Dubai’s CBD reports 20.5% profit increase on higher revenue
Net profit for the full year jumps to Dh1.4 billion as revenue climbs 11% to more than Dh3bn
Commercial Bank of Dubai reported a 20.5 per cent increase in its full-year net profit for 2019 on the back of higher revenue.
The net profit for the period ending December 31 climbed to Dh1.4 billion, the lender said on Wednesday. Revenue rose 11.3 per cent year-on-year to Dh3.03bn.
Net interest income and Islamic financing income rose 2.8 per cent to Dh1.96bn and other operating income jumped 31.2 per cent to Dh1.06bn.
“CBD has delivered an excellent performance in 2019, achieving the bank’s best ever full year results,” said Bernd van Linder, CBD chief executive.
“The result has been achieved through the disciplined execution of our strategy and reflects continuous improvements across all aspects of our business. The bank’s capital base provides a strong foundation to embrace controlled growth in the coming year, with liquidity and eligible liquid asset ratios comfortably above the minimum levels prescribed by UAE Central Bank”.
Net impairment allowances rose 6.2 per cent year-on-year to Dh748 million and operating expenses also increased by 3 per cent to Dh885m.
Total assets were Dh88.1bn as at December 31 an increase of 18.8 per cent compared to the same period during the previous year. Net loans and advances rose 18.1 per cent at the end of last year to Dh60.2bn and customers’ deposits increased 19.1 per cent to Dh63.3bn.
“We continue to invest in the future and to position ourselves as the ‘Bank of Tomorrow’, a high performing organisation, prepared for growth, and digital by default that backs UAE businesses into their digital future,” said Mr van Linder.
Listed on the Dubai Financial Market, the bank offers a range of conventional and Islamic banking products and services to corporate, commercial and personal banking customers through a network of 15 branches and one sales office. It employs around 1,469 people and Investment Corporation of Dubai has a 20 per cent stake in the bank.
Updated: February 6, 2020 02:59 PM