,015,959

12.2 Provision for off balance sheet exposures

Balance as at 1 January 268,823,544 211,151,602 Add: Provision made during the year - 57,568,356 268,823,544 268,719,958 Less: Provision no longer required 41,403,569 - Balance as at 31 December 227,419,975 268,719,958


31 December 2018


31 December 2018

As at 1 January Current Service costInterest costPast Service costActuarial (gains)/lossesExperience (gains)/lossesBenefits paidAs at 31 December

12.5.5 Changes in the fair value of plan assets

323,983,792 293,760,516 38,832,367 33,927,833 19,036,357 18,645,257

- (74,228,693) 10,561,387

4,110,720 8,216,266 (17,415,306) (41,127,467)

294,319,237 323,983,792

As at 1 January Expected returns on planContributions by the Bank Return on plan assets greater/(lesser)than discount rateBenefits paidAs at 31 December

244,075,515 224,477,011 16,457,410 15,447,766

55,901,388 49,885,017

(4,044,693) (4,606,812) (17,415,306) (41,127,467)

294,974,314 244,075,515

Fair value of plan assets Balance with Bank 198,193,242 42,194,885 Treasury bills/bonds 96,781,072 201,880,630

294,974,314 244,075,515Defined benefit obligation Present value of funded obligations 294,319,237 323,983,792 Present value of unfunded obligations - -

294,319,237 323,983,792

Net (liabilities)/assets 655,077 (79,908,277)

12 .5.4 Changes in the present value of defined benefit obligations


31 December 2018

Expected rates of return

12.5.6 Summary

Defined benefit obligations (294,319,237) (323,983,792) Fair value of plan assets 294,974,314 244,075,515

Net assets/ (liabilities) 655,077 (79,908,277)

Actuarial (gains)/losses due to experience and assumptions (70,184,000) 15,168,199 Experience losses 4,110,720 82,16,266

Actuarial (gains)/losses (66,073,280) 23,384,465 12.6 Maturity wise grouping of other liabilities

On demand - - Within one month 859,017,222 1,322,860,058 Over one month but within three months 309,780,374 302,346,863 Over three months but within one year 541,265,317 781,770,631 Over one year but within five years 310,619,790 202,916,461

Over five years 1,589,370,867 317,826,319

3,610,053,570 2,927,720,332


31 December 2018


31 December 2018


31 December 2018

(A) Total risk weighted assets (RWA) 35,829,881,755 28,179,514,528 10% of risk weighted assets 3,582,988,176 2,817,951,453

(B) Required capital (Higher of RWA and 4,000,000,000) 4,000,000,000 4,000,000,000 Total capital held: Common Equity Tier 1 (CET 1 Capital) Fund deposited with Bangladesh Bank (Note 13.2) 4,898,563,931 4,840,865,887 Retained earnings 7,719,239,144 6,273,128,316 Actuarial gain/(loss) (69,455,065) (135,528,345) Deferred tax assets on specific provision (61,663,996) (61,637,206)

12,486,684,014 10,916,828,652 Tier 2 Capital General Provision 478,276,228 450,326,617 Gain on revaluation of HFT securities - 50% 12,354,072 12,354,072 Deductions (for 2018, 80% of the gain on revaluation of HFT securities) (12,354,072) (9,883,257)

478,276,228 452,797,432 (C) Total capital 12,964,960,242 11,369,626,084

Surplus capital (C-B) 8,964,960,242 7,369,626,084

Capital to Risk Weighted Assets Ratio (CRAR) 36.18% 40.35% Common Equity Tier-1 to RWA 34.85% 38.74%

13.2 Fund deposited with Bangladesh Bank as capital

The make-up of paid up capital is as follows: Capital maintained in FCY (USD 57,698,043.95) 4,898,563,931 4,840,865,887

4,898,563,931 4,840,865,887

14 Other reserve

Revaluation reserve on HTM securities Balance as at 1 January 12,646,084 732,000 Addition to revaluation reserve - 12,646,084 12,646,084 13,378,084

Adjustment from revaluation reserve (11,175,598) (732,000) Balance as at 31 December 1,470,486 12,646,084

Actuarial gain/(loss) Balance as at 1 January (135,528,345) (112,143,880)

Charge/(adjustment) for the year 66,073,280 (23,384,465)

Balance as at 31 December (69,455,065) (135,528,345) (67,984,579) (122,882,261)

15 Profit and loss account Balance as at 1 January 667,697,9305.00 5,625,274,330 Currency translation difference 544,0287.00 5,295,277

6,682,419,592.00 5,630,569,607 Withdrawal of lien of Capital - - Retained surplus for the year 1,036,819,552.00 1,046,409,698 Profit Remittance - -

Balance as at 31 December 7,719,239,144.00 6,676,979,305

16 Contingent liabilities 16.1 Acceptances and endorsements

Acceptance under letters of credit -Import 2,949,084,022 1,105,095,302 Acceptance under letters of credit -Export - - 2,949,084,022 1,105,095,302 16.2 Letters of guarantee

