CBI profit surges 93% as focus stays on customers, cost cuts

Bank reports improved revenue growth, costs and asset quality

Commercial Bank International (CBI) yesterday reported a net profit of Dh40 million, up 93 per cent from Dh21 million reported in the same period last year.

CBI had a steady first quarter as a result of a continued focus on revenue growth, cost control and asset quality.

Net interest income increased by 1 per cent to Dh127 million in the first quarter of 2018.

Operating profit improved by 12 per cent to Dh103 million from Dh92 million in the first quarter of 2017.

“CBI continues to grow with another solid set of results. This stable performance is a result of the bank’s focus on its customers, and to the broader economic growth of the UAE,” Mohammad Sultan Al Qadi, Chairman of CBI, said in a statement.

Balance sheet

Net fee and commission income for the first quarter of 2018 increased by 7 per cent to Dh61 million, from Dh57 million in the same quarter last year as the bank continued to optimise the balance sheet.

“In first quarter of 2018, we continued to grow CBI’s underlying businesses and improve the services that we provide to our customers. We focused on increasing our revenues and continued cost efficiency. We also strengthened the quality of our assets, with our NPL ratio decreasing by 1.7 percentage points over the quarter,” said Mark T. Robinson, CEO of CBI.

Net loans and advances for the first quarter of 2018 increased by 1 per cent from year-end 2017, and also remained relatively steady yearon-year as the bank further strengthened its balance sheet and improved the quality of assets. CBI’s NPL ratio decreased to 6.7 per cent from 8.4 per cent in the first quarter of 2017.

Prudent cost control measures resulted in operating expenses for the first quarter decreasing by 6 per cent to Dh104 million from Dh111 million in the first quarter 2017. At the close of the first quarter of 2018, the bank’s capital adequacy ratio remained stable at 14.8 per cent.

Dh21m

CBI’s net profit for the first quarter of 2017