Staff Reporter, Gulf Today

The Central Bank of the UAE (CBUAE) has maintained the base rate applicable to the overnight deposit facility (ODF) at 15 basis points, effective from Thursday (July 29).

This decision was taken following the US Federal Reserve Board’s announcement on Wednesday, to set the Interest on Reserve Balances (IORB) at 15 basis points, CBUAE said in a statement on Thursday.

The Central Bank also has decided to maintain the rate applicable to borrowing short-term liquidity from the CBUAE through all standing credit facilities at 50 basis points above the base rate.

The base rate, which signals the general stance of the CBUAE’s monetary policy, shall be anchored to the US Federal Reserve Board’s IORB rate, effective from Thursday. This follows the Federal Reserve’s announcement that, as of July 29, 2021, rates applicable on Interest on Excess Reserves (IOER) and Interest of Requited Reserves (IORR) will be replaced by the single IORB rate.

Previously, the rate applicable to IOER had been the anchor for the CBUAE’s base rate.

Meanwhile, in line with the UAE’s Emiratisation strategy, Emirates Institute for Banking and Financial Studies (EIBFS), a regional leader in banking and finance education and training, and Tanfeeth, a subsidiary of Emirates NBD, have organised an Open Day for Emirati job seekers in the banking and finance sector.

Drawing the participation of several candidates of UAE nationals, the event highlighted diverse job roles available in UAE banks and financial institutions in a wide variety of functions, such as operations, finance, transformation, customer service and collections. During the Open Day, 40 interviews were conducted, and several candidates were identified for existing vacancies as well as potential future openings.

Speaking about the Open Day, Jamal Al Jassmi, General Manager of EIBFS, said, “We are committed to contributing to realising the UAE government’s vision to build a knowledge-based economy through upskilling the national workforce in the banking sector. As part of our efforts, we are pleased to host the Open Day with Tanfeeth. This platform enables us to identify promising UAE national candidates and connect them with the right job opportunities.”

For her part, Fatima Abdulrahman Al Awadhi, Chief Human Resources Officer at Tanfeeth, said, “As a group, we work extensively on plans to support Emiratisation across the banking industry. We have adopted a three-pronged strategy in our approach to Emirati talent - Attract, Develop and Retain. At Tanfeeth, we create individual development plans for skilled UAE nationals, and aim to significantly increase the number of Emiratis that are on track for critical roles in banking operations. We also offer our UAE national employees extended opportunities for job rotation and cross-training to enhance their skills and build new contacts.”

CBI RESULTS: Commercial Bank International (CBI) has announced its second quarter 2021 financial results.

Key financial result highlights (quarter-on-quarter changes from Q1 2021 to Q2 2021 respectively):

Net profit of Dhs 27 million was delivered in Q2 2021, compared to a net loss of Dhs97 million in Q1 2021.

Net operating income increased by 3% from Dhs 129 million to Dhs 133 million.Net operating expenses decreased by 6% from Dhs 79 million to Dhs 74 million. Operating profit increased by 17.5% from Dhs 50 million to Dhs 59 million. Impairment charges decreased from Dhs 137 million to Dhs 27 million. Capital adequacy ratio remains strong, at 14.7%.

Commenting on the Bank’s performance, Ali Sultan Rakkad Al Amri, CEO of Commercial Bank International, said: “As the world economy is gradually recovering from the severe impacts of the ongoing Covid-19 pandemic, we have been focusing on the health and safety of our people and customers, and supporting our clients navigate through the current challenges. As a result of our focus on generating revenue growth, continued cost efficiency improvements and reducing our Impairment charges, we have delivered AED 27 million net profit in the second quarter. We are determined to continue to deliver further improvements in our financial performance throughout the remainder of the year.”

CBI is a UAE based corporate and retail Bank, with a growing Islamic banking business. The Bank was incorporated in 1991 in the Emirate of Ras Al Khaimah and is headquartered in Dubai.  

CBI shares are listed on the Abu Dhabi Securities Exchange (ADX) and the Bank has a long-term issuer default rating of BBB+ and a short-term issuer default rating of F2 from Fitch Ratings. CBI is regulated by the Central Bank of the UAE and the Securities and Commodities Authority of the UAE (SCA).

CBI offers a comprehensive portfolio of banking products, as well as tailor-made financial solutions in corporate, Islamic and retail banking, ranging from lending, trade services, cash management and treasury solutions to personal account services and credit cards.