Sunday, Apr 22, 2012
(This story was originally published Thursday.)
DUBAI (Zawya Dow Jones)--Commercial Bank of Dubai (CBD.DFM), or CBD, on Thursday reported an 8% drop in first-quarter net profit on higher impairment provisions and lower income from Islamic financing.
The Dubai-based lender, mostly active in the small-to-medium sized enterprises area, said its quarterly net profit fell to 242 million U.A.E. dirhams ($66 million) from AED263 million in 2011.
The profit decline was due to an increase in impairment allowances, which grew to AED96 million from AED76 million a year earlier, according to financial statements posted on the Dubai bourse website.
The bank's income from Islamic financing fell to AED420 million from AED460 million in the same period in 2011.
CBD's total assets increased to AED39.4 billion at the end of the first quarter, from AED38.2 billion the year before.
CBD, in which Dubai's government owns a 20% stake, has around 25 conventional and 6 Islamic branches, making it the fifth largest network in the U.A.E.
-By Nicolas Parasie, Dow Jones Newswires, +9714 446 1681, nicolas.parasie@dowjones.com
Copyright (c) 2012 Dow Jones & Co.
(END) Dow Jones Newswires
22-04-12 0335GMT