Letters of guarantee (Local) 228,656,162 608,045,105 Letters of guarantee (Foreign) 1,966,018,967 2,722,511,464

2,194,675,129 3,330,556,569 Balance for which the Bank is contingently liable in respect of guarantee issued favouring: Government 2,113,415,873 3,193,185,915 Banks and other financial institutions - 939,000 Others 81,259,256 136,431,654

2,194,675,129 3,330,556,569

16.3 Irrevocable letters of credit

Back to back L/C 740,608,87 778,617,142 Others 8,184,162,66 6,159,905,840

8,924,771,538 6,938,522,982


31 December 2018


31 December 2018


31 December 2018


31 December 2018


31 December 2018

13 Equity

The Bank’s approach to capital management is driven by a desire to maintain a strong capital base to support the

development of its business, to meet the regulatory capital requirements at all times and maintain good credit rating

13.1 Compliance with capital adequacy regulations

Capital requirements for the banks at a local level are set and maintained by Bangladesh Bank. The capital that the Bank

is required to hold is determined by its balance sheet and off balance sheet positions in accordance with guidelines and

various circulars on risk based capital adequacy, subject to a minimum threshold. These are explained in greater details in

note 13.1.1 below. The Bank has put in place processes and controls to monitor and manage capital adequacy, no breaches

were reported during the year.

As per section 13(4) of the Bank Company (amendment) Act, 2013, BRPD circular no. 11 dated 14 August 2008 and BRPD

circular no. 18 dated 21 December 2014, the required value of the capital and reserves of the Bank at the close of the

business on 31 December 2019 is Tk. 4,000,000,000 or 10% of risk weighted assets whichever is higher. Accordingly the

required value of the capital and reserves of the Bank at the close of the business on 31 December 2019 was Tk.

4,000,000,000 (2018: Tk. 4,000,000,000). The Bank’s capital was greater than the amount required above.

13.1.1 The calculation of the Capital to Risk Weighted Assets Ratio (CRAR)) has been done as per BRPD circular no. 18 dated 21

December 2014 and guidelines on Risk Based Capital Adequacy (Basel-III) as of December 2014 of Bangladesh Bank. The

details of the capital as of 31 December are as follows:

12.5.3 Defined benefit plans

The calculation of the net liability under the Bank's defined benefit plan is set out below together with the expected rates of return and plan assets used to measure the net defined benefit plan cost in each subsequent year.

10.00%



Citibank, N.A.




of 8

Particulars

AssetsCash in hand

financial institutions

Investments 148,400

Loans and advances

Other assets

Non-banking assets

Total assets

Liabilities

Total liabilitiesNet Liquidity Gap

Annexure - B

-

-

6,000,000

-

-

-

-

-

-

-

-

- ---- -

-

-

Balance with Bangladesh Bank, agent bank, other banks and

Money at call or short notice

Fixed assets including premises, furniture and fixtures

Borrowings from Bangladesh Bank, other banks, financialinstitutions and agents

Deposits and other accounts*

Provision and other liabilities

Maturity up to1 month

Taka

Maturity within1 to 3 months

Taka

Maturity within3 to 12 months

Taka

Maturity within1 to 5 years

Taka

Maturity over5 years

TakaTotalTaka

Citibank, N.A. Bangladesh BranchesLiquidity Statement

(Asset and Liability Maturity Analysis)as at 31 December 2019

*Maturity analysis of deposits and other accounts have been done based on trend analysis which has been performed based on clearing and cash withdrawals from demand deposit accounts net of withdrawals from time deposit accounts of the Bank.

187,451,538

17,817,034,221

3,719,016,882

235,229,993

21,958,881,034

3,293,950,200

4,168,264,020

859,017,222 8,321,231,442

13,637,649,592

187,451,538

6,827,683,454 26,172,917,675 1,528,200,000 -

1,389,588,142 11,220,345,971 2,941,780,530 6,882,828,899

120,953,357 - 120,953,357 - -

1,758,575,039 6,256,754 18,472,142,482 8,427,615,396 4,560,678,411

454,537,754 1,061,626,798 1,939,113,540 20,656,956 167,062,039

3,723,654,292 7,901,567,006 58,112,924,563 12,918,252,882 11,610,569,349

- - 3,296,355,814 1,060,916 1,344,698

25,987,015,584 - 38,656,696,683 4,377,245,751 4,124,171,328

310,619,790 1,589,370,867 3,610,053,570 309,780,374 541,265,317 26,297,635,374 1,589,370,867 45,563,106,067 4,688,087,041 4,666,781,343

8,230,165,841 6,943,788,006 (22,573,981,082) 6,312,196,139 12,549,818,496

2019 2018

AUD

CAD

HKD

USD

CHF

GBP

EUR

EUR

DKK

SEK

USD

USD

NOK

SGD

USD

JPY

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

Current a/c

FC amount Exchange rate Equivalent taka FC amount Exchange rate

Foreign currency

Equivalent taka Deposit typeName of the bank

Citibank, N.A.

