We can made our images circular by using CALayer class provide in QuartzCore Framework.To get our desired output first we need to create an instance of CALayer and assign him our image layer using layer method.Then we set setMasksToBounds property to YES. so that our sublayer were also clipped according to main layer bounds.After this we will set cornerRadius.Below is the code that generates output as shown in above figure.
CALayer * l = [profileImage layer];
[l setMasksToBounds:YES];
[l setCornerRadius:17.0];
Note: Yellow circle shown in figure is an image with inside of circle as transparent and we place friends image inside the circle image by placing new UIImageView and giving our circular image to it.