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Commercial Bank posts $19m profit

Dubai, August 3, 2010

Dubai-based Commercial Bank International (CBI) said it has registered a net profit of Dh70.28 million ($19.1 million) for the half year, up 3.3 per cent compared to the same period last year.

Announcing the results, the Commercial Bank said its earnings increased a marginal two per cent in the first half ended June 30 over the same period last year.

The overall provisions, however declined 36.3 per cent compared to the previous year mainly due to lower loan loss provisions, the bank said in a statement.

Douwe J. Oppedijk, CBI chief executive officer, said despite the tough economic scenario, the bank remained mostly risk averse during the first half of 2010 and focused on fine-tuning its internal processes and delivering quality products to customers.

According to him, the loan loss provisions fell early 65 per cent to Dh31 million from Dh88 million the previous year.

The Bank, he said, also experienced significant increase in fee income due to its focus on transactional banking and the commission and fee based income grew by 13.8 per cent over the corresponding period last year.

'Towards the end of the first half, the business started gaining traction and this is expected to continue. We plan to aggressively build on the current momentum by launching new products, expanding our network and enhancing the service quality, in line with our strategy.'

'We will continue to invest in technology and people to offer better products and services and to remain at the forefront of Emiratisation in the banking industry,' Oppedijk said.

According to him, the bank's total assets fell two per cent to Dh10.71 billion, compared to Dh10.93 billion at the end of 2009. The decline in assets primarily reflects the bank's cautious approach to loan book growth, which increased 0.3 per cent to Dh7.83 billion (net) compared to the year end 2009 figures.

Customer deposits too fell 3.1 per cent to Dh8.29 billion from Dh8.55 billion at the end of 2009, but overall liquidity conditions remained favorable.

Shareholders’ equity rose 3.5 per cent to Dh1.74 billion compared to Dh1.68 billion at the end of 2009.

On the bank's liquidity position, the CBI chief said the capital adequacy ratio continues to be strong. At the end of first half it stood at 15.92 per cent, against a minimum of 12 per cent as prescribed by the Central Bank.'

The Balance sheet continued to be healthy with liquid assets of Dh1.07 billion, Oppedijk added.-TradeArabia News Service




Tags: Dubai | profit | Commercial Bank International |

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