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CBI first-half profit soars 22% to Dh108.7 million

Commercial bank International, or CBI, on Tuesday demonstrated continued positive momentum in 2014 first-half results as net profit soared 22 per cent to Dh108.7 million compared to Dh88.9 million in corresponding period last year.

In a statement, the banks said net operating profit recorded 82 per cent growth in January-June 2014 period and reached Dh220 million from Dh121 million in same period of 2013.

“CBI’s first-half results reflect a solid performance and are in line with the strategic plans we have set for the bank. We continue to develop and streamline our operations and focus on our core values to ensure we exceed stakeholder expectations,” said Kris Babicci, chief executive officer of CBI.

The bank’s achieved profitability was partly due to a witnessed growth in assets, which stood at Dh16.7 billion by end of June 2014, an increase of 13 per cent compared to Dh14.8 billion at the end of December 2013.

Loans and advances increased by 11 per cent to Dh11.8 billion as at June 30, 2014, compared to Dh10.6 billion at the end of December 2013, while customer deposits increased by 16 per cent to reach Dh12.1 billion by end June 2014 against Dh10.5 billion in December 2013.

“The first half of this year has been extremely active for CBI as our profit reflects growth across all the bank’s business lines. I believe we have further underlined the bank’s status as a very dynamic institution,” Babicci said.

He said CBI’s success has been achieved through the bank’s commitment to expand its offerings and diversifyits revenue streams, while delivering first-class financial services and products and maintaining long-standing relationships with customers.

The bank also reported strong revenue growth to reach Dh339 million in interest income by end June 2014, an increase of four per cent compared to Dh325 million for the corresponding six-month period in 2013, mainly due to the increase in loans and advances. Interest expense decreased by 24 per cent to Dh78 million in first half of 2014, as compared to Dh102 million in similar period last year.

The bank managed to reduce interest cost through a renewed focus on increasing the customer base of Casa deposits and on obtaining low cost customer term deposits and inter-bank. Net fee and commission income increased by 13 per cent compared to Dh96 million in first half 2014 from Dh85 million end June 2013, driven by an increase in LCs and acceptances. Other operating income increased by Dh54 million as compared to the first half of 2013 mainly due to fair valuation gain on investments.

Shareholders’ equity increased by five per cent to Dh2.3 billion as compared to Dh2.2 billion at the end of December 2013.

The bank maintained a capital adequacy ratio of 13.17 per cent as per Basel II.

— muzaffarrizvi@khaleejtimes.com