CBD net profit down 11.3pc in 2015

The Pak Banker - - FRONT PAGE -

DUBAI: The Com­mer­cial Bank of Dubai (CBD) recorded an 11.3 per cent drop in net profit last year com­pared to 2014, reach­ing Dh1.066 bil­lion, as net Im­pair­ment charges jumped 51 per cent year-on-year to Dh427 mil­lion. Op­er­at­ing profit edged up 0.5 per cent last year over 2014 to Dh1.49 bil­lion, the bank said in a state­ment to­day.

Op­er­at­ing in­come in­creased 5 per cent to Dh2.35 bil­lion, mainly due to a 3.6 per cent growth in net in­ter­est in­come to Dh1.64 bil­lion and an 8.3 per cent in­crease in non-in­ter­est in­come to Dh712.2 mil­lion. Fees and com­mis­sion rose 22.9 per cent to Dh498.2 mil­lion. Op­er­at­ing ex­penses, mean­while, in­creased 13.8 per cent to Dh858.8 mil­lion in 2015 from Dh754.4 mil­lion in 2014, as per the state­ment.

To­tal as­sets of Dh57.9 bil­lion in 2015 were up 23.4 per cent com­pared to Dh46.9 bil­lion in 2014. The bank's cost to in­come ra­tio stood at 36.5 per cent in 2015. "While the eco­nomic out­look is chal­leng­ing, we be­lieve that the over­all mar­ket presents op­por­tu­ni­ties for selec­tive growth and we will con­tinue to pru­dently build mar­ket share in se­lected cus­tomer seg­ments. The bank will also con­tinue to in­vest its re­sources into fur­ther en­hanc­ing its dig­i­tal ca­pa­bil­i­ties," stated Peter Bal­tussen, chief ex­ec­u­tive of CBD.

Loans and ad­vances of Dh39.0 bil­lion last year reg­is­tered a growth of 22.6 per cent com­pared to Dh31.8 bil­lion in 2014. Loan book growth was across all busi­ness seg­ments, the bank said. Per­sonal and busi­ness bank­ing net loans stood at Dh6.7 bil­lion, up 46 per cent when com­pared to the Dh4.6 bil­lion recorded in the pre­vi­ous year.

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