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Midland Bank (MDB) came to the financial frontier of Bangladesh in

2013 to serve people from all walks of life. Since the beginning, the Bank

has been focusing on convenience and accessibility to create superior customer experience. Being committed to the clients, community and economy, the Bank aims to bind the nation together by including people from all across the society - urban and rural, local and global to pursu e inclusive banking. The speed of technology and centralized procedures, the wisdom of experts and the foresight of the Board are aptly combined in MDB to propel it to heights of success across the region and beyond borders. With changing banking landscape and shifting consumer needs, MDB continues to build alliances and find new ways of customer solutions. Innovative delivery channels propped up by cutting-edge tools and technologies have branded us a friendly financial service provider with a basket of customer friendly products, services and solutions. Over time, with steady focus on increasing profitability, inclusive growth, capital strength and deep respect for the society, MDB has emerged as a major force in banking industry of the country. In whatever form you appear to us-a branch-lover who likes to interact face-to-face, a self-driven customer who uses ATMs, an internet user who logs into the Bank, a mobile customer who orders transactions, a remote customer who wants to make an online payment or a visitor to social media searching for new offers, we are ever ready to serve with passion and dedication.

MDB-Progressing and on Track

Letter of Transmittal

All Shareholders of Midland Bank Limited

Bangladesh Bank

Bangladesh Securities and Exchange Commission (BSEC)

Registrar of Joint Stock Companies and Firms

Dhaka Stock Exchange Limited (DSE)

Chittagong Stock Exchange Limited (CSE)

Dear

Sir/Madam,

Annual Report of Midland Bank Limited for the year ended December 31, 2017

We are pleased to enclose a copy of the Bank's Annual Report 2017, together with the Audited Financial

Statements for the year ended December 31, 2017 for your kind informatio n and record.

Thank you.

Sincerely,

Mr. Md. Masuduzzaman

Company Secretary (CC)

Statement Regarding Forward Looking

Approach

The annual report contains some forward looking statements in regards to business environment and its likely

effect in the financial position of Midland Bank Limited (MDB). Statem ents which are not historical facts including

statement of MDB's trust, expectation are forward looking statements. Words such as plan, anticipate are forward

looking statements. Forward looking statement involves inherent risks and uncertainties. Some factors may actually

cause to differ and some may significantly diverge from the forward looking methodology. Some of the factors that

may distress the business environment are given below: • Higher rate in Corporate Tax on Bank's profit (40%) • Increase rate of withholding tax and VAT on banking services Changes in the overall economic condition resulting from natural calamit ies and political instabilities • Changes in government policy issues • Over burden of SLR as a PD Bank • Impact of CRR and SLR of the Banks Withdrawal / Decrease of incentive given to some thrust sectors which may make the projects slow moving • Directives to reduce the lending rates to finance essential items • Upsurge in provisioning requirement may reduce the ROA and ROE • Dropping the margin ratio for investment accounts • Change in interest rate • Sluggish capital market arising from rumors • Compliance issues raised by the international forums which are likely to affect export growth Rise in international prices of essential goods which may result in vola tility in Foreign Exchange Market • Risk management of lending portfolio often requires stress testing which is based on sophis ticated

mathematical tools and cannot solely be dependent on existing MIS. The level of technology in banking

industry is yet to acquire that sophistication

Midland Bank Profile: Success and Promises

Corporate Information

Value Creation for Stakeholders during 2017

Performance Dashboard

Mission & Vision

Corporate Values

Strategic Goals

Customer Charter/Ethical Preferences

Enhancing Cyber Security

Milestones

MDB Financial Performance and Ratios: 5 Years Overview

The Sponsor Shareholders

The Board of Directors

Committees of the Board of Directors

From the Desk of the Chairman

Report of the Audit Committee of the Board of Directors

Managing Director & CEO's Review

Directors' Report

Report on Economic Impact/ Value Added and Distribution

Performance by Banking Segments

Corporate Governance

Management Committees

Report on Risk Management

Disclosure on Risk Based Capital Adequacy (Basel-III)

MDB Photo Gallery

Sustainability Report,

Green Banking

Corporate Social Responsibility

Financials 2017 (Auditors' Report to the Shareholders) Statement of Directors on Adequacy of the System of Internal Control Directors Responsibility in relation to Financial Statements Declaration of Managing Director & CEO and Chief Financial Officer to the Board of Directors

