Dubai: Commercial Bank International (‘CBI’ or ‘the Bank’) announced its full year (FY) 2018 financial results.
FY 2018 and Q4 2018 Financial Results Highlights:
- Annual net profit up 29% from AED 175 million in 2017 to AED 226 million in 2018. Quarterly net profit up 36% from AED 61 million in Q3 2018 to AED 83 million in Q4 2018.
- Annual net operating income up 7% from AED 865 million in 2017 to AED 928 million in 2018. Quarterly net operating income up 35% from AED 225 million in Q3 2018 to AED 304 million in Q4 2018.
- Annual expenses down 9% from AED 448 million in 2017 to AED 409 million in 2018.
- Credit provisions down 30% from AED 224 million in 2017 to AED 156 million in 2018.
- Customer deposits increased by over AED 1 billion in 2018 to AED 15 billion.
Commenting on the Bank’s performance, Mohammad Sultan Al Qadi, Chairman of CBI, said: “Last year saw continued growth and transformation of CBI, with our focus on key customer relationships and service excellence driving revenue growth and cost optimisation. Our corporate lending and customer deposits have grown substantially, and our continued focus on asset quality delivered significant improvements in credit provisions. As a result, CBI achieved solid profitability and growth in all target segments and businesses.”
Mark T. Robinson, CEO of CBI, added: “CBI’s strong performance has been primarily driven by strong loan and deposit growth in our target segments. In 2018, we achieved a 7% increase in income, while expenses fell by 9% year-on-year, as a result of the continued focus on improving our efficiency through digitisation and streamlining. Our operating profit was up 24%, reaching a record AED 519 million. As we focused on asset quality, our credit provisions declined by 30% compared to the previous year. With these strong results, we have laid strong foundations, upon which to continue strengthening the Bank.”
Financial Summary
CBI recorded strong performance in 2018, as a result of a customer experience and relationship focused strategy delivering income growth, cost optimisation and improved asset quality.
CBI’s annual net profit has grown by 29% in 2018 to AED 226 million, compared to AED 175 million in 2017. This resulted from a 7% increase in net operating income from AED 865 million to AED 928 million and a 9% decrease in expenses from AED 448 million to AED 409 million year-on-year.
CBI’s quarterly net profit was also up by 36% from AED 61 million in Q3 2018 to AED 83 million in Q4 2018, mainly driven by a 35% increase in net operating income from AED 225 million to AED 304 million during the same periods.
CBI’s cost income ratio decreased by eight percentage points to 44% in 2018, compared to the previous year. The cost efficiency gains were driven through digitisation, streamlining and a robust overall expense control strategy.
Credit provisions decreased by 30% in 2018, due to a continued focus on strengthening the Bank’s asset quality.
In 2018, total assets increased by AED 2 billion to AED 23 billion, while customer deposits increased by over AED 1 billion to AED 15 billion, due to the successful execution of the initiatives aimed at enhancing the customer experience.
Wholesale Banking’s relationship driven approach resulted in corporate loans and advances to grow by AED 1 billion and corporate customer deposits by AED 255 million. Islamic Banking deposits increased as well, exceeding AED 600 million.
Over the course of 2018, the Bank developed a strengthened offering for CBI First customers, ensuring that client service requests are fulfilled within 24 hours, significantly improving customer satisfaction levels.
The Bank also launched its new state-of-the art branch design to provide a new generation of banking services for Retail Banking and Business Banking customers.
-Ends-
Hiba Moussa
Director
Abu Dhabi l Dubai l Riyadh
Tel: +971 4 442 6034
Mob: +971 54 304 6338
Website: www.finsbury.com l
www.finsbury.com/ar
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