CBI reports Dh108.7 million first half net profit

Dubai: The Commercial Bank International (CBI) on Tuesday reported a net profit of Dh108.7 million for the first half of 2014, up 22 per cent compared to Dh88.9 million for the same period in 2013.

The bank’s net operating profit was Dh220 million, up 82 per cent from the 2013 first half profit of Dh121 million.

“CBI’s first-half results reflect a solid performance and are in line with the strategic plans we have set for the bank. We continue to develop and streamline our operations and focus on our core values to ensure we exceed stakeholder expectations,” said Kris Babicci, CBI’s chief executive officer.

Banks total assets stood at Dh16.7 billion by end of June 2014, an increase of 13 per cent compared to Dh14.8 billion at the year end 2013.

Loans and advances increased by 11 per cent Dh11.8 billion as at 30 June 2014, compared to Dh10.6 billion at the end of December 2013, while customer deposits were Dh12.1 billion by end June 2014, an increase of 16 per cent from the Dh10.5 billion registered at year end 2013.

CBI reported strong revenue growth to reach Dh339 million in interest income by end June 2014, an increase of 4 per cent compared to Dh325 million for the corresponding six-month period in 2013, mainly due to the increase in loans and advances.

Interest expense decreased by 24 per cent to Dh78 million in the first half 2014, as compared to Dh102 million for first half of 2013. Net fee and commission income increased by 13 per cent compared to Dh96 million in the first half of 2014 from Dh85 million end June 2013. Other operating Income increased by Dh54 million as compared to the first half of 2013, mainly due to a fair valuation gain on investments.

CBI maintained a capital adequacy ratio of 13.17 per cent as per Basel II as on June 30,2014. Earnings per share recorded 0.066 at the end of June 2014, representing an increase of 22 per cent against end of June 2013.

“The first half of this year has been extremely active for CBI as our profit reflects growth across all the bank’s business lines. Our objective is to build, maintain, and grow a stable banking franchise with a strategic focus on core businesses and a prudent approach to lending, to generate acceptable returns to our shareholders over the longer term and achieve sustainable growth,” Babicci said.