Commercial Bank of Dubai H1 profit rises 25% to AED 701m

Dubai / Emirates Business

The Commercial Bank of Dubai (CBD) recorded a net profit of AED 701 million for the first half of 2019, representing an increase of 25 percent over the same period last year. The strong results have been attributed to broad based business improvement.
The operating expenses increased marginally by 1.1 percent primarily on the back of investment in digital innovation, whilst impairment allowances increased by 10.9 percent as the bank conservatively provided for non-performing loans.
Operating income for H1 2019 amounted to AED1,510 million, an increase of 13.7 percent attributable to a 6.6 percent increase in net interest income (NII) and a 30.9 percent increase in other operating income (OOI).
Dr Bernd van Linder, Chief Executive Officer said, “CBD has delivered its best ever half yearly results with the bank’s net profit increasing by 25 percent for the first half of 2019. The result has been achieved through the successful execution of our strategy. We remain on track to deliver a record result for the full year.”
“Our financial metrics remain strong as demonstrated by a CET1 ratio of 13.81 percent coupled with significant improvements across non-performing loans, coverage and the cost-to-income ratios. Our investment in operational excellence and digital transformation has given greater flexibility to our customers and the bank’s digital focus was recognised with the ‘best
digital service’ award at the Arab Digital Banking Excellence Awards and the ‘most innovative digital bank’ award
by the International Finance Magazine (IFM).
Operating expenses were AED 429 million, up by 1.1 percent. Disciplined expense management contributed to an improved cost-to-income ratio of 28.4 percent for the first half of 2019 (H1 2018: 31.9 percent).
Total assets were AED78.4 billion as of June 31, an increase of 13.8 percent compared to AED68.9 billion on June 31, 2018. Loans and advances were AED54.8 billion, registering an increase of 16.1 percent when compared to AED47.2 billion as at the end of first half of 2018.
CBD’s capital ratios remain strong with the capital adequacy and Tier 1 capital ratios at 14.96 percent and 13.81 percent, respectively, significantly above the regulatory thresholds mandated by the UAE Central Bank.