MIRA INFORM REPORT

Report No. :	489284
Report Date :	07.02.2018

IDENTIFICATION DETAILS

Name :	THE HONGKONG AND SHANGHAI BANKING CORPORATION
Registered Office :	Anchor Tower, 108, Bir Uttam C R Dutta Road, Dhaka-1205
Country :	Bangladesh
Financials (as on) :	31.12.2016
Date of Incorporation :	December 1996
Legal Form :	Foreign Private Co
Line of Business :	Loans, Credit Cards, Savings, and Consumer Banking Services.
No. of Employees :	650

RATING & COMMENTS

(Mira Inform has adopted New Rating mechanism w.e.f. 23^rd January 2017)

MIRA’s Rating :

A+

Credit Rating	Explanation	Rating Comments
A+	Low Risk	Business dealings permissible with low risk of default

Status :	Excellent
Payment Behaviour :	Regular
Litigation :	Clear

NOTES :

Any query related to this report can be made on e-mail : infodept@mirainform.com while quoting report number, name and date.

ECGC Country Risk Classification List

Country Name	Previous Rating (30.06.2017)	Current Rating (30.09.2017)
Bangladesh	A2	A2

Risk Category	ECGC Classification
Insignificant	A1
Low Risk	A2
Moderately Low Risk	B1
Moderate Risk	B2
Moderately High Risk	C1
High Risk	C2
Very High Risk	D

BANGLADESH - ECONOMIC OVERVIEW

Bangladesh's economy has grown roughly 6% per year since 1996 despite prolonged periods of political instability, poor infrastructure, endemic corruption, insufficient power supplies, and slow implementation of economic reforms. Although more than half of GDP is generated through the services sector, almost half of Bangladeshis are employed in the agriculture sector, with rice as the single-most-important product.

Garment exports, the backbone of Bangladesh's industrial sector, accounted for more than 80% of total exports and surpassed $25 billion in 2016. The sector continues to grow, despite a series of high-profile factory accidents that have killed more than 1,000 workers and crippling strikes, including a nationwide transportation blockade orchestrated by the political opposition during the first several months of 2015. Steady export growth in the garment sector combined with remittances from overseas Bangladeshis - which totaled about $15 billion and 8% of GDP in 2015 - are key contributors to Bangladesh's sustained economic growth and rising foreign exchange reserves.

Source : CIA

IDENTIFICATION DETAILS
Correct company Name	:	THE HONGKONG AND SHANGHAI BANKING CORPORATION
Head Office	:	Anchor Tower, 108, Bir Uttam C R Dutta Road, Dhaka-1205, Bangladesh.
Tel No	:	88-02-9660536-43, 99884722
Fax No	:	88-02-9660554, 9669457
E-mail	:	contact@hsbc.com.bd
Website	:	www.hsbc.com.bd
Date/ Year of Incorporation	:	December, 1996
Incorporation No.	:	Registered in Hong Kong -Shanghai
Legal Form (General)	:	Public Listed Co Public (but not listed) Foreign Private Co State-owned Co Sole Proprietorships Partnership Not Registered others (please specify) ________________
Legal form (Specific)	:	Bank CORP INC CO others (please specify) ________________
Issuing Authority	:	Bangladesh Bank (Central Bank of Bangladseh) City Corporation Municipal Administration Union Council

FINANCIALS- SUMMARY
Year	Turnover/ Sales	Assets	Income/ (Loss)
31^st December’2015	BDT 12772222626	BDT 140855939453	BDT 5174437576
31s December’2016	BDT 9567170783	BDT 131342209579	BDT 3894203499

FULLCHECK REPORT DETAILS
Information Parted By
Name	:	Mr. Farhanul Gani Choudhury
Designation	:	Chief Financial Officer
Contract No	:	N/A

Locations Details
Operating Address	:	Anchor Tower, 108, Bir Uttam C R Dutta Road, Dhaka-1205, Bangladesh.
Tel No	:	88-02-9660536-43
Fax No	:	88-02-9660554, 9669457
E-mail	:	contact@hsbc.com.bd
Website	:	www.hsbc.com.bd

Location :

: Owned

Rented

Ö

Leased

Area

5000

Sq. ft.

