Commercial Bank International PSC (CBI) announced its financial results for the six months ended June 30th, 2014, demonstrating continued positive momentum.
CBI reported a Net Profit of Dhs108.7m for the First Half of this year, representing an increase of 22% from Dhs88.9m for the same period in 2013, wherein the Bank’s Net Operating Profit recorded Dhs220m, an increase of 82% from Dhs121m for First Half 2013.
Kris Babicci, CBI’s Chief Executive Officer, commented on the results, saying: “CBI’s First Half results reflect a solid performance and are in line with the strategic plans we have set for the Bank. We continue to develop and streamline our operations and focus on our core values to ensure we exceed stakeholder expectations.”
“The first half of this year has been extremely active for CBI as our profit reflects growth across all the bank’s business lines. I believe we have further underlined the bank’s status as a very dynamic institution. CBI’s success has been achieved through the Bank’s commitment to expand our offerings and diversify our revenue streams, while delivering first-class financial services and products and maintaining long-standing relationships with our customers. Our objective is to build, maintain, and grow a stable banking franchise with a strategic focus on core businesses and a prudent approach to lending, to generate acceptable returns to our shareholders over the longer term and achieve sustainable growth,” stated Babicci.
The Bank’s achieved profitability was partly due to a witnessed growth in Assets, which stood at Dhs16.7bn by end of June 2014, an increase of 13% compared to Dhs14.8bn at the end of December 2013.
Loans & Advances increased by 11% to Dhs11.8bn as at 30 June 2014, compared to Dhs10.6bn at the end of December 2013, while Customer Deposits increased by 16% to reach 12.1bn by end June 2014 against Dhs10.5bn in December 2013.
As of 30 June 2014, CBI reported strong revenue growth to reach Dhs339m in Interest Income by end June 2014, an increase of 4% compared to Dhs325m for the corresponding six-month period in 2013, mainly due to the increase in Loans & Advances. Interest Expense decreased by 24% to Dhs78m in First Half 2014, as compared to Dhs102m for First Half 2013. The Bank managed to reduce interest cost through a renewed focus on increasing the customer base of CASA deposits and on obtaining low cost customer term deposits and inter-bank.
Net Fee and Commission Income increased by 13% compared to Dhs96m in First Half 2014 from Dhs85m end June 2013, driven by an increase in LCs and Acceptances. Other Operating Income increased by Dhs54m as compared to the First Half of 2013 mainly due to fair valuation gain on investments.
Shareholders’ equity increased by 5% to Dhs2.3bn as compared to Dhs2.2bn at the end of December 2013. The Bank maintained a Capital Adequacy ratio of 13.17% as per Basel II, which remains well above the 12% limit mandated by the Central Bank of the UAE. Advances-to-stable-resources ratio is maintained at 0.92:1 as against the Central Bank requirement of 1:1.
Earnings per share recorded 0.066 at the end of June 2014, representing an increase of 22% against end of June 2013.
CBI was awarded the title of ‘Fastest Growing Bank in the UAE’ and ‘Most Improved Bank in the MENA Region’ on the much coveted Banker Middle East Industry Awards 2013. The awards were based on the quantitative analysis of key measure indicators such as assets, liabilities, total income, net attributable profit and return on assets, collating data on real size, real growth, and percentage growth to identify the region’s leading financial institutions.
In 2012, Qatar National Bank (QNB), the leading financial institution and largest bank in the MENA region completed the acquisition of 40% of CBI shares. CBI’s new brand launched in March last year reflects this partnership. With an expanding network across the United Arab Emirates, an enhanced product suite and a renewed customer-centric approach, CBI remains well positioned for future growth.
For further information, please contact:
Fida El Samad
Head of Corporate Communications & Marketing
Commercial Bank International
Email: [email protected]
Tuesday, July 22- 2014 @ 14:54 UAE local time (GMT+4) Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Mediaquest FZ LLC.