Commercial Bank of Dubai announces 9.1% operating profit boost

0
401
Spread the love
Commercial Bank of Dubai Image Courtesy : CBD
Commercial Bank of Dubai. Image Courtesy : CBD

Commerical Bank of Dubai (CBD) operating profit for the period ending 31st March 2013 increased by 9.1 percent to AED 361 million as compared to 2012’s first quarter AED 331 million operating profit.

Key Financial Highlights:

  • Net profit for the quarter ending 31 March 2013 increased by 1.5% to AED 245.5 million as compared to the same period in 2012.
  • Loans and advances at AED 28 billion, up by 2.7% over AED 27.3 billion as at 31 December 2012.
  • Customer deposits at AED 28.1 billion was at the same level as at 31 December 2012.
  • Capital adequacy ratio steady at 22.6%.
  • Cost to income ratio 28% compared to 29.3% for the same period in 2012

The increase was supported by an 8.6 percent increase in net interest income and a 4 percent increase in non-funds income. Operating expenses at AED 140 million for the first three months of 2013 which is 2.6 percent higher when compared to 2012, during the same period. Consequently, cost to income ratio improved to 28 percent compared to 29.3 percent for same quarter last year. CBD continues to proactively manage the quality of the credit portfolio. An impairment allowance charge for the first three months of 2013 totaled AED 120 million.

CBD reported total assets of AED 39.1 billion as at 31 March 2013 which is marginally lower than the 31 December 2012 AED 39.5 billion total assets. Customer loans & advances increased by 2.7 percent from AED 27.3 billion as at last year end, to AED 28 billion as at 31 March 2013. Customer deposits of AED 28.1 billion mirrored 31 December 2012 levels.

However, customer demand deposit increased by 11 percent to AED 12.1 billion when compared to last year end. The advances-to-stable resources ratio at 85.6 percent continued to remain well below the maximum 100 percent limit stipulated by the UAE Central Bank. The liquidity position remained comfortable with 18.2 percent of total assets being deployed in liquid assets. The Bank is strongly capitalized with capital adequacy ratio of 22.6 percent. Tier 1 capital ratio was 18.2 percent, well above the UAE Central Bank 8 percent requirement.

“CBD’s performance for the first quarter is underpinned by the positive business trends in the UAE. The Bank continues to maintain robust capital and liquidity ratios. We have launched new initiatives to leverage our franchise and benefit from the increasingly optimistic sentiment with regards to the UAE economy. These include the establishment of a project finance and syndications unit to assist our customers in addressing their anticipated funding requirements in an efficient manner.” — Peter Baltussen, Chief Executive Officer

Facebook Comments