Dubai: Commercial Bank of Dubai (CBD) reported 20.3 per cent lower net profits for the first half of 2016 at Dh485.8 million compared to Dh609.8 million in the same period last year.

The bank’s operating income increased to Dh1.19 billion in the first half of 2016, compared to Dh1.18 billion for the same period last year.

“Despite ongoing market challenges, we are well positioned to grow our core business whilst aiming to deliver extraordinary customer experiences by the way of faster, simpler and more efficient processes,” said Peter Baltussen, Chief Executive Officer of CBD.

CBD’s total assets reached Dh61.4 billion at the end of June 2016, an 18.9 per cent increase compared to Dh51.6 billion as of June 30, 2015, and 6 per cent higher compared to Dh57.9 billion at the end of 2015.

The bank recorded loans and advances of Dh40.6 billion as of June 30, 2016, an increase of 6.9 per cent over Dh37.9 billion as of June 30, 2015 and 4.1 per cent higher compared to the Dh39 billion as at end of 2015.

Customer deposits increased by 15.9 per cent to Dh41.3 billion as of June 30 2016, compared to Dh35.6 billion in the same period in 2015 and 2.1 per cent higher compared to Dh40.5 billion at year-end 2015 with increase in deposits across all the segments. Current and savings accounts (CASA) balances increased by Dh1 billion (9 per cent) in the first half of this year and it represents 45.7 per cent of total customer deposits.

Net impairment allowances were Dh134 million higher when compared to the first half of 2015. The bank’s liquidity continued to be comfortable with advances to stable resources ratio of 82.4 per cent as at June 30 2016.

Liquidity coverage ratio calculated as per Basel III guidelines was at 126.6 per cent and the net stable funding ratio was at 105.6 per cent as at June 20, 2016. CBD’s capital adequacy and Tier 1 capital ratios were at 16.5 per cent and 15.3 per cent respectively at the close of the first half of 2016.

The bank’s operating expenses were flat at Dh420.1 million for the period, compared to Dh418.4 million in the first half of 2015. CBD continued to invest in enhancing its distribution network and digital banking platforms.

“We are fully committed to growing the bank by further developing our digital offering to enhance our customers’ experience using state of the art technology and expanded distribution channels. Our balance sheets as well as the bank’s liquidity and capital adequacy ratios remain robust. Also, our prudent provisioning enables us to confidently face credit challenges that may arise,” said Baltussen.