Dubai: Commercial Bank of Dubai (CBD) on Wednesday reported a strong nine-month result with its net profit up by 26.1 per cent year on year to Dh1.06 billion.
“The result has been achieved by fostering a culture of growth and disciplined execution of our well-planned strategy. We anticipate a consistent result in Q4 and remain on track to deliver a record result for the full year,” said Dr Bernd van Linder, Chief Executive Officer of CBD.
Operating income for the nine months of 2019 amounted to Dh2.24 billion, an increase of 11.1 per cent attributable to a 5.4 per cent increase in net interest income (NII) and a 25 per cent increase in other operating income.
Operating expenses were up 2.9 per cent to Dh653 million. A disciplined expense management focus saw a moderate increase in expenses on investment in digital capability to support business growth and improved customer experience.
“We continue to invest in new technology and have embarked on a progressive digital transformation programme across the bank to help us expand and improve services to our customers,” said Dr van Linder.
The cost to income ratio improved to 29.1 per cent for the first nine months of 2019 compared to 31.4 per cent for the same period last year.
The bank’s total assets were up 13.9 per cent to Dh82.5 billion for the nine-month period, year on year. Loans and advances were Dh56.4 billion, registering an increase of 13.2 per cent compared to Dh49.8 billion as at the end of first nine months of 2018.
Customers’ deposits were Dh59.1 billion as at September 30, 2019, representing an increase of 17.2 per cent compared to Dh50.4 billion at the end of the first nine months of 2018.
Overall asset quality of the bank improved during the nine-month period with non-performing loans (NPL) ratio improving to 5.53 per cent from 6.33 per cent a year ago. Additional net impairment provisions of Dh526 million were set aside during the first nine months resulting in the coverage ratio improving to 89.7 per cent.
The bank reported strong liquidity position with the advance to stable resources ratio at 87.5 per cent as at September 30, 2019.
CBD’s capital ratios remain strong with the capital adequacy and common equity Tier 1 ratios at 14.75 per cent and 13.59 per cent, respectively.