UAE cbank predicts 2011 net profit at Dh3.7 billion
DUBAI: The UAE Central Bank said it expects its net profits to surge from Dh3.18 billion in 2009 to nearly Dh3.67 billion in 2010 and Dh3.7 billion in 2011. This two years of consecutive growth in net profit is being forecast after the bank recorded a 14 per cent contraction in 2009 profits, the bank said in a statement posted on its website.
On Thursday, the Central Bank board of directors discussed the bank's annual balance sheets and other monetary issues for this year and 2011.
Total revenue for 2011 was put at about Dh4.8 billion while expenses were projected at Dh1.11 billion, including interest on certificates of deposits.
A sharp fall in interest income depressed the Central Bank's net profits by 14.4 per cent in 2009 but its investment income more than doubled through the year. From Dh3.722 billion in 2008, the Central Bank's net income dipped to Dh3.184 billion in 2009, mainly due to a plunge in interest income from a record Dh5.688 billion in 2008 to only Dh461 million in 2009, said the bank. "But this was partly cushioned by a surge in investment income from about Dh1.539 billion to Dh3.844 billion in the same period."
Interest expenses plunged from around Dh3.188 billion in 2008 to Dh701 million in 2009 while net interest and investment income shrank from nearly Dh4.039 billion to Dh3.614 billion, the report showed.
The Central Bank's latest balance sheets showed it slashed its deposits with foreign banks by nearly 45 per cent in the first eight months of 2010 but boosted investment in foreign securities by at least Dh45 billion.
The drop in deposits followed a decline in the Central Bank's interest income in 2009 and a large increase in its profits from foreign securities, the bank said. -PB News