Dubai: Commercial Bank of Dubai (CBD) delivered a gain of 25 per cent on half-year net profits to Dh701 million. Operating income amounted to Dh1.51 billion, an increase of 13.7 per cent attributable to a 6.6 per cent spike in net interest income (NII) and a 30.9 per cent increase in other operating income.

Operating expenses were at Dh429 million, up 1.1 per cent on the back of investment in digital innovation. Disciplined expense management contributed to improved cost-to-income ratio of 28.4 per cent for the first-half of 2019 compared to 31.9 per cent a year ago.

“CBD has delivered its best ever half-yearly - the result has been achieved through the successful execution of our strategy. We remain on track to deliver a record result for the full-year,” said Dr. Bernd van Linder, CEO.

Total assets increased by 13.8 per cent to Dh78.4 billion as at June 30 compared to Dh68.9 billion as at the close of H1-2018. Loans and advances were at Dh54.8 billion, registering an increase of 16.1 per cent compared to Dh47.2 billion as at the end of first six months of 2018.

Customer deposits increased 14.8 per cent to Dh55.3 billion compared to Dh48.1 billion a year ago. Low-cost current and savings accounts (CASA) constitute 40.6 per cent of the total deposit base, while the financing-to-deposits ratio stood at 99.2 per cent.

In the first-half, impairment allowances increased 10.9 per cent as the bank conservatively provided for non-performing loans (NPLs). The NPL ratio improved significantly to 5.52 per cent from 7.49 per cent at the end of the first-half of 2018.

Additional net impairment provisions of Dh380 million were set aside during the first-half compared to Dh343 million a year ago. By end June, total allowances for impairment amounted to Dh3.44 billion.

The liquidity position remained robust with the advance to stable resources ratio at 90 per cent at the close of H1-2019. CBD’s capital tatios remain strong with the capital adequacy and Tier 1 capital ratios at 14.96 per cent and 13.81 per cent, respectively.

“Our financial metrics remain strong as demonstrated by a CET1 ratio of 13.81 per cent coupled with significant improvements across non-performing loans, coverage and the cost-to-income ratios,” said van Linder.