Type of Office :	: Commercial Office Bldg.		Semi-commercial office Bldg.	Ö
Retail shop		Industrial Park
Business Center		Home Office
Residential Bldg.

Branches:

21

Employee:
No. of Employees	In Office	:	650	In Factory	:	Nil
	In Branch:	:	Nil	Total	:	650
Details:

OWNERSHIP/SHAREHOLDERS
Names of Shareholders	No. of Share
HSBC Group	100%

DIRECTORS
Name	Designation
Mr. Douglas Flint	Group Chairman
Mr. Stuart Gulliver	Group CEO
Mr. Andrew Tilke	Bangladesh CEO

MANAGEMENT
Name	:	Mr. Andrew Tilke
Job Description	:	Bangladesh CEO
Nationality	:	N/A
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Muktadir Jinnah
Job Description	:	Manager (Inward).
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Farhanul Gani Choudhury
Job Description	:	Chief Financial Officer
Nationality	:	Bangladeshi.
Email address	:	N/A
Other details	:	N/A

Name	:	Mr. Francois de Maricourt
Job Description	:	Chief Executive Officer
Nationality	:	N/A
Email address	:	N/A
Other details	:	N/A

BUSINESS OPERATIONS
Nature of Activity :	Banking Services	Ö	Trader	Dealer	Distributor
	Exporter		Importer	Services	Others

Item Dealings In:
Products	:	Loans, Credit Cards, Savings, and Consumer Banking Services.
Production Capacity	:	Nil
Last Year Production	:	Nil

Trading Terms:

Purchasing Terms:	L/C	N/A	Cash	Others
	Credit :		30 days	60 days	Ö	90 days	days

Selling Terms :	L/C		Cash	Ö	Others
	Credit :	N/A	30 days		60 days	90 days	days

DETAILED DATA
Trade Reference & Related Parties	:	Overseas Clients			:	Nil
		Local Clients			:	Nil
		Overseas Suppliers			:	Nil
		Local Suppliers			:	Nil
Trade Markets	:	Exports			:	Nil
		Imports			:	Nil
Brand Name			:	N/A
Certified			:	N/A
Auditors			:	Huda & Vasi Chowdhury & Co. Chartered Accountants
Operation Status			:	Active
Member			:	N/A

CAPITAL STRUCTURE
Authorized Capital	:	N/A
Paid-up Capital	:	N/A	No. of Shares	:	N/A	Share Value	:	N/A
Main Assets	:	BDT 131342209579

FINANCIAL STATEMENT- DETAILED

Balance Sheet :
	Currency	BDT
	Denomination	: 1
	Financial Year Ending	:31^st December’2016
Financial Highlights	2016 Annual	2015 Annual
PRPPERTY AND ASSETS
Cash
In hand (including foreign currencies)	1255283864	1906341169
With Bangladesh bank and its agent bank (s)
(including foreign currencies)	17524114805	13554155838
	18779398669	15460497007
Balance with other banks and financial institutions
In Bangladesh	132238542	257228753
Outside Bangladesh	2008847587	2248832305
	2141086129	2506061058
Money at call and short notice	1440000000	400000000
Investments
Governments securities	37868520744	43692070650
other	6000000	6000000
	37874520744	43698070650
Loans and advances
Loans, cash credits overdrafts etc.	61181670796	72119481354
Bills purchased and discounted	349304732	276764722
	61530975528	72396246076
Fixes assets including premises, fumitorie and fixtures	403678614	459847362
Other assets	9172549895	5935217300
Non-Banking Assets	-	-
Total Assets	131342209579	140855939453
LIABILITIES AND CAPITAL
Liabilities
Borrowings from other banks
Financial institutions and agents	8218427597	8060616165
Deposits and other accounts
Current accounts and other accounts	35364666536	34642497945
Bills payable	2824966561	2671441074
Saving deposits	12590363292	13494620801
Term deposits	40112564641	46966222366
	90892561030	97774782186
Other Liabilities	6428840359	7610304942
Total Liabilities	105539828986	113445703293
Capital/shareholders’ equity
Fund deposited with Bangladesh bank	2934634949	2922383472
Other reserves	(128146945)	(33351058)
Profit and loss account	22995892589	24521203746
Total shareholder’ equity	25802380593	27410236160
Total liabilities and shareholder equity	131342209579	140855939453
OFF BALANCE SHEET ITEMS
Contingent liabilities
Acceptances and endorsements	45222350663	54896758344
Letters of guarantee	23436992768	25247468893
Irrevocable letters of credit	69906561014	58607566372
Foreign exchange contracts-spot and forward	5441092856	11362771034
Total	144006997301	150114564643
Other commitments	-	-
Documentary credits and short term trade related transaction	-	-
Forward asset purchased and forward deposits placed	-	-
Un-drawn note issuance and ravening undertaking facilities	-	-
Un-drawn formal standby facilities, credit lines and other commitments	-	-
Total	-	-
Total Off Balance Sheet Items	144006997301	150114564643