Bangladesh Branches

Balance with other banks and financial institutions (Outside Bangladesh)

as at 31 December 2019

Annexure - C

Citibank, Australia

Citibank, Canada

Citibank, Hong Kong

Citibank, Ireland

Citibank, Karachi

Citibank, London

Citibank, London

Citibank, London

Citibank, London

Citibank, London

Citibank, Mumbai

Citibank, New York

Citibank, Norway

Citibank, Singapore

Citibank, Sri Lanka

Citibank, Tokyo

Citibank, Singapore

3,005

420

4,424

310,886

210,915

2,726

69,119

253,240

4,329

6,961

2,800,903

68,323,985

1,225

2,188

26,718

22,641,825

40,500,00

59.1243

61.6730

10.7138

95.5537

83.9000

84.6022

105.9741

95.5537

12.8002

9.2885

83.9000

83.9000

9.5815

61.0759

83.9000

0.7566

83.9000

177,676

25,894

47,400

29,706,295

17,695,797

230,646

73,24,810

24,198,020

55,406

64,653

234,995,782

5,732,382,360

11,738

1,33,634

2,241,671

17,130,171

3,397,950,000

9,464,371,953

Current a/c

Time placement USD

1,409 59.4045 83,682

460 64.9405 29,884

4,471 10.9034 48,751

969,391 95.0201 92,111,574

297,148 84.9000 25,227,891

4,152 87.3816 3,62,838

72,536 111.4058 8,080,892

766,428 95.0201 72,826,025

4,896 12.7210 62,287

6,961 9.1098 63,409

1,690,623 84.9000 143,533,912

101,960,185 84.9000 8,656,419,744

702 9.6436 6,770

1,364 62.9542 85,851

2,365 84.9000 200,790

16,369,218 0.7778 12,731,863

80,000,000 84.9000 6,792,000,000

15,803,876,163

Citibank, N.A.

Bangladesh Branches

Financial Highlights as at 31 December 2019

Sl. no. In BD 2019 2018

Annexure - A

*Weighted Average interest on Deposit as reported to BBK as at 31 December.

1 Capital - fund deposited with Bangladesh Bank Taka 4,898,563,931 4,840,865,887

2 Total capital Taka 12,964,960,242 11,369,626,084

3 Capital surplus/deficit Taka 8,964,960,242 7,369,626,084

4 Capital adequacy ratio (required rate is 10%) % 36.18% 40.35%

5 Total assets Taka 58,112,924,563 52,412,826,583

6 Total deposits Taka 38,656,696,683 31,558,564,360

7 Total loans and advances Taka 18,472,142,482 22,616,295,914

8 Total contingent liabilities and commitments Taka 19,288,763,615 19,105,366,820

9 Advances/deposit ratio % 47.79% 71.66%

10 Classified advances as (%) of total advances % 1.19% 0.97%

11 Net profit after tax and provisions Taka 1,036,819,552 1,046,409,698

12 Amount of classified loans during current year Taka 220,452,691 220,428,691

13 Amount of provisions against classified loans Taka 162,273,674 162,203,174

14 Provision surplus / (shortage) Taka 72,964,166 35,855,113

15 Interest suspense account Taka 58,226,517 58,226,517

16 Interest bearing assets Taka 52,352,231,211 45,528,819,118

17 Non-interest bearing assets Taka 5,760,693,352 6,884,007,465

18 Return on investment (ROI) % 8.66% 9.21%

19 Return on assets (ROA) % 1.88% 2.29%

20 Incomes from Investment Taka 452,763,687 399,270,618

21 Cost of fund* % 0.39% 0.31%

For the year ended 31 December

30.2.2 Transactions with Vostro Accounts

Some branches of Citibank maintains vostro accounts with Citibank Bangladesh for interbranch transaction settlement. The

disclosure of the year end balance is considered to be the most meaningful information to represent transactions during the

year. As at year end the balance with all vostro accounts (including other branches of Citibank) are given in the Annexure J.

30.2.3 Transactions with Nostro Accounts

Citibank Bangladesh maintains nostro accounts with only other Citibank branches. The disclosure of the year end balance is

considered to be the most meaningful information to represent transactions during the year. As at year end the balance with all

nostro accounts are given in the Annexure C.

30.2.4 Transactions with overseas affiliates

Citibank Bangladesh provides trade related processing support services for transactions of Citibank Hong Kong and Citibank

Singapore. Fee earned from such services in 2019 amounted to Tk. 581,804 (2018: Tk. 474,095) from Citi Hong Kong and Tk.

3,800,549 (2018: Tk. 2,678,004) from Citi Singapore, both of which are included in the fee revenue disclosed in the profit and

loss account. These transactions arose in the ordinary course of business and are on substantially the same terms as for

comparable transactions with third party counterparties.

Citi Bangladesh performed certain swift related functions for its overseas affiliates. The rate charged by Citibank Bangladesh

to its affiliates is related to issuance of manager’s check or for the telegraphic transfer purposes using SWIFT payment. Fee

received from such service in 2019 amounted to Tk. 3,000 from Citi Berhad, Tk. 4,167,000 from Citi Ireland, Tk. 232,000 from

Citi Mumbai and Tk. 128,000 from Citi Colombo and Citi London Tk. 1,000.

