Higher revenues drive CBI profit up 40pc
Dubai-based Commercial Bank International ( CBI) reported Dh174.6 million in net profit for 2017, a nearly40 per cent spike year-onyear driven by cost cutting and higher revenues.
During the year, the bank's operating income rose by 3 per cent to reach Dh866 million, as net interest income went up 10 per cent year- on- year to reach Dh556 million.
The bank's costs also fell, with impairment charges specifically down 8 per cent to Dh236.7 million in 2017. The bank said the decline in costs was driven by "significant recovery efforts" and better control over expenses.
Mohammad
Sultan Al Qadi, chairman of CBI, said the bank saw strong yearon- year growth in both its wholesale and retail banking units in 2017. This was coupled with cost- efficiency gains through "organisational redesign and changes to our size and structure."
"CBI's turnaround story continued in 2017 with our strategy producing further improvements in financial performance. Performance improvements have been driven by significant recovery efforts as well as revenue growth, expense control, and the better allocation of resources," he said in a statement.
The bank's operating expenses were nearly flat year- on- year, reaching Dh454 million in 2017 from Dh456 million a year earlier.
On the balance sheet side, loans and advances to customers dropped around 3 per cent year- on- year to Dh12.6 billion. Customer deposits were nearly flat year- on- year, ending 2017 at Dh13.2 billion compared to Dh13.7 billion in 2016.
Non- performing loans fell during the year to reach a ratio of 7.2 per cent to total loans, the bank said.
Operationally, the bank launched new interest and mobile banking platforms, and upgraded its banking platform to modernise its technology and operations.
The bank also launched new products in Islamic banking on the wholesale banking front. From a transaction banking front, CBI expanded its commodity trade book, escrow services and clean negotiation offerings.