Dubai - Commercial Bank International (CBI or ‘The Bank’) today announced its financial results for the first quarter (Q1) 2017.
Financial highlights – three-months ended 31 March 2017:
· Operating Income increased by 9% to AED 203 million versus AED 187 million in Q1 2016.
· Net profit of AED 21 million.
· Net interest income increased by 10% to AED 126 million versus AED 114 million in Q1 2016.
· Operating Profit increased by 13% to AED 92 million versus AED 81 million in Q1 2016.
· Net Loans and Advances increased by 3% to AED 13,689 million from year-end 2016.
· Customer Deposits increased by 4% to AED 14,504 million from year-end 2016.
· Capital Adequacy Ratio remained stable at 14.6%.
Mohammad Sultan Al Qadi, Chairman of CBI, commented on the Bank’s performance: “CBI’s strategy of focusing on the customer continues to drive the business forward and attract new customers, resulting in a 6% increase in our total number of customers in Q1 2017. Overall, our total number of customers has increased by nearly 20% in the last twelve months. The substantial increase in our operating profit is a testament to the strength of CBI’s core business, and to the bank’s commitment to continue to provide products and services to meet our customers’ evolving demands.”
Mark T. Robinson, CEO of CBI, added: “The bank’s underlying business continues to perform well and through improved service delivery, we have increased our share of the market during the first quarter of the year. CBI’s assets grew by 20% compared to Q1 2016, while customer deposits likewise increased by 22% over the same period. Growth was partly driven by the strong performance of our retail business where new-to-bank customer acquisition nearly doubled in Q1 2017 as compared to Q1 2016. While the macro-economic environment continues to present some Overall, we are pleased with the bank’s performance against industry benchmarks.”
Financial Summary
Net Interest Income increased by 10% to AED 126 million versus AED 114 million in Q1 2016 despite a general increase in cost of funding across the sector.
Net Fee and Commission income for Q1 2017 decreased by 12% to AED 57 million, and Fee and Commission Income (as percentage of operating income) stood at 27.9% versus 34.3% in Q1 2016.
Operating Expenses for Q1 2017 increased by 5% to AED 111 million versus Q1 2016 as the bank continued to invest in its sales force in order to attract new customers.
CBI’s Operating Profit in Q1 2017 increased by 13% to AED 92 million compared to AED 81 million in Q1 2016 driven by the strong performance of the retail business.
Net Profit totaled AED 21 million for Q1 2017 versus AED 37 million in Q1 2016 as the bank was impacted by higher gross provisions due to challenging market conditions, and the timing of recoveries.
Customer Deposits increased 4% from the year-end 2016 and by 23% over the last 12 months to total AED 14,504 million as the bank continued to attract new customers and build on the debt ratings received last year.
Net Loans and Advances for Q1 2017 increased by 3% from year-end 2016 and by 12% over the last 12 months to total AED 13,689 million largely driven by business loans, personal loans and mortgage loans.
Loan to Deposits Ratio for Q1 2017 was 94.4% versus 103.6% in Q1 2016, reflecting an improved liquidity position.
Non-Core Assets for Q1 2017 stood at AED 746 million decreasing by 24% from the same period in 2016 as the Bank continued to deliver on its strategy of divesting non-core businesses.
The Capital Adequacy Ratio in Q1 2017 remained stable at 14.6%.
-Ends-
About Commercial Bank International (CBI)
CBI is a well-established corporate and retail bank, with a growing SME and Islamic banking business. The Bank was incorporated in 1991 in the Emirate of Ras Al Khaimah and is headquartered in Dubai. CBI shares are listed on the Abu Dhabi Securities exchange (ADX) and the Bank has a long-term issuer default rating of A-, with a Stable Outlook from Fitch Ratings.
Since 2012, CBI has had a strategic partnership with Qatar National Bank (QNB), a 40% shareholder and the largest Bank in the MENA region.
CBI offers a comprehensive portfolio of banking products, as well as tailor-made financial solutions in corporate, Islamic and retail banking - ranging from lending, trade services, cash management and treasury solutions to personal account services, credit cards and finance for homes.
CBI operates through a network of 27 branches with a presence across all seven Emirates in the UAE.
For further information, please contact:
Anna Langford
Head of Corporate Communication & Customer Experience
+971 4 212 6101
Email: anna.langford@cbi.ae
© Press Release 2017
