Grameen Bank’s audited accounts for 2003 show a six-fold increase in net profits over 2002 – from 60 to 358 million taka (US$6 million). 2003 was the first full year of ‘Grameen II’, so this surge in profit looks like a good return on the decision to launch Grameen II. So where did these profits come from? This Briefing Note attempts to answer that question and the implications for Grameen's future performance.