Income Statement :
	Currency	BDT
	Denomination	: 1
	Financial Year Ending	:31^st December’2016
Financial Highlights	2016 Annual	2015 Annual
Interest Income	5031431394	6506523607
Interest Paid On Deposits And Borrowings	(1968023212)	(3188293494)
Net Interest Income	3063408182	3318230113
Income From Investments	2502077877	4799431835
Commission, Exchange And Brokerage	3998775450	4647316185
Other Operating Income	2909274	7244493
Total Operating Income	9567170783	12772222626
Salaries And Allowances	2360806135	2542524459
Rent, Taxes, Insurance, Electricity Etc.	536702895	451802276
Legal And Professional Expenses	52427382	21334051
Postage, Stamp, Telecommunication Etc.	203445960	168186633
Auditors’ Free	850000	842000
Stationery, Printing And Advertisements Etc.	66182480	129136058
Chief Executive Officer’s Salary And Allowances	61455103	65068628
Depreciation, Impairment And Repair Of Bank’s Assets	318033359	275605338
Other Operating Expenses	384238324	1214636035
	3984141638	4869135478
Expenses Allocation To OBU	(938441164)	(925768461)
Total Operating Expenses	3045700474	3943367017
Profit Before Provision	6521470309	8828855609
Specific Provision For Classified Loans And Advances	308148134	(35901198)
General Provision For Unclassified And
Advances And Off Balance Sheet Exposures	(217537262)	(80902761)
Other Provision	-	13772101
Total Provision	90610872	(103031858)
Profit Before Tax	6430859437	8931887467
Tax
Current Year	2582591189	3779487694
Prior Year	(26018845)	(15516878)
Deferred Tax	(19916406)	(6520925)
	2536655938	3757449891
Profit After Tax For The Year	3894203499	5174437576

Cash flow Statement:

Currency

BDT

Denomination

: 1

Financial Year Ending

: 31^st Dec’2016

Financial Highlights

Interest Received

5026928581

6507362005

Interest Paid

(1682200991)

(3493211505)

Commission, Exchange And Brokerage

Received

3769302778

4348514625

Other Income

737938

8143252

Cash Paid To Employees

(2294021596)

(2821981214)

Cash Paid To Suppliers

(928294289)

(904846717)

Cash Paid For Other Operating Expenses

(398212556)

(1181549367)

Operating Profit Before Changes In Operating

Assets And Liabilities

3494239865

2462431079

(Increase)/Decrease Of Operating assets:

Loans and advances to customers

10865270548

(4628127308)

Other assets

(Increase)/Decrease Of Operating Liabilities:

Customers Deposits

(6882221156)

929001600

Borrowing From Other Banks And Financial

Institutions

157811432

(1583923926)

Other Liabilities

547510863

605571316

2478044324

(7578343216)

Cash Receipt From Operating Activities

5972284189

(5115912137)

Advance Income Tax Paid

(4817915626)

(5234855727)

Net Cash Receipt From Operating Activities

1154368563

(10350767864)

