CBD posts $223 million profit
Dubai, January 30, 2011
Commercial Bank of Dubai (CBD) has announced a full-year net profit of Dh821 million ($223.5 million) for 2010, up 2.2 per cent compared to Dh803 million the previous year.
Announcing the results after the CBD board meeting on Sunday, the bank said its fourth quarter net profit in 2010 was up by 7.7 per cent when compared to the same period in 2009. The bank's total income for 2010 rose 6.9 per cent to Dh1.89 billion from Dh1.76 billion last year.
The board has also proposed a cash dividend of 20 per cent, subject to the agreement of the shareholders at the annual general meeting to be held on March 16.
Commenting on the results, Peter Baltussen, CBD chief executive officer said, 'I’m pleased with the Bank’s strong results in 2010, which were achieved in a challenging operating environment.'
'As a result of the bank’s focus on family-owned companies and affluent individuals, the quality of our credit portfolio remains strong. Our profitability ratios are among highest in the UAE banking sector, while increased revenues combined with continued cost optimization have resulted in a healthy cost to income ratio of 28.7 per cent,” he added.
CBD reported that its total assets grew 4.7 per cent to Dh38.5 billion compared to last year. Loans and advances stood at Dh27.2 billion by year end, while customers’ deposits were up by 4.6 per cent compared to last year, hitting Dh29.2 billion.
Consequently, the bank’s liquidity position further strengthened, resulting in a strong advance to stable resources ratio of 83.9 per cent, well below the maximum of 100 per cent as stipulated by the regulator.
Mainly as a result of lower funding cost, the bank’s net interest income increased by 5.2 per cent to Dh1.38 billion, while other operating income increased by 12 per cent to Dh505 million.
The operating profits before specific and collective provisions grew 9.3 per cent to Dh1.34 million.
Baltussen pointed out that the bank’s comfortable liquidity position ensures that 'we are geared up for growth and able to benefit from the opportunities that the recovering UAE economy is offering.'
'Moreover, the bank is well capitalized with a high Capital Adequacy Ratio of 20.28 per cent and a TIER I Adequacy Ratio of 15.58 per cent, well exceeding the UAE Central Bank and BASEL II regulations.”
The bank has continued to build up its provisions in line with its prudent credit policies and the regulatory provisioning requirements, he added.-TradeArabia News Service