Commercial Bank of Dubai reports $144mln in H1 net profit

Commercial Bank of Dubai (CBD) on Sunday reported a net profit of Dh530.43 million ($144.43 million) for the first half of 2020, down 24.35 per cent compared to Dh701.15 million recorded in the same 2019 period.

In a consolidated interim statement, the bank reported a total operating income of Dh1.411 billion in H1, down from Dh1.51 billion reported in the same 2019 period. Total net income in the first half was Dh916.75 million as against Dh1.129 billion in the same period last year.

In the second quarter, CBD posted Dh215.1 million in net profit as against Dh361.09 million in the corresponding 2019 period. Total operating income for the second quarter dropped to Dh655.32 million year-on-year from Dh736.24 million.

The bank's net interest income and net income from Islamic financing slid to Dh929.43 million in the first half from Dh1 billion a year ago.

For the first quarter 2020, CBD reported a net profit result of Dh315 million, down 7.3 per cent against the same period in 2019. The bank the performance was adversely impacted by low interest rates, weaker business conditions, specific credit events and anticipated impacts associated with the Covid-19 pandemic. "Consequently, impairment allowances taken were Dh240 million for Q1 2020."

Total assets in the first half were Dh93.68 billion as of June 30, 2020, an increase compared to Dh88.07 billion as of December 31, 2019. Loans and advances were Dh63.4 billion, up from Dh60.18 billion as of December 31, 2019. Customer deposits totalled Dh65.31 billion as at June 30, 2020, the statement said.