CBI reports Dh33m third quarter net profit

06/11/2017 06:16 AST

Commercial Bank International (CBI) on Sunday reported a net profit of Dh33 million, up 4 per cent year on year.

The bank’s nine-month profit at Dh86 million was down 15 per cent from the previous year as higher provision charges, necessitated by market conditions, impacted bottom line performance, the bank said in a statement.

Net loans and advances grew 2 per cent year-on-year to Dh13.5 billion versus a flat domestic credit growth. The year-on-year growth in customer deposits were up 10 per cent to Dh14.16 billion above the industry average growth of 1.2 per cent. Net interest income increased 13 per cent to Dh145 million when compared to the third quarter of 2016.

“CBI continues to grow in a near flat market. The 10 per cent year-on-year increase in customer deposits demonstrates our commitment to building long-term relationships with our customers to better meet their financial needs. Additionally, the strong growth in net interest income and forex income has helped to deliver our positive results,” said Mohammad Sultan Al Qadi, Chairman of CBI.

Significant investments

CBI’s operating income grew by 6 per cent to Dh215 million versus the previous quarter. Income growth was principally driven by strong growth in net interest income and forex income and partly offset by lower one off fees from syndications. Significant investments in digital infrastructure, people, and processes, have propelled the bank forward over the first nine months of the year and generated healthy increases in loan growth and customer deposits.

“CBI’s continued strategy of enhancing customer experience, and optimising our resources, has helped the bank strengthen our competitiveness. Our customers are now benefiting from CBI’s core banking system upgrade, which has significantly modernised the bank’s operations and technology and streamlined services. Our strategy to grow our UAE customer base remains on track,” said Mark T. Robinson, CEO of CBI.

The bank’s NPL ratio increased to 9.9 per cent owing to local business pressures experienced across the UAE market. The loan to deposit ratio stood at a comfortable 95.3 per cent level. CBI has strong liquidity and capital with the high eligible liquid assets ratio (ELAR) at 12.2 per cent and capital adequacy ratio at 14.7 per cent.

Gulfnews