Cash Flow From Investing Activities

Income From Investments

2520098405

4897185653

Investments Made During The Year

(27773702651)

(37753153689)

Proceeds From Sale Of Investments

44670893647

43187641958

Purchase Of Property, Plant And Equipment

(107830859)

(177662868)

Proceeds From Sale Of Property, Plant And

Equipment

11003897

612546

Net Cash Used In Investing Activities

19320462439

10154623600

Cash Flow From Financing Activities

Cash Remitted To Head Office

(5419514656)

-

Net Cash Used In Financing Activities

(5419514656)

-

Net Increase In Cash And Cash Equivalents

(A+B+C)

15055316346

(196144264)

Gain /(Loss) On Revaluation Of Foreign

Currency

Deposited With Bangladesh Bank As Capital

12251477

9757337

Net Increase In Cash And Cash Equivalents

(D+E)

15067567823

(186386927)

Opening Cash And Cash Equivalents

19992322199

20178709126

Closing Cash And Cash Equivalents (F+G)

35059890022

19992322199

ASSOCIARES/SUBSIDIARIES/ RELATED PARTIES

Name of The Group

:

Nil

Name of Mother Company

:

Nil

Subsidiary

:

Nil

Sister Concerns

:

HSBC Group (Hongkong)

BANKING
Bank Name	:	N/A

ADVERSE DATA MONITORING
Dishonored Checks	:	No Record Found
Debt	:	No Record Found
Litigation	:	Clear
Performance Defaults	:	No Record Found
Adverse Local Media Coverage/ Adverse Filling History	:	No Record Found

SITE VISIT COMMENTARY

Our Representative Visited the subject company address at Anchor Tower, 108, Bir Uttam C R Dutta Road, Dhaka-1205, Bangladesh. It is Situated at Semi-Commercial area.

GENERAL COMMENTS

The subject is commercial bank which engaged in Banking Services. It is one of the reputed Commercial bank in Bangladesh

FOREIGN EXCHANGE RATES

Currency	Unit	Indian Rupees
US Dollar	1	INR 64.27
UK Pound	1	INR 89.72
Euro	1	INR 79.52
BDT	1	INR 0.77

Note : Above are approximate rates obtained from sources believed to be correct

INFORMATION DETAILS

Analysis Done by :	VIV
Report Prepared by :	TPT

RATING EXPLANATIONS

Credit Rating	Explanation	Rating Comments
A++	Minimum Risk	Business dealings permissible with minimum risk of default
A+	Low Risk	Business dealings permissible with low risk of default
A	Acceptable Risk	Business dealings permissible with moderate risk of default
B	Medium Risk	Business dealings permissible on a regular monitoring basis
C	Medium High Risk	Business dealings permissible preferably on secured basis
D	High Risk	Business dealing not recommended or on secured terms only
NB	New Business	No recommendation can be done due to business in infancy stage
NT	No Trace	No recommendation can be done as the business is not traceable

NB is stated where there is insufficient information to facilitate rating. However, it is not to be considered as unfavourable.

This score serves as a reference to assess SC’s credit risk and to set the amount of credit to be extended. It is calculated from a composite of weighted scores obtained from each of the major sections of this report. The assessed factors are as follows:

· Financial condition covering various ratios

· Company background and operations size

· Promoters / Management background

· Payment record

· Litigation against the subject

· Industry scenario / competitor analysis

· Supplier / Customer / Banker review (wherever available)

PRIVATE & CONFIDENTIAL : This information is provided to you at your request, you having employed MIPL for such purpose. You will use the information as aid only in determining the propriety of giving credit and generally as an aid to your business and for no other purpose. You will hold the information in strict confidence, and shall not reveal it or make it known to the subject persons, firms or corporations or to any other. MIPL does not warrant the correctness of the information as you hold it free of any liability whatsoever. You will be liable to and indemnify MIPL for any loss, damage or expense, occasioned by your breach or non observance of any one, or more of these conditions

This report is issued at your request without any risk and responsibility on the part of MIRA INFORM PRIVATE LIMITED (MIPL) or its officials.