CBD profits jump 26.8% in 9 months

FALL IN IMPAIRMENT CHARGES, OPERATING EXPENSES BOOST BOTTOM LINE

Commercial Bank of Dubai (CBD) yesterday reported a net profit of Dh843 million for the first nine months of 2018, up 26.8 per cent compared to the same period last year.

For the third quarter of 2018, the bank reported a net profit of Dh282.29 million down 15 per cent compared to Dh332.20 million in the same quarter in 2017.

The bank’s operating income for the nine-month period amounted to Dh2.01 billion, up 1.5 per cent, largely driven by a 5.4 per cent increase in net interest income to Dh1.42 million compared to Dh1.35 billion in 2017.

While fees and commission income increased by 2 per cent, foreign exchange income registered a 13.4 per cent increase and other income increased by 14.3 per cent over the first nine months of 2017. Investment income declined by 78.4 per cent due to a one-off dividend of Dh55.7 million received in the same period last year.

“CBD’s operating performance for the first nine months of 2018 reflects the excellent progress the bank has made in delivering on the strategy. Results were strong, leading to a doubledigit growth in net profit. Pleasingly, performance improvements were broad based across core segments of the bank,” said Dr Bernd van Linder, Chief Executive Officer of CBD.

The bank’s total assets were Dh72.4 billion at the close of the third quarter of 2018 up 5 per cent compared to the Dh68.9 billion as at September 30, 2017.

Loans and advances at Dh49.8 billion registered a year on year growth of 4.9 per cent compared to Dh47.5 billion at the close of the third quarter last year.