Wednesday, Apr 30, 2014
Dubai: Commercial Bank International (CBI) reported a net profit of Dh72.8 million for the first quarter of this year, up 4 per cent compared to Dh70.10 million in the same quarter last year.
“CBI’s first-quarter results demonstrate a solid performance as we continue to focus on strengthening our balance sheet and growing the business,” said Kris Babicci, CBI’s Chief Executive Officer. “Our objective is to build, maintain, and grow the bank through a strategic focus on core businesses and a prudent approach to lending.”
CBI took substantial provisions of Dh46.9 million in the first three months of this year against a provision of Dh8.5 million in the first quarter 2013. “We are resolutely reducing risk and legacy encumbrances as we shift the bank into a more efficient and effective business model and back in sustainable profit territory,” said Babicci.
The bank’s total assets grew 4 per cent to Dh15.4 billion by the end of March 2014 from Dh14.8 billion at the end of December 2013. Loans and advances increased by 2 per cent to Dh10.8 billion compared to Dh10.6 billion at the end of December 2013, while customer deposits reached 10.3 billion by the end of March 2014 against Dh10.5 billion in December 2013.
The bank’s interest income grew 5 per cent by the end of March 2014 compared to the corresponding three-month period in 2013, mainly due to the increase in loans and advances. Interest expense decreased by 25 per cent as compared to the first quarter of 2013. The bank managed to reduce interest cost through a renewed focus on increasing the customer base of Casa (current and savings account) deposits and obtaining low-cost customer time deposits.
Net fee and commission income increased by 10 per cent compared to the end of March 2013. The bank maintained a capital adequacy ratio of 14.2 per cent.
By Babu Das Augustine Deputy Business Editor
Gulf News 2014. All rights reserved.
