Prime Bank to open exchange houses in three UK cities next month
Friday, 26 March 2010
FE Report
Prime Bank will open its own exchange houses in three UK cities next month, the bank authority revealed Thursday.
"Our exchange houses in three major UK cities, namely- London, Birmingham and Manchester would commence their operation in April", Prime Bank Chairman Azam J Chowdhury said at the 15th Annual General Meeting (AGM) of the Bank held in the city.
"All the necessary human resources have been hired and all three premises for our UK exchange houses have also been prepared to let them go into operation next month", he added.
Meanwhile, the shareholders of Prime Bank Limited approved 30 per cent stock dividend, 10 per cent cash dividend and also took a special resolution to offer 1 (One) Right Share against 4 (Four) Ordinary Shares (i.e. 1R:4) at a premium of Tk.200/- against each share in the AGM.
By its latest expansion move, Prime Bank has joined the band of local commercial banks who have opted to spread their wings abroad in a bid to tap the market of foreign remittance earners.
The country's second largest private bank revealed earlier in January this year that the company is eyeing UK- one of the oldest destination for Bangladeshi expatriates for setting up its own exchange houses.
The move sounded identical to a similar business approach taken by a number of other local private banks who have recently targeted UK- which is the forth largest source of foreign remittance for Bangladesh as their first step towards overseas expansion.
Prime Bank Chairman however informed that apart from setting up exchange houses, the bank is also looking to open its own branches on foreign soils, specifically targeting the regions with high concentration of Bangladeshi expatriates.
"Currently we are exploring regions like Middle East for our next overseas branch expansion move; while we are also working with international credit rating agencies like Moody's and consultancy giants like PricewaterhouseCoopers in that regard" Chowdhury added.
Azam J Chowdhury thanked the shareholders for their continuous support and confidence shown on the Bank. He informed that the Bank continued to remain strong in all key areas of capital adequacy, asset quality, earning and liquidity.
Chairman also said that the Bank made satisfactory progress in all areas of its operations during 2009.
The Bank earned net profit after tax (audited) of Taka 2.78 billion.
Bank's deposit rose to Tk 106.96 billion at the end of the year 2009 as against Taka 88.02 billion in 2008 registering a growth of 22 per cent, while loan portfolio increased to Tk 89.25 billion as on December 31, 2009 from Taka 75.16 billion in 2008 registering 19% growth.
The foreign exchange business volume also increased by 9% to reach at Taka 19.90 billion as on December 31, 2009 from Taka 18.26 billion in the preceding year.
Capital Adequacy Ratio stood at 14.71% against the statutory requirement of 10% at the Balance Sheet date. The ratio of non-performing loans to total credit also remained in comfortable position at 1.29% in the year 2009. Return on asset was 2.37%, thus Bank's performance of 2009 may be termed as excellent in comparison to industry average.
Prime Bank will open its own exchange houses in three UK cities next month, the bank authority revealed Thursday.
"Our exchange houses in three major UK cities, namely- London, Birmingham and Manchester would commence their operation in April", Prime Bank Chairman Azam J Chowdhury said at the 15th Annual General Meeting (AGM) of the Bank held in the city.
"All the necessary human resources have been hired and all three premises for our UK exchange houses have also been prepared to let them go into operation next month", he added.
Meanwhile, the shareholders of Prime Bank Limited approved 30 per cent stock dividend, 10 per cent cash dividend and also took a special resolution to offer 1 (One) Right Share against 4 (Four) Ordinary Shares (i.e. 1R:4) at a premium of Tk.200/- against each share in the AGM.
By its latest expansion move, Prime Bank has joined the band of local commercial banks who have opted to spread their wings abroad in a bid to tap the market of foreign remittance earners.
The country's second largest private bank revealed earlier in January this year that the company is eyeing UK- one of the oldest destination for Bangladeshi expatriates for setting up its own exchange houses.
The move sounded identical to a similar business approach taken by a number of other local private banks who have recently targeted UK- which is the forth largest source of foreign remittance for Bangladesh as their first step towards overseas expansion.
Prime Bank Chairman however informed that apart from setting up exchange houses, the bank is also looking to open its own branches on foreign soils, specifically targeting the regions with high concentration of Bangladeshi expatriates.
"Currently we are exploring regions like Middle East for our next overseas branch expansion move; while we are also working with international credit rating agencies like Moody's and consultancy giants like PricewaterhouseCoopers in that regard" Chowdhury added.
Azam J Chowdhury thanked the shareholders for their continuous support and confidence shown on the Bank. He informed that the Bank continued to remain strong in all key areas of capital adequacy, asset quality, earning and liquidity.
Chairman also said that the Bank made satisfactory progress in all areas of its operations during 2009.
The Bank earned net profit after tax (audited) of Taka 2.78 billion.
Bank's deposit rose to Tk 106.96 billion at the end of the year 2009 as against Taka 88.02 billion in 2008 registering a growth of 22 per cent, while loan portfolio increased to Tk 89.25 billion as on December 31, 2009 from Taka 75.16 billion in 2008 registering 19% growth.
The foreign exchange business volume also increased by 9% to reach at Taka 19.90 billion as on December 31, 2009 from Taka 18.26 billion in the preceding year.
Capital Adequacy Ratio stood at 14.71% against the statutory requirement of 10% at the Balance Sheet date. The ratio of non-performing loans to total credit also remained in comfortable position at 1.29% in the year 2009. Return on asset was 2.37%, thus Bank's performance of 2009 may be termed as excellent in comparison to industry average.