MDB Products and Services

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Contents

Midland Bank Profile: Success and Promises

Midland Bank came to the financial frontier of Bangladesh in 2013 as a fourth generation Bank to serve

people from all walks of life. The Bank was issued certificate of incorp oration and certificate of commencement of business on March 20, 2013 under the Companies Act 1994 as a Public Limited

Company by shares for conducting all types of banking activities. The Bank is led by a Board of Directors

who are experienced and expert in their respective field of business. A highly competent and expert team

of bankers steers the Bank's everyday operations to the path of progress as envisioned by its

Shareholders.

MDB started commercial operation on June 20, 2013 with a corporate slogan "bank for inclusive

growth". The Bank's business model has been evolving over time in response to significant changes in the

operating environment- notably tightening of regulatory oversight, ra pid development of new information and communication technologies and the more worth noticing, constantly changing customer behaviour. We have been reshaping our operations to be more customer-centric, developing a deeper insight of individual customer's financial goals and needs. Besides, we have been searching for opp ortunity to add new products to our business line by conducting wide research and development to comply with varying and changing requirement of the customers.

MDB is presenting its 2017 financial results as a fast growing fourth generation Bank in Bangladesh with

the pride of a solid capital base, quality assets and strong profitabili ty. The year 2017 has seen us rise from 42,913 to 61,938 customer accounts, net profit after tax grew by 4% to BDT 692 million and balance sheet rose to BDT 41,949 million in less than five years. Total deposits hit near BDT 34,240

million in the reporting year, up from BDT 26,676 million a year earlier and the loan book increased from

BDT 21,045 million to BDT 27,296 million at the year end. By and large, this was most successful on our

part to post return on equities (ROE) which is 12.30% and Earnings per Share (EPS) as best as BDT 1.44.

At the year-end 2017, Bank's paid up capital increased to BDT 4,795.20 million indicating a remarkable

growth of 11.00%. Total capital base stood at BDT 6,143 million as at the balance sheet date. Bank's Capital to Risk Weighted Asset Ratio (CRAR) stood at 21.03% at the year-end which stayed much above

required ceiling of 11.25% as per Basel III compliance. Total customer-base of Midland Bank grew to a

total of 44,395 in 2017 from 30,691 in 2016 with considerable growth in the rural customer- base. In our strategic action, we are giving priority to developing MSMEs placing special attention to extending finance to manufacturing sector. A total of 447 SME entrepreneurs were extended BDT 2,140 million in loan during the year. We're getting growth rates above the market benchmark which give us confidence for the future. Being committed to the clients, community and economy, the Bank is on the way to binding the nation

together by including people from all across the frontiers - urban and rural, SME and agriculture, lo

cal

and global. The Bank is forging ahead with a soaring ambition. We are convinced that Midland Bank will

succeed in realizing its full potential to become the leading client-centric Bank of the country. 6

Corporate Information

Name of the Company

Midland Bank Limited

Legal Form

Public Limited Company

Registered Office

N.B. Tower (Level 6 to 9)

40/7 North Avenue, Gulshan 2

Dhaka 1212

Date of Incorporation

March 20, 2013

Formal Inauguration

June 20, 2013

Company Registration No.

C-108070/13

Bangladesh Bank Permission No.

BRPD (P-3)745(67)/2013-1665

April 09, 2013

Core Banking Activities:

All Types of Commercial Banking Activities

Money Market Operations

Financial Intermediary Services

Any Related Financial Services

Delivery Channels

Branches 24

ATMs 26

Agent Banking Centre 08

Collection Booths 04

Real-time Online Banking

Internet Banking

SMS/Alert Banking

Debit/ Credit/ Prepaid Card with Global Access

Shared Network across the Country

Authorized Capital

BDT 10,000 million

Paid-up Capital

BDT 4,795.20 million

Total Capital (Tier-i & ii)

BDT 6,142.70 million

Total Asset

BDT 41,948.73 million

Statutory Reserves

BDT 559.84 million

Ca pital to Risk Weighted

Asset Ratio (CRAR)

21.03%

Earnings Per Share

BDT 1.44

Net Asset Value Per Share

BDT 12.20

Accounting Year-end

December 31

Credit Rating Agency

Credit Rating Information &

Services Limited

(CRISL)

