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28 March 2024

CBD’s operating profit up 4% to Dh688 million in H1 2013

Published
By Wam

Commercial Bank of Dubai's (CBD) net profit for the first six months of 2013 increased by 2.3 per cent to Dh497 million as compared to Dh486 million for the same period of 2012.

The bank's operating income also increased by 4.6 per cent to Dh983 million, up from Dh940 million in the first half of 2012.

Net interest income of Dh694 million was 3.2 per cent higher compared to Dh673 million for the corresponding period last year. Non-interest income at Dh289 million was eight per cent higher compared to Dh268 million for the same period last year.

Operating expenses increased by 6.3 per cent to Dh295 million from Dh278 million for the same period in 2012.

Dh205 million impairment allowances for the loan portfolio were booked during the first half of the year 2013, resulting in a non-performing loans coverage ratio of 79 per cent, up from 71.7 per cent as at last year end.

CBD reported total assets of Dh42.4 billion as at June 30, 2013, a 7.7 per cent increase over Dh39.3 billion as at December 31, 2012. Customer loans and advances of Dh29.3 billion as at June 30, 2013 were 7.8 per cent higher than the Dh27.2 billion last year end.

Customers' deposits stood at Dh28.8 billion, compared to Dh28.1 billion as at last year end, an increase of 2.7 per cent. The bank's liquid assets represent 17.3 per cent of total assets. The advances to stable resources ratio stood at 83.1 per cent at the end of the period under review.

Commenting on the bank's performance, Peter Baltussen, CEO, said, "CBD's solid performance in the first half of 2013 is reflective of the current economic environment in the UAE. Sustained performance of core sectors like trade, tourism and services has been complemented by a stable oil price, resulting in increased investors' confidence and an upturn in the real estate market and stock market indices in the country."

He added, "The bank's loan portfolio increased by 7.8 per cent over December 2012. During the second quarter, the bank issued its first ever conventional bonds for $500 million which was well received. In the same period, the bank repaid Dh1.5 billion of Ministry of Finance deposits ahead of their maturity."