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Commercial Bank of Dubai operating profit increases to Dhs662m for first half of 2012

United Arab Emirates: Wednesday, July 18 - 2012 @ 16:48

Non-funds income at Dhs264m was marginally higher compared to the same period last year with a 18% increase in foreign exchange earnings offsetting a 4% decrease in fee and commission income as certain one-off fees earned in Q2 2011 did not recur. Expenses continued to be closely managed and at Dhs274m, as a result of rationalization efforts, were 1% lower than expenses incurred for the period ending 30 June 2011.

The Bank continued its prudent provisioning policy with impairment provisions of Dhs195m, 27% higher than the charge for the first half of 2011. This resulted in net profit of Dhs486m for the half year ending 30 June 2012 which is 7.2% lower than Dhs523m for the corresponding period in 2011.

Commercial Bank of Dubai continued to book new business which resulted in a 4.1% increase in Loans & Advances to Dhs27.9bn as compared to Dhs26.8bn as at 31st December 2011, a 7% increase when compared to end of June 2011. Customers’ Deposits up by 2.3% to Dhs29.1bn as compared to Dhs28.4bn as at the end of last year and up by 3.3% compared to end of June 2011. Liquidity continued to be sound with liquid assets comprising 18.6% of total assets. The advances to stable resources ratio at 85.2% as calculated in accordance with UAE Central Bank regulation is well within the stipulated minimum. Commercial Bank of Dubai continued to maintain a sound capital base. As at 30 June 2012 the Bank’s total equity stood at Dhs6.4bn and its capital adequacy ratio was 23.6% compared to Dhs5.9bn and 23.1% at the end of 2011. The Bank’s TIER I Ratio was 18.1%, well above the UAE Central Bank requirement of 8%.

Peter Baltussen, Chief Executive Officer, said, “Commercial Bank of Dubai continues to register consistent operating results in a challenging economic environment. Whilst uncertainties in the wider global economy persist we are reasonably optimistic with regards to the UAE economy. In 2012 we have embarked on certain strategic growth oriented initiatives and will continue to seek new business opportunities as well as deepen our existing customer relationships. The Bank’s liquidity and capital strength ensures that it is well positioned to benefit from an economic recovery.”

The Bank launched “Attijari Mobile Banking Services” to the public in May 2012 and has received a positive initial response. This solution offers our customers easy and secure features to carry out a range of banking and non-banking services using their mobile phones.

The Bank was a proud winner of the “Mohammed Bin Rashid al Maktoum Business Award” for the year 2011 which was presented by H H Sheikh Hamdan Bin Mohammed Bin Rashid Al Maktoum in April 2012. The outstanding performance of the Bank and its investment in training and developing its employees and its adherence to quality standards in various aspects of its business were key reasons for winning this prestigious award. The bank looks forward to continuing what it has started and aims to further achieve optimum value from this award by providing our customers with the best banking services. Excellence is an ongoing journey for Commercial Bank of Dubai and this award is another testament to the Bank’s record of achievements.

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Wednesday, July 18- 2012 @ 16:48 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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