CBI’s Q1 operating profit up by 52% | CBI’s Q1 operating profit up by 52% -
Kris Babicci, CBI’s Chief Executive Officer

CBI’s Q1 operating profit up by 52%

: Tuesday, April 29 - 2014 @ 11:43

Commercial Bank International PSC (CBI) announced its financial results for the three months ended March 31st, 2014, demonstrating continued positive momentum.

CBI reported a Net Profit of Dhs72.8m for the first quarter of this year, wherein its Net Operating Profit recorded Dhs120m, representing an increase of 52% from Dhs79m for the same period in 2013.

Kris Babicci, CBI’s Chief Executive Officer, commented on the results, saying: “CBI’s First Quarter results demonstrate a solid performance as we continue to focus on strengthening our balance sheet and growing the business, while maintaining long-standing relationships with our customers. Our objective is to build, maintain, and grow the Bank through a strategic focus on core businesses and a prudent approach to lending.” He also added: “Risk management is embedded at the centre of our business and it has enabled CBI to re-position itself for any upcoming challenges. We continue to maintain a favorable position against growth expectations in the years to come.”

CBI took substantial provisions of Dhs46.9m against a provision of Dhs8.5m in first quarter 2013. “We are resolutely reducing risk and legacy encumbrances as we shift the Bank into a more efficient and effective business model and back in sustainable profit territory,” said Babicci.

The Bank’s achieved profitability was partly due to a witnessed growth in Assets, which stood at Dhs15.4bn by end of March 2014, an increase of 4% compared to Dhs14.8bn at the end of December 2013. Loans & Advances increased by 2% to Dhs10.8bn compared to Dhs10.6bn at the end of December 2013, while Customer Deposits reached 10.3bn by end March 2014 against Dhs10.5bn in December 2013.

As of 31 March 2014, CBI reported strong revenue growth with an increase of 5% in Interest Income by end March 2014 compared to the corresponding three-month period in 2013, mainly due to the increase in Loans & Advances. Interest Expense decreased by 25% as compared to First Quarter 2013. The Bank managed to reduce interest cost through a renewed focus on increasing the customer base of CASA deposits and obtaining low cost customer time deposits.

Net Fee and Commission Income increased by 10% compared to end March 2013, driven by an increase in LCs and Acceptances. Other Operating Income increased by Dhs20m mainly due to fair valuation gain on investments. Shareholders’ equity increased by 4% to Dhs2.3bn as compared to Dhs2.2bn at the end of December 2013. The Bank maintained a Capital Adequacy ratio of 14.2% 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 0.98:1 as against the Central Bank requirement of 1:1.

Earnings per share recorded 0.046 at the end of March 2014, representing a 5% increase against end of March 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.

For more information please contact:
Fida El Samad
Head of Corporate Communications & Marketing
Commercial Bank International
Tel: +97142126164

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Tuesday, April 29- 2014 @ 11:43 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.

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