directors' report - Dutch-Bangla Bank Limited

working abroad. DBBL also maintains 21 nostro
accounts abroad in major currencies including eight
ACU nostro accounts in the ACU region to facilitate
international transactions. DBBL's excellent service
with competitive charges provides a good
correspondent banking solution for the valued
clients of DBBL. We are continuing our efforts to
establish relationship with more banks and
exchange houses in all important financial centers
of the world to cater to the growing needs of our
clients at home and abroad. DBBL always enjoys
excellent cooperation and business relation with all
of its correspondents due to international standard
business dealings which attracts more banks of
international standard to have relation with DBBL.
DBBL is also having 'Issuing Bank Agreement' with
ADB under their Trade Finance Facilitation Program.
This program supports a wide range of transactions,
from commodities and capital goods as well as
consumer goods.
Remittance inflow of DBBL rose from
US $ 97.90 million in 2009 to US $ 105.82 million in
2010.
REVIEW OF PERFORMANCE AND FINANCIAL
POSITION OF THE BANK
Summary
Healthy business and profit growth
DBBL registered healthy business and profit growth
in 2010 while being cautious to protect against
unforeseen business risk. The deposit of the Bank
increased by 22.8% from Taka 67,788.5 million in
2009 to Taka 83,244.8 million in 2010, loans and
advances increased by 39.8% from Taka 48,411.0
million to Taka 67,657.7 million in 2010 while
import business increased by 65.1% and export
business increased by 78.6%. Operating profit grew
by 55.7% from Taka 2,695.7 million to Taka
4,198.5 million and net profit after tax increased
from Taka 1,137.7 million to Taka 2,002.3 million
showing a growth of 76.0%.Despite lower yield on
loans and advances and higher operating cost,
higher net interest income resulting from improved
deposit mix and lower cost of fund and higher noninterest
income resulting from more value added
services contributed to notable growth in operating
profit. Net profit after tax grew at a faster rate than
operating profit mainly due to lower growth in
provisioning for loans and advances and
maintaining quality of assets. Return on equity was
35.3% in 2010 compared to 30.3% in 2009.
Higher investments in branch expansion, IT
platform, Fast Track and ATM network, card
services and human resources though contained
profit growth in 2010, however, these will increase
resource capacity, increase distribution network,
improve efficiency in operations, augment resource
flow to expand customer base and to provide much
better and faster customer services. As a result, in
the long term it will bring substantial and
sustainable benefits for the Bank.
Net interest income
During the year 2010, the net interest income of