In the normal course of banking business, Citi enters into foreign exchange transactions with its affiliates to hedge its foreign

exchange exposures. The transactions are done at market rates and are conducted on arm’s length basis.

30.2.5 Transactions with post employment benefit plans

The Bank has two post employment benefit schemes, the nature of which is disclosed in note 3.14, Post employment benefits. The amount

payable to these schemes or due from these schemes to the Bank as at 31 December 2019 is disclosed in note 9 and note 12. The total

contribution to these schemes in 2019 by the Bank is disclosed in Note 12.5.5.

The responsibility for fund management and administration of these schemes rest with the Trustee's of these schemes, however, these

functions are delegated to the Bank's Human Resources Department. The Bank does not charge these schemes any fees for the day to

day fund management or administrative services.

As at 31 December 2019 the provident fund has placed deposit of Tk. 37,873,482 (2018: Tk. 18,091,805) and the gratuity fund had placed

deposits of Tk. 94,377,790 (2018: Tk. 42,194,885) with the Bank.

Interest expense incurred by the Bank on deposits placed by the provident fund in 2019 amounted to Tk. 237,690 (2018: Tk. 79,178) and

on deposit placed by gratuity fund in 2019 amounted to Tk. 597,165 (2018: Tk. 321,678), both of which are included in the interest expense

disclosed in the profit and loss account. These transactions arose in the ordinary course of business and are on substantially the same

terms, including interest rates and security, as for comparable transactions with third party counterparties.

31 Credit Rating of the Bank

In accordance with the dispensation given by the Bangladesh bank, the Bank, being a branch of a foreign bank is not required to

have credit rated, rather it can use the Credit Rating of its Parent Entity. The Parent Entity’s (Citibank, N.A.) ratings as of 31

December 2019:

32 General

ParticularsMoodyStandard & PoorFitch

Long-Term Bank DepositsAa3A+AA-

32.1 Exchange rates

The assets and liabilities as at 31 December in foreign currencies have been converted to Taka at the following rates:

32.2 For capital conversion, the Bank applies the closing rate as published by the Bangladesh Bank. The exchange rate is Tk. 84.9

(2018: Tk.83.9) 32.3 Figures of previous year have been rearranged whenever considered necessary to conform to current year's presentation. 32.4 Figures appearing in these financial statements have been rounded off to the nearest Taka, unless otherwise indicated. 33 Number of employees The number of employees engaged for the whole year or part thereof who received a total yearly remuneration of Tk. 36,000 or above were 142 (2018: 154). 34 Highlights on the overall activities Highlights on the overall activities of the Bank have been furnished in Annexure - A. 35 Events after the balance sheet date There are no material events that had occurred after reporting period to the date of issue of these financial statements, which could affect the figures stated in the financial statements

AUD =CAD =HKD =USD =CHF =GBP =EUR =DKK =SEK =NOK =SGD =JPY =


31 December 2018

59.4045 64.9405 10.9034

84.9000 87.3816 111.4058 95.0201 12.7210 9.1098 9.6436

62.9542 0.7778

59.1243 61.6730 10.7138

83.9000 84.6022 105.9741 95.5537 12.8002 9.2885 9.5815

61.0759 0.7566

S. H. Aslam Habib

Chief Financial Officer, Bangladesh

N. Rajashekaran

Managing Director and


29 Contingencies

There are no material contingent liabilities at the year end, other than those disclosed as "Off Balance Sheet Items" in the

balance sheet and detailed in notes below.

29.1 Claim against the bank not acknowledged as loan for which the bank is contingently liable in respect of guarantees

issued favouring:

30 Related party transaction

30.1 Transactions with key management personnel

The key management personnel of the Bank for the purposes of IAS 24 are defined as those persons having authority and

responsibility for planning, directing and controlling the Bank, being members of the Board of Directors of the Group, Group

Managing Directors, and close members of their families and companies they control, or significantly influence, or for which

significant voting power is held. Citibank N.A. Bangladesh Branches, not being incorporated locally, operate in Bangladesh

under the Banking license issued by Bangladesh Bank and therefore for this Bank the key management personnel, who do

qualify as related party under IAS 24, refer to Citibank officials located outside Bangladesh.

There were no transactions between the Bank and the key management personnel of the Bank in 2019 (2018 - nil).

30.2 Transactions with other related parties

30.2.1 Transactions with Citigroup Global Markets Limited (New York)

Citigroup Global Markets Limited (hereinafter called CGML New York) is a subsidiary of Citigroup Inc. which is also the

parent company of Citibank N.A. CGML New York operates the below mentioned accounts in respect of portfolio

investment in Bangladesh. The disclosure of the year end balance is considered to be the most meaningful information to

represent transactions during the year. These transactions arose in the ordinary course of business and are on

substantially the same terms, including interest rates and security, as for comparable transactions with third party

counterparties.