Website

www.midlandbankbd.net

Total Manpower

Employee: 411ChairmanMr. M. Moniruzzaman Khandaker

Vice Chairman

Mrs. Nilufer Zafarullah, MP

Managing Director & CEO

Mr. Md. Ahsan-uz Zaman

Additional Managing Director

Mr. Mohammad Masoom

Chief Risk Officer (CRO)

Mr. Mohammad Masoom

Chief Financial Officer (CFO)

Mr. Md. Zahirul Islam, FCA

Company Secretary

Mr. Md. Masuduzzaman (CC)

Head of Internal Control & Compliance

Mr. Mohammad Syejuddin Ahmmed

Auditors

Hoda Vasi Chowdhury & Co.,

Chartered Accountants

SWIFT Code

MDBLBDDH

Contact Centre:

16596 (Short Code)

(+88) 09617016596 (+88) 09611016596 Long Term A Indicating adequate safety for timely repayment of financial obligations.

Short Term ST-3 Indicating sound liquidity factors and company fundamentals and good certainty of timely payment.

Date of declaration of Rating June 28, 2017

Credit Rating Agency Credit R ating Information & Services Limited (CRISL)

Credit Rating

7

Value Creation for Stakeholders during 2017

Customers 2017 2016

Total Deposit & Advance Accounts 61,938 42,913

Interest paid to Customers BDT 2, BDT 1,601 M

Loans & Advances BDT 27, BDT 21,045 M

Deposits BDT 34, 26,676 M

Service Points 01 01

SMS Banking A/c 32,740 13,250

Shareholders 2017 2016

Profit after Tax BDT BDT 668 M

Total Assets BDT 41, BDT 35,352 M

Shareholders' Fund BDT 5, BDT 5,399 M

Dividend Payout 10% stock 11% stock

Earnings Per Share 1.44 1.39

Employees 2017 2016

Total Headcount 411 375

Total Staff Cost BDT BDT 452 M

Talent Development: Training hours 2,500 hrs (approx.) 2,320 hrs (approx.)

Per Employee Operating Profit 2.88 M

Government Institutions 2017 2016

Tax paid to Government BDT BDT 446 M

Investment in Govt. Securities BDT 4, BDT 5,019 M

Tax Collected on behalf of Govt. BDT BDT 219 M

Excise Duty Collected on behalf of Govt. BDT BDT 26 M

Business Partners 2017 2016

Fees & Commissions BDT BDT 165 M

Payment to Service Providers BDT BDT 328 M

No. of Correspondent Banks 71 64

Business Partnership Signed 75 Deals 4 Deals

Community 2017 2016

CSR / Donation BDT BDT 39.60 M

Internet Customers (midland online) 1,816 1,038

Refinance to SME, Agri, Women BDT 56.09 M

Utilit

y Bill Collection 1, 1,225 M

Call Received by Call Centre 9,446 8,932

8

Income Profile

Volume Growth

Key Ratios

Performance Dashboard

Total

Operating

Income

grew to 2,031 M from 1,910 M (6.34% ahead)

Operating

Profit

grew to 1,196 M from 1,080 M (10.76% ahead)

Profit after

Tax grew to 692 M
from 668 M (3.50% ahead)

Shareholders'

Equity

grew to 5,853 M from

5,399 M

(8.39% ahead)

Deposits

grew to 34,240 M from 26,676 M (28.36% ahead)Assets grew to 41,948 M from 35,352 M (18.66% ahead)

Loans &

Advances

grew to 27,296 M from

21,045 M

(29.70% ahead)MSME

Loansgrew to 5,307 M

from

3,621 M

46.56% ahead)

Retails Loan

grew to 911 M
from 779 M (16.94% ahead)

NPL Ratio

grew to 1.68% from 0.68% (1.00% ahead)

Return on

Asset (ROA)

decreased to 1.65% from 2.26% (0.61% decreased by)

Earnings Per

Share (EPS)

grew to 1.44 from 1.39 (3.50% ahead)

Capital

Adequacy

decreased to 21.03% from 23.30% (2.27% decreased by)

Return on

Equity (ROE)

decreased to

12.30%

from 12.77% (0.47% decreased by) 9

Mission& Vision

MISSION

VISION

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