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Message from the Chairman

Bismillahir Rahmanir Rahim

Distinguished Shareholders:

Assalamu Alikum,

It gives me immense pleasure to welcome you all at the 25th Annual General Meeting of GSP Finance Company (Bangladesh) Limited. On behalf of the Board of Directors, I would like to express my sincere thanks to the respected shareholders for their support and co-operation towards the Company during the year and I also extend my thanks to the honorable members of the Board of Directors for their presence, active support and co-operation for the growth of the company.

GSP Finance Company (Bangladesh) Limited has a long successful history of professionalism & high standard of business ethics which is based on a well-developed culture of accountability, transparency, fairness and good governance. Our company has been able to build resilience power to overcome any kind of stress emanating from external & internal factors.

Good governance and sound ethical practices are strongly ingrained in our culture. GSPB maintain zero tolerance on integrity issues. We have a very strong, experienced and diverse Board with a good balance of skills and competence.

GSP Finance Company (Bangladesh) Limited maintains fair, transparent and sound management. It has well designed management structure having professional experience and relevant training with clearly defined roles for different departments and delegation of authority at different levels.

The economy of Bangladesh is a developing market economy. It’s the 39th largest in the world in nominal terms and 29thlargest by purchasing power parity. It is classified among the next eleven emerging market middle income economies anda frontier market. In the first quarter of 2019, Bangladesh’s was the world’s seventh fastest growing economy with a rate of 7.3% real GDP annual growth.

The banking sector is the key player of the economic activities of any countries. Banking sector has already been suffering heavily due to NPLs and unfortunately the outbreak may increase the level of NPLs in coming days.

Bangladesh money market has been volatile due to the deepening problems in the banking sector. Liquidity crisis, non-performing loans, growing gap between lending and deposit growth, widening current account deficit, a distortion in the interest rate market and a lack of skilled manpower .Upward pressure on USD has also led to a critical scenario for retaining strong liquidity of BDT. Bangladesh Bank has been more protective in bringing back stability in the banking sector. Towards the end of 2018 the liquidity situation of the majority of the banks started to deteriorate, which continue to affect the beginning of the year 2019.

In the year 2019 the entire financial sector especially NBFIs passed a difficult time with severe liquidity crunch, non-renewal of existing and new credit facilities by the banks, huge FDR encashment pressure from depositors and non-payment of installments by the borrowers on time etc. In addition, non-performing loans in the financial sector was increasing at a rapid pace, which adversely impacted the overall profitability of the industry.

The year 2019 has been a difficult year, but the performance of the company was satisfactory. In the year consolidated net profit after tax and provision stood at Tk. 188 million with earnings per share BDT 1.46. Deposits and Advances of the company stood at Tk. 2,810 million & Tk.7, 854 million as at 31st December 2019 respectively. I firmly believe that we shall be able to meet all the present & future challenges, more courageously and manage the situation in a better way.

We understand that the year 2020 will be a hard year for FIs. The key challenging factor will be to compete with Banks in securing deposits and lending at comparative rates. As FI, depositors expect higher rate of interest on deposits but while borrowing from FIs, customers demand parallel rate with Banks which is a difficult phenomenon for FIs to provide due to high cost of fund of most of the FIs, Despite that we are to survive by rendering better & quick services to our customers, both depositors & borrowers, and by harnessing new sources of fund and managing it in a judicious manner.

Recent Corona Pandemic has shaken the world economy which would also have negative impact on our country’s overall economic growth. Many valuable live were lost and numerous people are affected by Corona Virus attack. We pray for the eternal peace of those departed souls, early recovery of the affected people, and also pray for early disappearance of the pandemic.

GSP Finance Company (Bangladesh) Limited continuously reviews its human resource policies and implements effective management policies and practices to enhance the productivity of the employees by promoting the sense of belongingness. We believe that our human resources are our great assets in terms of their experience and professional expertise. Considering this, we provide them with adequate training and implement programs to develop and retain them.

I would like to express my sincere thanks to the Government of Bangladesh, Bangladesh Bank, Bangladesh Securities and Exchange Commission, Dhaka Stock Exchange, Chittagong Stock Exchange, Registrar of Joint Stock Companies and Firms, National Board of Revenue (NBR) and all other regulatory authorities for their continued guidelines, co-operation and positive outlook towards running the company steadfastly.

I would once again like to express my deep appreciation to my colleagues in the Board and members of the staff for their co-operation and commitment to render their level best for our stakeholders. I also extend my heartfelt thanks to our shareholders for the trust reposed in the Board of Directors of GSP Finance Company (Bangladesh) Limited.

May the Almighty Allah bless us all.

Mr. Feroz U. Haider Chairman