CBD's H1 net profit rises 5%

Peter Baltussen, the bank's Chief Executive Officer.

Commercial Bank of Dubai, or CBD, recorded five per cent rise in net profit to Dh609.8 million for the first half of 2015.
The bank said on Wednesday that operating profit grew  6.5 per cent  to Dh764 million while loans and advances grow by 18.2 per cent to Dh37.9 billion. 
The bank's net profit for the second quarter of 2015 was 6.2 per cent higher at  Dh314.7 million as compared to Dh296.3 million for the second quarter of 2014.
In a statement, the bank said operating income for the six months period was 12.4 per cent higher at Dh1.18 billion as compared to Dh1.05 billion for the same period last year.
The bank said operating profit increased mainly due to an 8.3 per cent growth  in Net Interest Income to Dh802.4 million following balance sheet growth and a 22.2 per cent increase in non-interest income to Dh380.2 million with a significant increase in fees and commission (+34.3 per cent) as well as increase in foreign exchange income (+18.6 per cent).
Operating expenses increased by 25.1 per cent from Dh334.6 million. The bank's personal banking strategy entails investments in its sales force, distribution network and digital banking platform. "These investments led to a significant growth of the personal banking loan portfolio. The bank has also invested in specialist resources to support its corporate banking growth strategy. Cost to income ratio stood at 35.4 per cent," CBD said in a statement..
The bank's total assets of Dh 51.6 billion as at 30 June 2015 were 11.4 per cent higher when compared to Dh46.3 billion in the same 2014 period and 10 per cent higher when compared to the Dh46.9 billion as at the end of last year.
Peter Baltussen, the bank's Chief Executive Officer, said,  CBD's net profit has consistently grown over the last quarters and our performance demonstrates the continued improvement and momentum across business lines. "In the first half of 2015 CBD has underwritten new loans of Dh11 billion increasing its loans and advances at a significantly higher than market rate of growth. With an increasing contribution from personal banking and business banking to the Bank's income, CBD is positioned to deliver a robust performance in the coming years."
Baltussen  said as part of CBD's journey to further improve customer engagement, CBD has invested in world-class technology solutions that help to provide customers with digital experiences. "CBD's efforts in this field have been recognised internationally with the International Business Excellence Awards and Bankers Middle East Awards."
In the first half, loans and advances  rose 21.5 per cent to Dh 37.9 billion compared to Dh31.3 billion as at 30 June 2014 and 18.2 per cent higher than the Dh 32.1 billion as at 31 December 2014.
The bank said customers' deposits of Dh35.6 billion  were 10.4 per cent higher when compared to Dh32.3 billion as at 30 June 2014 and 10.8 per cent higher than the Dh32.2 billion as at the end of last year.
"Capital adequacy ratio continues to be robust at 17.9 per cent. Return on average assets and average equity was 2.5 per cent and 16.2 per cent respectively while cost to income ratio was at 35.4 per cent in line with the market average," the bank said. - issacjohn@khaleejtimes.com