The following balances were outstanding as at 31 December:

Government Bank and financial institution Others

- - -

-

- - -

-


31 December 2018

NITA (Non-resident Investors Taka Account) Foreign Currency Account

13,974,817 11,590,675 20,043,985 7,426,888 34,018,802 19,017,563


31 December 2018

28 Cash and cash equivalent

Cash in hand (including foreign currencies) 187,451,538 137,927,760 Balance with Bangladesh Bank and its agent bank (including foreign currencies) 10,078,802,356 9,480,760,009 Balance with other banks and financial institutions 16,094,115,319 10,171,377,317 Money at call and short notice - - 91 days treasury bills 742,581,211 568,748,021 Reverse Repo - - Bangladesh Bank bill - -

Prize bond 148,400 363,800

27,103,098,823 20,359,176,907

In BDT 2019 2018

Profit before tax as perprofit and loss account 1,831,238,236 1,832,377,919Income tax using thetax rate at 40.0% 732,495,294 40.0% 732,951,168Factors affecting the tax chargefor current periodNon-deductible expenses 5.41% 99,152,040 6.95% 128,396,768Deductible expenses -3.02% (55,245,384) -1.19% (20,190,010)Tax exempted income 0.00% - -0.05% (885,573)Dividend income -0.08% (1,500,000) -0.09% (1,500,000)Movement of temporary difference 2.80% 51,184,960 0.71% 11,516,641Adjustment for prior years -1.73% (31,668,226) -3.64% (64,320,773)

Total income tax expenses 43.38% 794,418,684 42.69% 785,968,221

% Amount %

27 Reconciliation of effective tax rate

Amount

26 Tax expense Current tax expenses: Current year 774,901,950 838,772,353 Adjustments for prior years (31,668,226) (64,320,773) 743,233,724 774,451,580 Deferred tax (income)/expenses 51,184,960 11,516,641 794,418,684 785,968,221



Citibank, N.A.




of 8

Annexure - H

Citibank, N.A.Bangladesh Branches

Bi-weekly average balance of Bangladesh Bank statementfor the month of December 2019

Average balance heldwith Bangladesh Bank

Date Actual balance held with Bangladesh Bank

(Taka)

15-Dec-19

16-Dec-19

17-Dec-19

18-Dec-19

19-Dec-19

20-Dec-19

21-Dec-19

22-Dec-19

23-Dec-19

24-Dec-19

25-Dec-19

26-Dec-19

27-Dec-19

28-Dec-19

29-Dec-19

30-Dec-19

31-Dec-19

2,423,529,572

2,423,529,572

2,664,162,374

2,544,354,799

2,531,103,328

2,531,103,328

2,531,103,328

2,736,384,467

2,958,186,183

2,936,425,919

2,936,425,919

3,401,090,193

3,401,090,193

3,401,090,193

3,409,319,440

2,981,554,933

2,981,554,933 2,870,118,157


Reconciliation between Bangladesh Bank's statement and Banks' statementas at 31 December 2019

Annexure - I

As per

Bangladesh

Bank statement

As per Bank's

general ledger

Reconciling

difference

Taka Taka Taka

Local currency

Foreign currency

As per

Bangladesh Bank

statement

Reconciling

difference

USD USD Taka USD

Total

As per

Bangladesh Bank

statement

Reconciling

difference

GBP GBP Taka GBP

GBP clearing account

Bank credited but Bangladesh Bank had not debited

Bank debited but Bangladesh Bank had not credited

Bangladesh Bank credited but Bank had not debited

Bangladesh Bank debited but the bank had not credited

As per

Bangladesh Bank

statement

Reconciling

difference

EUR EUR Taka EUR

EUR clearing account -

Bank Credited but Bangladesh Bank had not debited

Bank Debited but Bangladesh Bank had not credited

Bangladesh Bank credited but Bank had not debited

Bangladesh Bank debited but the bank had not credited

Total (Taka)

As per Bank's general ledger



In order to comply with the CRR and SLR requirements, the Bank considers the actual balances held with Bangladesh Bank according to their (Bangladesh Bank) books of accounts. However, when preparing the statutory accounts the Bank considers the actual balances held with Bangladesh Bank according to the Bank's books of accounts. This results in reconciling differences between the Bank's statutory accounts and CRR and SLR requirements.

-

-

-

-

-

-

-

-

-

-

-

Bangladesh Bank DhakaBangladesh Bank RTGS SettlementBangladesh Bank Chittagong

USD clearing accountUSD capital account

Bank credited but Bangladesh Bank had not debitedBank debited but Bangladesh Bank had not creditedBangladesh Bank credited but Bank had not debited Bangladesh Bank debited but the bank had not credited

Bank Credited but Bangladesh Bank had not debitedBank Debited but Bangladesh Bank had not creditedBangladesh Bank credited but Bank had not debited Bangladesh Bank debited but the bank had not credited

22,206 22,206 2,473,823

1,136,571 1,136,571 107,997,043

6,833,494,518

2,863,929,377

-

117,625,556

2,981,554,933

3,127,681,262

-

117,626,576

3,245,307,838

(263,751,885)

-

(1,020)

(263,752,905)

296,086,382

(290,231,829)

-

(269,607,459)

(263,752,905)

26,609,509 57,698,044

84,307,553

21,489,514 57,698,044

79,187,558

1,824,459,721 4,898,563,931

6,723,023,652

5,119,995 -

5,119,995

2,949,116 (1,500,000) 8,646,874

(4,975,995)

5,119,995


Balance from other banks (Outside Bangladesh)as at 31 December 2019

Annexure - J

FC amount Exchange rate Equivalent taka FC amount Exchange rate

2018

Name of the bank Account type

Foreign

currency

2019

336,565,711

Equivalent taka

352,210,553

Citibank, Mumbai

Citibank, Colombo

Citibank, New York Foreign Exchange

Citibank, London

Citibank Europe Plc.

