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03 October 2023

CBI 2014 profit drops as provisions double

Commercial Bank International says it will focus on maintaining and developing its core business in2015.

By Staff

Commercial Bank International (CBI) reported a net profit of Dh134 million for 2014, representing a 24% decrease from Dh177 million for the same period in 2013 as provisions more than doubled.

The Ras Al Khaimah-based lender said its provisions increased to Dh332 million in 2014 as against Dh156 million in the previous year.

Mohammad Sultan Al Qadi, CBI's Chairman, said: "The 2014 financial year was a challenging one, but our customer focus and strict financial controls has yielded an acceptable result. In order to accelerate our efforts to address our legacy non-performing loans, we increased our provisions over the previous years. In 2015, we will focus on maintaining and developing our core business, capitalizing on growth opportunities while demonstrating a continued disciplined approach to risk management."

The bank's net operating profit increased to Dh465 million, up 40% on the 2013 figure – thanks to profitability in assets and an increase in fee based income.

Assets stood at Dh19.7 billion at the end of 2014, an increase of 33% on the previous year. Net fee and commission income increased by 7% to Dh220 million.

Loans and advances increased by 23% to Dh13.1 billion at the year-end compared to Dh10.6 billion at the end of December 2013, while customer deposits increased by 38% to reach Dh14.5 billion at the end of 2014 against Dh10.5 billion for the same period in 2013.

Shareholders' equity increased by 7% to Dh2.3 billion as compared to Dh2.2 billion at the end of December 2013.