CBD’s operating profit rises to Dh403m in Q1

dubai — Commercial Bank of Dubai recorded 9.5 per cent rise in first quarter operating profit to Dh403 million as the lender witnessed loan and advances reaching Dh44 billion. The bank said on Thursday its total assets of Dh66.8 billion as at 31st March 2017 were 4.2 per cent higher when compared to the Dh64.1 billion as at the end of the last year. Customers’ deposits of Dh45.9 billion were 4.9 per cebt higher compared to fourth quarter of 2016.

Dr. Bernd van Linder, Chief Executive Officer of CBD, said the first quarter headline results were powered by strong top-line growth. Loans and advances as well as customers’ deposits rose by 4.9 per cent over December 2016.

“Our core client segments, corporate and commercial returned a strong performance with a 4.6 per cent lending growth. Total revenues increased for all segments supported by higher fee income across most products. Persistent focus on obtaining a fair share of our clients’ business led to current and savings accounts rising to almost 50 per cent of total customer deposits,” said Dr. Linder.

“Net profit was negatively impacted due to higher impairment losses as the Bank, in line with its prudent policies set aside additional impairment allowances against potential credit losses. Resultant non-performing loans coverage ratio is 101 per cent,” he added.

“Looking forward, I believe that CBD with its robust liquidity and capital levels is well positioned to grow further in strategic segments,” said Dr. Linder.

CBD’s net impairment allowances were Dh116 million or 91 per cent higher when compared to the same quarter 2016.

—issacjohn@khaleejtimes.com