Citibank, Japan Ltd.

Citibank, Berhad Ltd.

Vostro A/C

Vostro A/C

Vostro A/C

Vostro A/C

Vostro A/C

Vostro A/C

Vostro A/C

USD

USD

BDT

BDT

BDT

BDT

BDT

370,831

498,274

319,528

112,219,068

164,318,131

74,090

1,492,686

84.9000

84.9000

1.0000

1.0000

1.0000

1.0000

1.0000

31,483,591

42,303,459

319,528

112,219,068

164,318,131

74,090

1,492,686

2,925,840

134,312

228,150

30,528,132

47,234,528

74,090

1,754,055

83.9000

83.9000

1.0000

1.0000

1.0000

1.0000

1.0000

245,477,979

11,268,777

228,150

30,528,132

47,234,528

74,090

1,754,055

Annexure - G


Calculation of deferred tax assets and liability

IN BDT Book value Permanent difference Accounting Base Tax base

Taxable (deductible) temporary diff

Deferred tax (asset) liability

Balances as at 31 December 2019

Vehicles

Furniture and fixtures

Office equipment

Computer

Specific provision

Unrealised MTM loss on Treasury bills/ bonds

Gratuity provision

Closing balance as at 31 December

6

74,217,884

27,193,355

19,542,159

(162,273,674)

(92,420,303)

41,411,314

(92,329,259)

-

-

-

-

-

-

-

-

6

74,217,884

27,193,355

19,542,159

(162,273,674)

(92,420,303)

41,411,314

(92,329,259)

3,101,788

52,072,240

197,603,910

8,785,779

-

-

55,901,388

317,465,105

(3,101,782)

22,145,644

(170,410,555)

10,756,380

(162,273,674)

(92,420,303)

(14,490,074)

(409,794,364)

(1,240,713)

8,858,257

(68,164,222)

4,302,552

(64,909,470)

(36,968,121)

(5,796,029)

(163,917,745)

Annexure - G


Calculation of deferred tax assets and liability

IN BDT Book value Permanent difference Accounting Base Tax base

Taxable (deductible) temporary diff

Deferred tax (asset) liability

Balances as at 31 December 2018

Vehicles


Office equipment

Computer

Specific provision

Unrealised MTM loss on Treasury bills/ bonds

Gratuity provision

Closing balance as at 31 December

5

75,225,533

64,998,549

11,556,556

(162,203,174)

(258,157,112)

(36,935,910)

(305,515,553)

-

-

-

-

-

-

-

-

5

75,225,533

64,998,549

11,556,556

(162,203,174)

(258,157,112)

(36,935,910)

(305,515,553)

3,877,234

70,284,156

195,201,866

12,551,113

-

-

(49,885,017)

232,029,352

(3,877,229)

4,941,377

(130,203,317)

(994,557)

(162,203,174)

(258,157,112)

12,949,107

(537,544,905)

(1,550,892)

1,943,738

(52,119,026)

(397,823)

(64,881,270)

(103,262,845)

5,179,643

(215,088,474)

Figures in Taka


Schedule of Treasury Bill/Treasury Bonds as at 31 December 2019

Annexure - D

Script No Type Face valueBooking

date

Amortized Cost (Bills)

Maturity

date

Market

value Gain/(Loss)

