CBD reports rise in net profit

dubai — Commercial Bank of Dubai (CBD) has reported its financial results for the first nine months of 2019.

CBD’s net profit up by 26.1 per cent to Dh1,063 million owing to broad-based business improvement resulting in an 11.1 per cent increase in operating income. Operating expenses, meanwhile, increased by 2.9 per cent backed by investments in digital innovation, whilst impairment allowances decreased marginally by 2.6 per cent primarily on lower non-performing loan balances.

Operating income for the nine months of 2019 amounted to Dh2,242 million, an increase of 11.1 per cent attributable to a 5.4 per cent increase in net interest income and a 25 per cent increase in other operating income. The cost to income ratio improved to 29.1 per cent for the first nine months of 2019.

Balance sheet

Total assets were Dh82.5 billion as at September 30, an increase of 13.9 per cent compared to Dh72.4 billion in the same period last year. Loans and advances were Dh56.4 billion, registering an increase of 13.2 per cent compared to Dh 49.8 billion as at the end of first nine months of 2018.

Customers’ deposits were

Dh59.1 billion, representing an increase of 17.2 per cent compared to Dh 50.4 billion at the end of the same period in 2018.

Asset quality

The non-performing loans (NPL) ratio improved to 5.53 per cent from 6.33 per cent at the end of the first nine months of 2018.

In line with the bank’s prudent provisioning policy, additional net impairment provisions of Dh526 million were set aside during the first nine months resulting in the coverage ratio improving to 89.7 per cent. As of September-end, total allowances for impairment amounted to Dh3,556 million.

CBD has delivered its best-ever nine-month result with the bank’s net profit increasing by 26% Dr Bernd van Linder,

CEO of CBD