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