Dear Shareholders of
Janata Capital and Investment Limited,
I welcome you all to the 12th Annual General Meetng of Janata Capital and Investment Limited.
This year we are having our general meetng marking notable growth of JCIL and also the capital market of our country as a whole. Although this year was marked by the global pandemic, economic disrupton, calls for acton on economic reforms and social equity and of course, intense competton, JCIL employees met the challenges with resilience of the culture it owns. Thanks to their focus and diligence, JCIL entered 2022 with a renewed sense of purpose as well as a positon of financial and strategic strength.
If we take a look at Bangladesh economy, we can easily notce that we have an inspiring story of growth and development and our country is in a good positon for transiton to the status of middle-income economy by 2031. Bangladesh has set an example of successfully tackling disasters through coordinated efforts by the government, development and private partners, donors and corporate bodies to overcome the impacts of Covid-19. It’s a mater of pride for us that the developed world also take our country as a role model in case of disaster management and simultaneously ensuring economic progress.
In line with the previous year, the stock market of the country remained bullish from the beginning of 2021 amid growing investor partcipaton driven by various regulatory measures and favourable macro-economic conditons. Regulatory policies and reforms have boosted boosted the investors’ confidence in the market.
Expansionary monetary policy, lower interest rates on bank deposits and lack of investment optons during the Covid pandemic prompted investors to direct funds to the stock market. The daily average turnover on the DSE jumped to Tk 1,475.22 crore in 2021 from Tk 648.95 crore in the previous year. The market capitalisaton of the DSE rised by 20 per cent or Tk 93,966 crore to close at Tk 5.86 lakh crore on 30 December, 2021.
JCIL revenue for 2021, Taka 125.28 crore, was the highest in the Company’s history. The Company generated Taka 117.53 crore in cash from operatons for the year and Taka 77.48 crore of this amount has been in the form of capital gain. Return on average equity in its proprietary portolio for the year was around 27%, the highest among the state-owned merchant bankers running in the market at present. These results reflect the economic value of JCIL’s planning, strategy, and executon.
To realize the potental of the Company, the Board of Directors works with management to review and approve business strategy and explores opportunites and risks. We oversee the allocaton of resources to execute the strategy and create value for the owner and the various stakeholders of the company and investors that we serve. This process addresses investments in the company’s internal capabilites, opportunites in investments and the return of cash to the holding company, Janata Bank Limited.
JCIL’s focus is to play a larger role in its clients’ success by delivering a sound environment for investment as well as providing them with prudent support and proper guidelines from tme to tme. As a state-owned merchant banker, JCIL is always with its valued investors by providing them with various facilites including interest waiver subject to the Company’s ability and compliance with regulatory issues. It is a mater of satsfacton that at JCIL, the amount of non- perfuming loans has reduced this year at a considerable extent. It would not be possible without the cooperaton from our honourable investors who showed beter performance in 2021 than in the previous year in making their
investment decisions.
We thank all our stakeholders and look forward to their contnued support.
Dr. S. M. Mahfuzur Rahman
Chairman, Janata Bank PLC