Financial Industry of Bangladesh has been facing challenges in terms of liquidity, volatility and stiff competition. In the process, LankaBangla had to face a number of challenges during the year 2010. This is my pleasure to let you know that despite many constraints faced by LankaBangla and the industry as a whole, the year 2010 has turned out to be another successful year for the company.

In 2010 LankaBangla posted consolidated pretax profi t of Tk. 2,331.10 million, registering a growth of 156.71% over that of the previous year.The consolidated net profi t after tax stood at Tk. 1,700.15 million, indicating a growth of 128.49% over the previous year. The consolidated earnings per share during the year under review were Tk. 32.00 compared to previous year's Tk. 14.00 up by 128.49%. Investment size of the company at the end of 2010 stood at Tk. 15,064.57 million marking 40.80% growth over last year.

The driving force of our success has always been our strong belief in customers' satisfaction. Since fi nancial industry of our country is facing tremendous competition and challenges, customer orientation is the key to success for any institution. Therefore, identifi cation of customers' need and developing new products and services in order to cater to those needs is the only way to maintain a quality growth. We always believe that diversifi cation of products & services and revenue streams are the best way to march forward. Accordingly during the year we focused on multiple business areas. LankaBangla also maintains a well diversifi ed investment portfolio in major sectors. Steady growth and development of business has placed your company in a strong position creating an outstanding image.

LankaBangla continues to be recognized as the leading multi-product NBFI of the country and is a continuous role for the sector. LankaBangla Securities Limited, a subsidiary of LankaBangla Finance Limited, is the leading brokerage house of the country with a diverse clientele of institutions, high net worth individuals, foreign funds and retail investors. Consequent upon the directives of SEC, another fully owned subsidiary of LankaBangla Finance Limited has been fl oated complying all regulatory formalities under the name & style of "LankaBangla Investments Limited" for conducting the merchant banking activities having a new license in lieu of the earlier one of the parent company. From 2011 all merchant banking operations will be carried out under the banner of new company, LBIL. Inheriting the existing portfolio and resources of LankaBangla Finance Limited, LBIL is expected to be positioned as a top ranking merchant banking player of the country. We believe there is enormous value proposition in building synergy among LankaBangla Securities & LankaBangla Investments and the outcome would be instrumental in the growth of your company in the days to come.

We also believe that capacity building is another vital issue to ensure optimum contribution to the company. It is dependent on the professional capabilities of the employees, upholding professional ethics, and transparency in the operational policies, guidelines and availability of modern infrastructural facilities. In 2010, we imparted a number of training to our employees, improved quality of working environment; effective remuneration and incentive system have been implemented in line with the profi tability and performance standard of the employees. The human resources as well as other resources have been restructured and re-engineered along with the business and operational processes.

NBFI industry experienced cut throat competition in 2010 from the Banking industry that has been using lower cost of funds. It is expected that interest rate competition will be prevailed in the year 2011 as well, particularly in the traditional mode of fi nancing like leasing and term loan. Going forward, we do believe that continuation of our superior services, adoption of new products, promotion of home and SME loan, increase of the volume of domestic factoring, harmonious customer relationship, improvisation of skill and motivation of human resources, product business policies, promotion of strong risk management culture, corporate governance system would enable us to make another successful year of 2011 for delivering superior value to all our stakeholders.

On behalf of the management I would like to thank all our shareholders for the confi dence and trust placed in the company. My thanks go to the loyal customers who continued to be with us despite strong pressure from the competitors. I also express my heartfelt gratitude to our distinguished Chairman and honorable Members of the Board for their guidance, invaluable suggestions and encouragement that management received all through. I convey my appreciation to the employees of LankaBangla for their sincerity, diligence and team work. Thanks to our lenders, depositors, regulators and other stakeholders for their continued support. Thank you very much.

Mafizuddin Sarker
Managing Director