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Dubai / Emirates Business
Commercial Bank of Dubai (CBD) on Wednesday reported its financial results for the year 2018.
In a statement, the bank said that its operating income of AED 2,725 million was up 3.1% year on year, while operating expenses decreased by 4.7% to AED 858 million.
The bank’s operating profit of AED 1,866 million before impairment allowances was up 7.2% in 2018, while disciplined expense management delivered an improved cost to income ratio of 31.5% from 34.1%.
The bank records a net profit of AED 1,162 million, an increase of 16% over 2017 as of December 31, 2018. The bank’s capital adequacy ratio (CAR) was robust at 14.6%, while gross loans were recorded at AED 54.1 billion, an increase of 7.7% over 2017.
The bank’s non-performing Loan (NPL) ratio improved significantly from 8.7% to 6.2% whilst the coverage ratio remained unchanged at 78%. Advances to stable resources ratio (ASRR) recorded at the bank was 89.4%.
Commercial Bank of Dubai’s 2018 net profit of AED 1,162 million was 16% higher on the back of a 3.1% increase in operating income, a 4.7% decline in operating expenses and on lower impairment allowances by 4.8%.
The total assets of the bank stood at AED 74.1 billion as at December 31, 2018, an increase of 5.2% compared to the AED 70.4 billion as compared to same period in 2017.
The bank records an increase of 7.8% in loans and advances which stood at AED 50.9 billion as compared to AED 47.3 billion as at the end of 2017.
The bank’s liquidity position was strong and comfortably within the risk appetite with the advance to stable resources ratio 89.4% as at December 31, 2018 as compared to the UAE Central Bank 100% limit.
Customers’ deposits at the bank rise 9.8% to AED 53.2 billion as of December 31, 2018 compared to AED 48.4 billion in 2017. Low cost current and savings accounts (CASA) constitute 38.9% of the total deposit base, while the financing-to-deposits ratio stood at 95.8%.
Commenting on the bank’s performance, Dr Bernd van Linder, Chief Executive Officer said, “CBD posted a strong set of results for 2018, lifting our returns whilst delivering on our strategic agenda. We are investing in digital transformation, recruiting and retaining top talent to further enhance business capabilities and position ourselves as a key player in this evolving
environmentâ€.