CBI's first-half 2017 net profit drops 24 per cent to Dh52 million

20/07/2017 06:20 AST

Commercial Bank International (CBI) has posted a net profit of Dh52 million for the first half of 2017, down 24 per cent compared to the same period last year.
For the second quarter of the year, the bank's net profit was flat year-on-year, but on quarter-on-quarter basis it was up 53 per cent at Dh32 million.

Bank's net interest income increased by 10 per cent to Dh263 million from Dh240 million in the first half of 2016. Operating income increased by 2 per cent to Dh405 million versus Dh397 million in the first half 2016.

"CBI's financial position is strong, including robust liquidity as the bank continues to reduce non-core assets and optimize its balance sheet. In addition, the bank continues to grow in a near flat market, with core net interest income growing by 10 per cent year-on-year thanks to the strong performance of the retail business," said Mohammad Sultan Al Qadi, Chairman of CBI.

The bank's operating profit increased by 3 per cent to Dh183 million in the first half of this year compared to Dh178 million in the same period last year. Net loans and advances increased by 2 per cent to Dh13.57 billion from the end of 2016; up 6 per cent year on year. Customer deposits increased by 1 per cent to Dh14 billion from the end of 2016; up 19 per cent year on year.

Significant investments in digital infrastructure, people, and processes, have propelled the bank forward over the first six months of the year and generated healthy increases in loan growth and customer deposits.

"Over the first half of this year, CBI focused on further strengthening the customer experience for its local UAE customer base. The recent upgrade of our core banking platform has significantly modernised the bank's operations and technology, streamlining services for customers and improving operational efficiencies," said Mark T. Robinson, CEO of CBI. CBI's net interest income increased 10 per cent to Dh 263 million when compared to the first half of 2016, due to retail asset growth and improvement in the net interest margin. Expenses increased marginally by 1 per cent to Dh222 million, in the first half of 2017 compared to the same period last year. NPL ratio increased to 9.3 per cent owing to local business pressures experienced across the UAE market. The ratio increase was driven by one exposure where the bank is fully secured.

CBI has strong liquidity and capital with high eligible liquid assets ratio (ELAR) at 14 per cent. Loan to deposit ratio stood at a comfortable 96 per cent while advances to stable resources (ASSR) at 97 per cent and capital adequacy ratio at 14.6 per cent at the close of the first half of 2017.

Gulfnews