Commercial Bank of Dubai posts strong Q3 profits

The Commercial Bank of Dubai announced its results for the nine month period ended 30 September 2011.

It declared a net profit for the first nine months of 2011 was Dh777 million, 1% over the same period in 2010.

The growth in the bank’s net profit in 2011 was supported by lower funding cost.

Also, the nank’s emphasis on Non-interest Income resulted in the growth in Fees and Non-interest Income for the first nine months of 2011 by 7.2% when compared to the same period last year.

Earning per share was AED 0.40 for the first nine months of 2011. The return on Average Equity (ROAE) remains consistently high at 17.61%.

The bank is well capitalised with a strong Capital Adequacy Ratio as a result of rising equity base, strengthening the capital adequacy ratio by 24.19%, one of the highest in the UAE.
 
Commenting on the results, Peter Baltussen, Chief Executive Officer, said, “CBD has continued to perform well and the Bank has sustained its strong financial returns, as evidenced by the high return on assets and equity ratios. Our continued focus on liquidity and capital management has enabled us to further strengthen our balance sheet and to focus on growing our portfolio.”

Impairment allowances increased by Dh227 million for the first nine months of 2011 to cover potential losses.

Baltussen added, “In order to maintain adequate liquidity and a diversified funding base, the bank renewed its medium term facility in the third quarter, which was initially launched at USD400 million. The facility was oversubscribed and attracted USD450 million in commitments highlighting investors’ confidence in the Bank’s strength and performance.”