Dubai: Commercial Bank International (CBI) posted a net profit of Dh101 million for the first nine-months of 2016 compared to a net loss of Dh3.3 million for the same period in 2015.
Net profit for third quarter of 2016 is Dh32 million compared to a net loss of Dh28.6 million in the third quarter of last year.
“CBI continues to deliver strong financial results driven by a robust core business that is growing sustainably quarter on quarter, prudent cost management, and an experienced leadership team,” said Mohammad Sultan Al Qadi, Chairman of CBI.
Revenue for the third quarter was up 4 per cent year on year at Dh212 million, driven primarily by the wholesale and retail business. The wholesale business continues to benefit from growing synergies with Qatar National Bank, while growth in new customers as well as the credit card business drove the improved performance in the retail business.
Revenue year to date is Dh610 million down 4.3 per cent from the year before, mainly due to the one off revenues from the sales of non-core assets in the first half of last year.
Bank’s net loans and advances increased by Dh1.72 billion (15 per cent) to Dh13.23 billion versus Dh11.5 billion at year-end 2015 largely driven by business loans, followed by personal and mortgage loans.
Customer deposits increased by 9 per cent during the third quarter and 16 per cent year to date to reach Dh12.918 billion, compared with Dh11.1 billion at year-end 2015.
“In spite of a challenging market environment, CBI has maintained momentum since the beginning of the year. We have successfully grown our customer base while strengthening our balance sheet and positioning the bank for continued growth in the year ahead,” said Mark T. Robinson, CEO of CBI.
Costs were down by 1.3 per cent in the third quarter to Dh116 million compared to the same period last year. Year to date expenses were at Dh335 million, up 1.7 per cent compared to the same period in 2015.
Total provisions year to date decreased by 44 per cent to Dh173 million from Dh311 million for the same period in 2015. Total provisions for the third quarter of this year at Dh64 million were down 44 per cent form Dh51 million in the same period in 2015.
Non-performing loans (NPLs) decreased by 6.5 per cent to Dh1.29 billion compared with Dh1.38 billion at the close of the third quarter of last year. Bank’s non-performing loan ratio decreased to 8.4 per cent from 9.5 per cent during the same period. Capital Adequacy Ratio remained stable at 14.3 per cent versus 14.8 per cent at year-end 2015.
