directors' report - Dutch-Bangla Bank Limited

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