CBD clocks 31% rise in first-half net at Dh566m

Commercial Bank of Dubai (CBD) has reported 31 per cent increase in net profit at Dh566 million for the first half of 2008 against Dh431 million for the corresponding period last year.

For the second quarter ended June 30, 2008, the bank earned a net profit of Dh299 million against Dh213m, recording an increase of 40 per cent. Earnings per share in the second quarter rose to Dh0.21 from Dh0.15, the bank said in a statement on the Dubai Financial Market website.

The core banking profit increased by 35 per cent to Dh468m in comparison to Dh346m for the first half 2007. Net interest income for the period was Dh512m with a 29 per cent increase over last year's figure for the same period. Fees and commission grew by 40 per cent compared to figures for the period ended June 30, 2007.

"We continue with tremendous development across all bank's business lines and this is reflected in the excellent growth of our balance sheet. Loans and advances grew by 73 per cent compared to June 30, 2007, and 23 per cent compared to last year-end," CBD's Chief Executive Officer Peter Baltussen said in a statement.

Trade finance levels touched Dh11.6 billion, an increase of 58 per cent compared to June 30, 2007, and 20 per cent when compared to last year-end figures.

This robust growth in the loans and advances was translated into an overall 55 per cent increase in total assets, which reached Dh34.2bn compared to Dh22bn as at the end of the same period of last year, and a 13 per cent increase over the Dh30.4bn balance as of December 31, 2007. Customer deposits were up by 52 per cent as compared to June 2007 and 18 per cent when compared to last year end figures. The annualised return on average assets of 3.5 per cent and annualised return on average equity of 24.19 per cent for the period ended June 30, 2008, remained one of the highest in the sector.