BD0936433202

BD0936433202

BD0936441205

BD0936450206

BD0936450206

BD0936402207

BD0918204209

BD0918204209

BD0918204209

BD0936405200

BD0936405200

BD0918207202

BD0918210206

BD0936411208

BD0918214208

BD0918223209

BD0909133201

BD0909134209

BD0909135206

BD0918235203

BD0918235203

BD0936439209

BD0936446204

BD0909147201

BD0918250202

BD0918250202

BD0909150205

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

Treasury Bill

150,000,000

150,000,000

500,000,000

100,000,000

150,000,000

400,000,000

750,000,000

750,000,000

500,000,000

76,200,000

500,000,000

300,000,000

500,000,000

120,000,000

200,000,000

100,000,000

200,000,000

100,000,000

50,000,000

200,000,000

100,000,000

150,000,000

300,000,000

200,000,000

400,000,000

300,000,000

200,000,000

14-Jan-19

14-Jan-19

13-Mar-19

27-Nov-19

13-May-19

8-Jul-19

15-Jul-19

15-Jul-19

15-Jul-19

22-Jul-19

22-Jul-19

29-Jul-19

8-Aug-19

19-Aug-19

2-Sep-19

9-Sep-19

7-Oct-19

14-Oct-19

21-Oct-19

21-Oct-19

21-Oct-19

11-Nov-19

9-Dec-19

17-Dec-19

30-Dec-19

30-Dec-19

30-Dec-19

13-Jan-20

13-Jan-20

9-Mar-20

11-May-20

11-May-20

6-Jul-20

13-Jan-20

13-Jan-20

13-Jan-20

20-Jul-20

20-Jul-20

27-Jan-20

6-Feb-20

17-Aug-20

2-Mar-20

9-Mar-20

6-Jan-20

13-Jan-20

20-Jan-20

20-Apr-20

20-Apr-20

9-Nov-20

7-Dec-20

17-Mar-20

29-Jun-20

29-Jun-20

30-Mar-20

149,777,266

149,774,813

496,345,954

97,491,322

146,996,655

385,837,532

748,173,418

748,168,124

498,773,963

73,312,101

481,218,900

298,449,285

496,156,989

114,242,386

197,323,644

98,463,689

199,767,445

99,763,572

49,819,447

195,659,293

97,815,554

141,353,912

279,536,098

197,097,183

385,475,447

288,830,610

196,440,549

149,614,048

149,614,048

493,076,722

97,312,984

145,969,476

384,525,441

748,070,242

748,070,242

498,713,495

73,029,750

479,197,837

298,391,114

496,316,203

114,305,805

197,515,779

98,615,344

199,762,919

99,742,699

49,801,723

195,501,753

97,750,876

140,239,721

278,712,023

196,903,776

385,110,435

288,832,826

196,370,095

(163,218)

(160,764)

(3,269,233)

(178,338)

(1,027,180)

(1,312,091)

(103,176)

(97,882)

(60,468)

(282,351)

(2,021,064)

(58,172)

159,214

63,420

192,135

151,656

(4,526)

(20,873)

(17,724)

(157,540)

(64,678)

(1,114,191)

(824,075)

(193,407)

(365,011)

2,217

(70,455)

7,446,200,000 7,312,065,150 7,301,067,377 (10,997,773)

Script No Type Face valueBooking

date

Maturity

date

Market

value Gain/(Loss)

3,970,000,000 3,992,101,914 3,913,130,194 (78,971,720)

Purchase Price(Bonds)

BD0921251106

BD0920211101

BD0920291103

BD0920231026

BD0920231026

BD0921341055

BD0920011022

BD0920011022

BD0920011022

BD0920111020

BD0920111020

BD0921251023

BD0921251023

BD0921251023

BD0921011021

BD0921081024

BD0921081024

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

Treasury Bond

10,000,000

80,000,000

10,000,000

600,000,000

200,000,000

100,000,000

150,000,000

150,000,000

1,000,000,000

120,000,000

250,000,000

150,000,000

300,000,000

200,000,000

250,000,000

250,000,000

150,000,000

4-Dec-19

22-Mar-18

27-Nov-19

4-Apr-18

20-Feb-19

8-Aug-19

5-Sep-18

5-Sep-18

18-Oct-18

2-Jan-19

6-Feb-19

3-Apr-19

8-May-19

8-May-19

7-Aug-19

4-Sep-19

6-Nov-19

5-Jan-21

8-Dec-20

3-Mar-20

4-Apr-20

4-Apr-20

9-Mar-21

4-Jul-20

4-Jul-20

4-Jul-20

7-Nov-20

7-Nov-20

6-Mar-21

6-Mar-21

6-Mar-21

3-Jul-21

4-Sep-21

4-Sep-21

10,072,990

87,448,640

9,995,551

602,137,800

201,547,200

97,606,300

152,769,600

151,791,600

1,023,980,999

118,312,920

245,221,250

148,406,400

295,730,100

196,782,400

248,542,250

250,405,255

151,350,659

10,134,320

80,980,595

10,010,281

595,997,744

198,665,915

97,520,229

147,809,571

147,809,571

985,397,140

115,742,022

241,129,213

145,414,931

290,829,861

193,886,574

249,005,923

251,747,690

151,048,614

61,330

(6,468,046)

14,731

(6,140,056)

(2,881,285)

(86,071)

(4,960,029)

(3,982,029)

(38,583,859)

(2,570,898)

(4,092,037)

(2,991,469)

(4,900,239)

(2,895,826)

463,673

1,342,435

(302,045)

(89,969,493) 11,214,197,571 11,304,167,064 11,416,200,000

Annexure-F

WrittenParticulars

Own Assets

Additions down value

during Rate of as atBalance

as at1 January the year

Adj./Disposalduring

the year

Balanceas at

31 December dep.

Balanceas at

1 January

Chargedduring

the year

Balanceas at

31 December 31 December

Taka Taka Taka Taka % Taka Taka Taka Taka Taka

Cost Depreciation


Schedule of fixed assets including premises, furniture and fixturesas at 31 December 2019

