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CBI posts $14.16m profit in first half

DUBAI, July 19, 2017

The UAE-based Commercial Bank International (CBI) has announced a net profit of Dh52 million ($14.16 million) for the first half of 2017, a 24 per cent decline compared to the first half of 2016.

The profit fall was due to higher provisioning, necessitated by market conditions, said the bank. The NPL ratio increased to 9.3 per cent owing to local business pressures experienced across the UAE market. The ratio increase was driven by one exposure where the bank is fully secured, it said.

The net profit for the second quarter of the year was Dh32 million, up 53 per cent from Q1 2017 and flat versus Q2 2016.

Net interest income increased by 10 per cent to Dh263 million from Dh240 million in H1 2016 and operating Income increased by 2 per cent to Dh405 million versus Dh397 million in H1 2016.

Operating profit increased by 3 per cent to Dh183 million versus Dh178 million in H1 2016, the bank said.

Net loans and advances increased by 2 per cent to Dh13,572 million from the end of 2016, up 6 per cent y-o-y. Customer deposits increased by 1 per cent to Dh14,030 million from the end of 2016, up 19 per cent y-o-y.

Mohammad Sultan Al Qadi, chairman of CBI, said: “CBI’s financial position is strong, including robust liquidity as the bank continues to reduce non-core assets and optimise its balance sheet. In addition, the bank continues to grow in a near flat market, with core net interest income growing by 10 per cent year-on-year thanks to the strong performance of the retail business.”

Mark T Robinson, CEO of CBI, commented: “Over the first half of this year, CBI focused on further strengthening the customer experience for its local UAE customer base. The recent upgrade of our core banking platform has significantly modernised the bank’s operations and technology, streamlining services for customers and improving operational efficiencies. We are confident in our strategy to invest in our people and infrastructure, and continue to focus on providing simple, high-quality banking services for our wholesale and retail customers in the UAE.”  -TradeArabia News Service

Tags: profit | Commercial Bank | CBI |

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