CEO MESSAGE

Our performance in the year 2016 bears the testimony that we have succeeded to address the strategically important core areas of banking operation as part of our long term strategy to take this institution to the next trajectory of sustainable growth. During the immediate past year, we focused on booking of quality assets and at the same time to consolidate our credit portfolio by taking measures of remediation. I believe that your prudent evaluation of our performance and valued guidance will pave us the way for sound and sustainable growth of Mercantile Bank. We are relentless in our endeavor to reposition ourselves in the banking industry as one of the strongest banking institutions of the country. We keep high on our agenda of priority to maximize the value of investments of our all category of dignified shareholders and at the same time to make value addition in the cycle of the economic growth of the country at large by expansion and diversification of our credit portfolio across the thrust sectors of the economy.

Global growth almost remains within the projected threshold and hovered around 3%, while the economic growth in the USA slides during first half of the year which may be considered as the corollary effect of Brexit but ultimately its long term impact proves to be insignificant. The world economy is expected to gain traction in the year 2017 weathering the emerging headwinds. In the year 2016, the growth trend of advanced economies had plunged to 1.6 % while the growth paradigm of emerging and developing economies is expected to take up turn in the current year after experiencing 5 years of consecutive downhill trend. In advanced economies, a modest and uneven recovery is expected to continue, with a gradual narrowing of output gaps. The slowdown and rebalancing of the Chinese economy, lower commodity price, and strains in some large emerging market economies will continue to weigh on growth prospect in 2016-17. Indian growth rate is projected to be 7.6% during 2016. The projected pickup in growth in the next two years-despite the ongoing slowdown in China-primarily reflects forecasts of gradual improvement of growth rates excepting the countries like Brazil, and some other countries in the Middle East which are in economically distressed situation because of overall instability.

ACKNOWLEDGEMENT

On behalf of management of the Bank, I express my appreciation and thanks to the Government of the Peoples Republic of Bangladesh, Governor and other officials of Bangladesh Bank, Bangladesh Securities and Exchange Commission (BSEC), Dhaka Stock Exchange (DSE), Chittagong Stock Exchange (CSE) and Registrar of Joint Stock Companies and Firms for their continuous help and assistance, valuable guidelines and co-operation provided to the Bank from time to time. We have a professional and dedicated team of management who are well poised to meet the challenges ahead in the stiff competitive banking industry. It is our continuous endeavor and we are also trying to be more competitive through implementation of different strategic measures both from short and long term perspectives. I am very much thankful to all my colleagues in the Bank for their profuse help and efforts to attain the corporate vision, mission and strategic objectives by upholding our ingrained institutional core values. I acknowledge my debt and gratitude to the respected members of the Board for their valuable and judicious policy support to navigate this institution in the right direction for taking it to a higher place of sustainable growth with competitive edge.

Kazi Masihur Rahman

Managing Director & CEO