Adj./Disposalduring

the year

288,420,142.00

279,892,685

30,365,526

598,678,353


Office equipment

Vehicle

4,561,188.00

33,547,810

-

38,108,998

(35,727,577.00)

(18,532,211)

-

(54,259,788)

257,253,753.00

294,908,284

30,365,526

582,527,563

10-33.33

10-33.33

20

213,212,053.00

203,404,207

30,365,520

446,981,780

28,617,420.00

30,404,900

-

59,022,320

(28,398,102.00)

(16,031,792)

-

(44,429,894)

213,431,371.00

217,777,315

30,365,520

461,574,206

43,822,382.00

77,130,969

6

120,953,357


Annexure-F

WrittenParticulars

Own Assets

Additions down value

during Rate of as atBalance

as at1 January the year

Adj./Disposalduring

the year

Balanceas at

31 December dep.

Balanceas at

1 January

Chargedduring

the year

Balanceas at

31 December 31 December

Taka Taka Taka Taka % Taka Taka Taka Taka Taka

Cost Depreciation

Schedule of fixed assets including premises, furniture and fixturesas at 31 December 2018

Adj./Disposalduring

the year

288,355,573

252,657,401

30,365,526

571,378,500


Office equipment

Vehicle

-

31,183,375

-

31,183,375

-

(4,100,200)

-

(4,100,200)

288,355,573

279,740,576

30,365,526

598,461,675

10-33.33

10-33.33

20

182,719,051

175,701,296

30,365,521

388,785,868

30,429,881

29,804,331

-

60,234,212

-

(2,226,604)

-

(2,226,604)

213,148,932

203,279,023

30,365,521

446,793,476

75,206,641

76,461,553

5

151,668,199

Annexure-E

Citibank, N.A.Bangladesh BranchesDetails of Large Loan

as at 31 December 2019

28

24,299,572,231

-

-

18

12,703,083,657

-

-

Number of clients

Amount of outstanding advances (Taka)

Amount of classified advances (Taka)

Measures taken for recovery (Taka)

Client-wise break up is as follows:

2019

Taka

2018

Taka

Funded Non Funded Total

Amount outstanding

2018

Fundedoutstanding

Name of clientsSl. No.

2019

Govt. of the People's Republic of Bangladesh

China General Nuclear Power Corp

Grameenphone Limited

British American Tobacco Bangladesh Company Limited

Syngenta Bangladesh Limited

C.P. Bangladesh Company Ltd.

Nestle Bangladesh Limited

Khulna Power Company Limited

International Beverage Private Limited

Banglalink Digital Communications Ltd.

Pacific Jeans Group

Novartis Bangladesh Limited

Square Group

Lafargeholcim Bangladesh Limited

MJL Bangladesh Limited

M & J Group

Standard Group

Pran Group

Robi Axiata Limited

Huawei Technologies Bangladesh Ltd.

Incepta Group

Bayer Cropscience Limited

BRAC

Renata Ltd.

Godrej Group

Ananta Apparels Limited

MBM Garments Limited

Heidelberg Cement

YKK Bangladesh Pte Limited

Youngone Group

Regency Group

-

-

-

-

951,094,806

-

-

1,136,593,542

140,386,571

-

-

965,471,773

1,169,467

1,129,814

908,725,481

386,285,650

153,737,500

601,786,219

1,408,021,806

-

-

507,386,111

1,019,750,000

-

238,047,689

356,703,125

275,214,992

1,566,870,000

-

342,698,285

231,787,288

-

317,061,938

330,894,197

1,392,411,638

2,339,436,590

-

352,651,422

917,597,417

764,601,399

-

736,124,308

72,779,335

134,653,491

-

408,212,317

1,500,073,619

92,575,121

161,345,511

553,147,697

36,631,205

260,960,708

53,917,700

-

1,105,040,899

517,123,778

-

653,492,065

34,874,820

256,510,239

500,000

114,094,697

-

317,061,938

330,894,197

1,392,411,638

3,290,531,396

-

352,651,422

2,054,190,959

904,987,970

-

736,124,308

1,038,251,108

135,822,958

1,129,814

1,316,937,798

1,886,359,269

246,312,621

763,131,730

1,961,169,502

36,631,205

260,960,708

561,303,812

1,019,750,000

1,105,040,899

755,171,467

356,703,125

928,707,057

1,601,744,820

256,510,239

343,198,284

345,881,985

-

-

-

625,539,718

1,047,250,389

824,103,611

-

374,100,833

-

763,704,281

-

1,210,382,032

1,204,318

639,028,072

796,623,194

565,299,317

248,151,756

1,409,106,112

1,415,225,000

-

-

629,482,935

1,017,218,750

78,277

369,260,921

767,324,140

-

-

-

-

-

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25

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31

12,703,083,657 24,299,572,23113,106,712,11311,192,860,118Total

Citibank, N.A. (Bangladesh Branches) Report and financial ......As per Banking Regulation and Policy...

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Transcript of Citibank, N.A. (Bangladesh Branches) Report and financial ......As per Banking Regulation and Policy...