Dubai: Commercial Bank of Dubai (CBD) on Wednesday reported a net profit of Dh561 million for the first half of 2018, up 68.7 per cent compared to the same period last year,
The bank’s operating income increased by 1.1 per cent to Dh1.32 billion, mainly owing to a 6 per cent increase in net interest income, which rose to Dh938 million in the first half of 2018 compared to Dh885 million in the first half of 2017.
Non-interest income decreased by 9 per cent to Dh390 million from Dh428 million reported in the same period last year. Operating profit was 4.6 per cent higher at Dh904 million.
“CBD’s first-half results were strong, underpinned by a higher operating and net profit, with continued expense discipline and increased provision coverage. We remain committed to growing the bank by further developing our digital offering to enhance our customers’ experience using state of the art technology,” said Dr Bernd van Linder, chief executive officer of CBD.
Fees & commission income increased by 2.8 per cent, foreign exchange income registered a 27.6 per cent increase and other income increased by 12.3 per cent over the first half of 2017, while investment income declined by 82.4 per cent due to a one-off dividend of Dh55.7 million received in the first half of 2017.
In the first half of this year, operating expenses were 5.6 per cent lower at Dh424 million compared to Dh449 million for the same period last year. The bank’s cost-to-income ratio stood at 31.9 per cent, an improvement on the 34.2 per cent seen in the first half of 2017.
Total assets were at Dh68.9 billion as at June 30, 2018, an increase of 1.5 per cent compared to the Dh67.9 billion at the close of the first half of 2017.
Loans and advances were up 1.9 per cent to Dh47.2 billion compared to Dh46.3 billion as at end of same period last year.
Customers’ deposits of Dh48.1 billion in the first six month of the year increased by 2.6 per cent from Dh46.9 billion in the same period last year.
Current and Savings Accounts (CASA) constitute 43.2 per cent of the total deposit base, while the financing-to-deposits ratio stood at 98.1 per cent.
The non-performing loans ratio increased to 7.5 per cent from 6.2 per cent at the end of 2017, while the overall loan-loss coverage ratio improved to 95.3 per cent. The bank made credit impairment provisions of Dh346 million during the first half, a reduction of 35.5 per cent compared to Dh529 million for the same period in 2017.
The bank’s liquidity position continued to be comfortable, with the advance-to-stable resources ratio of 91 per cent the end of the first half of the year, higher than 86.4 per cent in the same period last year.
CBD’s Capital Adequacy and Tier-1 capital ratios were at 15 per cent and 13.9 per cent, respectively.
“With a strong balance sheet, healthy liquidity profile and capital adequacy, CBD is well-placed to support our customers’ requirements,” said Dr van Linder.