CBD net profit down 11.3pc in 2015

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.