directors' report - Dutch-Bangla Bank Limited
directors' report - Dutch-Bangla Bank Limited
directors' report - Dutch-Bangla Bank Limited
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Profit before taxes<br />
During the year 2010, profit before taxes of the <strong>Bank</strong> increased by Taka 1,584.6 million or 73.6% to Taka<br />
3,739.0 million from the previous year's amount of Taka 2,154.4 million. This increase was mainly attributed to<br />
higher operating profit comprising both net-interest income and non-interest income which grew at a faster rate<br />
than operating expenses.<br />
Provision for taxation<br />
As per Income Tax Ordinance, 1984, an amount of Taka 1,709.5 million has been charged as provision for<br />
current tax commensurate with the <strong>Bank</strong>'s profit compared to Taka 1,141.7 million of 2009. However, Taka 27.3<br />
million has been charged as deferred tax expenses as compared to Taka 125.1 million as deferred tax income<br />
for the year 2009. The effective tax rate marginally decreased to 46.4% from 47.2% of 2009 against nominal<br />
rate of 42.5%.<br />
Net profit after taxation<br />
The net profit after taxation grew by Taka 864.6 million to Taka 2,002.3 million from Taka 1,137.7 million of the<br />
preceding year marking a growth of 76.0%. The growth in after tax profit contributed to higher Tier 1 capital as<br />
well as total capital adequacy ratio of the <strong>Bank</strong> strengthening the capital base of the <strong>Bank</strong>.