CBD net profit surges 68% in H1 on lower expenses
dubai — The Commercial Bank of Dubai (CBD) reported on Wednesday a 68.7 per cent increase in net profit of Dh561 million in the first half on the back of rise in operating income and a 5.6 per cent decline in operating expenses.
The bank said its operating profit rose by 4.6 per cent to Dh904 million as operating income edged up by 1.1 per cent to Dh1.328 billion year on year driven by higher net interest income, fees and foreign exchange income while impairment allowances declined by 35.5 per cent.
Bernd van Linder, CEO, said
CBD’s first half results were strong, underpinned by a higher operating and net profit, with continued expense discipline and increased provision coverage.
CBD said its capital adequacy ratio continued to be robust at 15 per cent while coverage ratio for non-performing loans improved to 95.3 per cent. Fees and commission income increased by 2.8 per cent, foreign exchange income registered a 27.6 per cent increase and other income increased by 12.3 per cent over the first half of 2017, while investment income declined by 82.4 per cent due to a one-off dividend of Dh55.7 million received in the first half 2017, CBD said.
CBD said its first half operating
expenses dropped 5.6 per cent to Dh424 million compared to Dh449 million for the same period last year. Cost-to-income ratio improved to 31.9 per cent, the bank said.
CBD’s total assets rose 1.5 per cent to Dh68.9 billion as at June 30, 2018, compared to the Dh67.9 billion as at June 30, 2017.
Loans and advances at Dh47.2 billion registered an increase of 1.9 per cent when compared to Dh46.3 billion as at the end of the same period last year. Personal banking loans dropped 1.2 per cent to Dh6.7 billion when compared to Dh6.8 billion last year. Corporate, commercial and business banking loans rose 3.6 per cent to Dh44.4 billion in the first half compared to
Dh42.8 billion compared to the same period last year.
Customers’ deposits rose by 2.6 per cent to Dh48.1 billion compared to Dh46.9 billion while current and savings accounts constituted 43.2 per cent of the total deposit base as the financing-todeposits ratio stood at 98.1 per cent. The non-performing loans ratio increased to 7.5 per cent from 6.2 per cent.
“In line with the bank’s prudent provisioning policy, additional gross credit impairment provisions of Dh346 million were set aside during the first half compared to Dh529 million for the same 2017 period.”