Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
Last updated 2 minutes ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
CBD reports 9.4% increase in operating profit
February 08, 2018
 Print    Send to Friend

Dubai: Commercial Bank of Dubai (CBD) on Wednesday reported its financial results for the year 2017.

Operating income of Dhs2,642 million, up 7.3 per cent year on year, driven by higher net interest income and non-interest income. Operating expenses increased by 3.5 per cent to Dhs901 million. Operating profit increased by 9.4 per cent to Dhs1,742 million. Net impairment allowances were Dhs 151 million or 25.7 per cent higher when compared to same period last year. Net profit of Dhs1,002 million is in line with the previous year’s net profit.

The Board of Directors has proposed 20% of the capital as cash dividend (Subject to approval by UAE Central Bank and shareholders at the Annual General Meeting) Total assets were higher at Dhs 70.4 billion as at 31st December 2017, an increase of 9.9 per cent over the Dhs64.1 billion as at 31st December 2016. The increase in assets is attributed primarily to an increase in loans and advances and customers’ acceptances.

Loans and Advances at Dhs47.3 billion registered an increase of 12.7 per cent when compared to Dhs41.9 billion as at last year end. Loan book growth was recorded across all business segments. Personal Banking loans at Dhs6.8 billion registered an increase of 10.9 per cent when compared to the Dhs6.1 billion as at the end of previous year. Corporate, Commercial and Business Banking loans were at Dhs40.5 billion, a 13 per cent increase when compared to Dhs35.8 billion as at 31st December 2016.

Customers’ Deposits of Dhs48.4 billion, increased by 10.6 per cent compared to Dhs43.8 billion at the previous year end. Current and Savings accounts (CASA) constitute 40 per cent of the total deposit base, while the financing to deposits ratio stood at 97.7 per cent.

Commenting on the Bank’s performance, Dr. Bernd van Linder, Chief Executive Officer said, “CBD’s 2017 performance was a story of two parts. On one hand, growth and profitability in CBD’s core segments continued to be robust with gross lending in Corporate and Commercial segments increasing by 13 per cent over 2016.”

“On the other hand, the Bank’s continued prudent approach towards its credit portfolio resulted in net impairment provisions increasing by Dhs151 million over 2016 to over Dhs700 million.”

He added “Operating profit grew by 9.4 per cent on the back of a 7.3 per cent increase in revenues, while efficiency investments bore fruit with operating costs increasing marginally by 3.5 per cent. Resultant cost-income ratio declined from 35.4 per cent in 2016 to 34.1 per cent as at the end of 2017.”

In conclusion he said “The UAE economy is expected to perform strongly in 2018 on the back of higher oil prices, fiscal reforms, recovery in global GDP and increased capital investments, particularly in Dubai as it prepares to host EXPO 2020. We are confident that, with comfortable liquidity and capital positions, the Bank will be in a position of strength to capitalise from the opportunities that the UAE economic growth has to offer.”

Add this page to your favorite Social Bookmarking websites
Post a comment
Related Stories
Dubai Exports extends focus to Far Eastern markets
DUBAI: Dubai Exports, the export promotion agency of the Department of Economic Development (DED) has concluded a successful visit to Hong Kong, attracting buyers and imp..
Next stage of Al Badiya Bridge Project launched
DUBAI: During his tour of the Al Badiya Bridge Project, Dr. Abdullah bin Mohammed Belhaif Al Nuaimi, Minister of Infrastructure Development, launched the project’s next s..
Dubai Tourism publishes manual
DUBAI: Dubai’s Department of Tourism and Commerce Marketing (Dubai Tourism) has published the “12 Steps Towards Sustainability” manual to guide hotels. This is the fir..
Dubai strategic hub for Belarus food exporters
DUBAI: The Dubai Chamber of Commerce and Industry (DCCI) recently participated in a seminar held in Minsk, Belarus, where representatives from the chamber’s Azerbaijan of..
DGCX, StanChart expand collateral basket
Dubai: The Dubai Gold and Commodities Exchange (DGCX) and its Central Counter Party (CCP) subsidiary, Dubai Commodities Clearing Corporation (DCCC), announced that cleari..
Advertise | Copyright