Commercial Bank of Dubai on Wednesday announced its results for the three-month period ended March 31, 2012.
Commercial Bank of Dubai’s (CBD) operating profits registered an increase of 1.3 per cent to Dhs331 million for the 1st quarter of 2012 when compared to Dhs327 million for the same period of 2011.
The increase in operating profit was supported by an interest expense decrease of 30 per cent and 5.7 per cent increase in non-interest income of which fees and commission income increased by 2.7 per cent while foreign exchange income increased by 13.5 per cent. Continuing the Bank’s prudent provisioning policy, additional provisions of Dhs96 million were set aside during the quarter; an increase of 26 per cent when compared to Q1-2011 resulting in Net Profits for the 1st Quarter amounting to Dhs243 million when compared to Dhs263 million a year earlier.
Loans & Advances totaled Dhs27.6 billion as at March 31st 2012 up by 2.8 per cent compared to last year-end. Customers’ deposits at Dhs28.3 Billion as at the end of the first quarter were virtually unchanged compared to 31st December 2011.
The Advances to Stable resources ratio, computed in accordance with the Central Bank of UAE regulatory requirements continued to remain well below the maximum limit. The liquidity position remained comfortable with 19 per cent of the total assets being deployed in liquid assets.
Commenting on the results, Peter Baltussen, CEO said: “I’m very pleased to see that operating profits and business volumes have increased in Q1 and we are confident that this trend will continue for the remainder of the year. The Bank’s top line revenues and the loan portfolio are all witnessing an upward trend and the Bank remains well placed with strong adequacy and liquidity levels to benefit from the economic recovery.”
The ongoing investments in staff, branches and systems led to a marginal increase in operating expenses by 0.7 per cent which in combination with our increased revenues have resulted in a cost to income ratio of 28.9 per cent; one of the healthiest efficiency ratios in the market.
In its constant endeavor to provide excellent banking services to its customers, CBD recently opened its Abu Dhabi Airport Road Branch to enhance its reach.
The Bank also introduced Attijari Mobile Banking on Apple, Android, BlackBerry and Web version platforms to offer its valued clients the comfort of carrying out financial transactions such as fund transfer, bill payments and remittances.