The profits of foreign banks operating in Australia through branches dipped a little in the September 2009 quarter, data compiled by the Australian Prudential Regulation Authority shows.The aggregate net profit of the 35 foreign banks in the September 2009 quarter was $283 million, and down from $316 million in the June quarter and $313 million in the March quarter.Foreign banks are, however, once again consistently reporting profits after a torrid half year in late 2008, when lending losses and a high cost of funds put this sector in the red.The charge for bad debts in the September 2009 quarter was $184 million, up from $133 million in the preceding quarter but down from the peaks in the December 2008 and March 2009 quarters.The balance sheets of foreign bank branches have declined in 2009 as they, and their owners, adapt the strategies in light of the financial crisis.Foreign banks held $332 billion in assets at September 2009, down by 23 per cent from a 2008 peak of $409 billion.