CBI nine-month profits jump 121% to Dh108m

Dubai-based Commercial Bank International (CBI) on Tuesday announced that its net nine-month net profit more than doubled on higher fee income and fall in provisions.

In a statement to Dubai Financial Market, CBI said net profit jumped 121 per cent to Dh108 million for the period ending September 30 compared to Dh49m for the same period last year.

The bank also swung back into black in the third quarters with Dh37.6m profit against Dh19.1m loss in Q3 2009. The turnaround resulted from a strong improvement in net operating income which rose 18 per cent and 53 per cent drop in provisions. The operating income growth was driven by a 17 per cent increase in net interest income and 52 per cent increase in fee income.

Hamad Abdulla Al Mutawa, Chairman, said: “We are continually investing for the long-term in our distribution network, internal processes, service quality, human resources and technological platform.”

The bank’s 9-month provisions were down 44 per cent and fee income grew 26 per cent. The operating expenses dropped two per cent.

Total assets increased seven per cent to Dh11.67 billion against to Dh10.93 billion at the end of 2009.

Loans and advances increased six per cent to Dh8.28 billion at the end of September 2010 against Dh7.8 billion at the end of last year. Customer deposits rose three per cent to Dh8.78 billion in the first nine months of this year.

Al Mutawa said the bank has Dh1.16 billion worth of net liquid assets at the end of September 2010. Capital adequacy ratio (CAR) stood at 15.32 per cent, well above the UAE Central Bank requirement of 12 per cent.

Shareholders equity rose six per cent to Dh1.78 billion compared to Dh1.68 billion at the end of last year due to increase in retained earnings.

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