Bangladeshi banks profit rise

Despite global economic recession, local commercial banks posted record operating profits in 2009, banking sources said. Operating income for most banks rose by 5 to 100 per cent in 2009 compared to previous year, according to data collected from different banks. 'Despite a noticeably deteriorated macroeconomic environment due to the global recession, the banking sector did better in 2009 for their innovative planning and strategy,' said Muhammad Ali, managing director of the Shahjalal Islami Bank. He also said that most of the commercial banks would gain profit from the spread between cost of fund and lending rate. EXIM Bank's operating income rose by more than 19.85 per cent to Tk 320 crore from Tk 267 crore in 2008, officials said. Islami Bank Bangladesh Limited's income increased by 1.56 per cent to Tk 845 crore, Social Investment Bank's registered an increase in their income by about 100 per cent while National Credit and Commerce Bank's income marked a rise of 33.05 per cent in 2009. Shahjalal Islami Bank made operating profit of about Tk 220 in 2009 compared to its last year's income of Tk 183 crore while the operational profit of Prime Bank surpassed Tk 580 crore, National Bank made operating profit Tk 350 crore, Duch-Bangla bank Tk 270 crore, First Security Islami Bank Tk 78 crore and Basic Bank Tk 167 crore . State-owned Sonali, Janata, Agrani and Rupali banks also showed significant rise in their respective operating income, ranging between 20 per cent and 25 per cent. 'Banks are coming out from the global financial recession,' said Muhammad Ali commenting on the overall performance of the commercial banks in 2009. Pubali Bank's managing director Helal Ahmed Chowdhury told New Age that the country's capital markets have contributed to raise the profit of the commercial banks in the first half of 2009. 'The last quarter of year was the turn around time of the commercial banks in global recession, ' he added.