Commercial Bank of Dubai 2010 net profit AED 821 million, up 2.2%
Commercial Bank of Dubai (CBD) has announced a net profit of AED 821 Million for the year ended on December 31, 2010, up by 2.2% as compared to AED 803 Million for 2009. The fourth quarter net profit in 2010 was up by 7.7% when compared to the same period in 2009. Total income for 2010 was AED 1,890 Million a 6.9% increase compared to AED 1,768 Million last year. Mainly as a result of lower funding cost, the Bank’s net interest income increased by 5.2% to AED 1,385 Million, while other operating income increased by 12% to AED 505 Million. Operating profits before specific and collective provisions grew 9.3% to AED 1,347 Million.
CBD reported total assets of AED 38.5 Billion, a 4.7% increase compared to last year end. Loans and advances stood at AED 27.2 Billion by year end 2010, while Customers’ Deposits were up by 4.6% compared to last year, reaching AED 29.2 Billion by the end of 2010. Consequently, the Bank’s liquidity position further strengthened, resulting in a strong advance to stable resources ratio of 83.9%, well below the maximum of 100% as stipulated by the regulator.
The results which are subject to the UAE Central Bank’s approval have been announced following a meeting of the Bank’s Board of Directors held on Sunday, 30th January 2011. The Board has proposed a cash dividend of 20%, subject to the agreement of the shareholders at the Annual General Meeting to be held on 16th March 2011.
Commenting on the results, Mr. Peter Baltussen, Chief Executive Officer said, “I’m pleased with the Bank’s strong results in 2010, which were achieved in a challenging operating environment. As a result of the Bank’s focus on family owned companies and affluent individuals, the quality of our credit portfolio remains strong. Our profitability ratios are among the highest in the UAE banking sector, while increased revenues combined with continued cost optimization have resulted in a healthy Cost to Income ratio of 28.7%.”
He added, “The Bank’s comfortable liquidity position ensures that we are geared up for growth and able to benefit from the opportunities that the recovering UAE economy is offering. Moreover, the Bank is well capitalized with a high Capital Adequacy Ratio of 20.28% and a TIER I Adequacy Ratio of 15.58%, well exceeding the UAE Central Bank and BASEL II regulations.”
The bank has continued to build up its provisions in line with its prudent credit policies and the regulatory provisioning requirements. The full year impairment charge for the loan portfolio was AED 555 Million, including AED 96 Million for general provisions, which represent more than 1.4% of the Bank’s credit risk weighted assets (CRWA) by the end of 2010. The non-performing loans are covered up to 89% by provisions against potential losses and collateralized by cash and other tangible securities.
Commercial Bank of Dubai
Over the decades, CBD has transformed into a progressive and modern banking institution. We are supported by a sturdy financial base led by a strong and stable management, as proven by our clients who have stood with us over the years. Today, we offer a full range of financial services to help our customers build and manage their finances.