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CBD Operating Profit Rises 6.6pc to Dh915m

DUBAI — Commercial Bank of Dubai, or CBD, announced on Wednesday that its operating profit surged by 6.6 per cent to Dh915 million in the first nine months, compared to the same 
2008 period.

The bank’s net profit, however, dropped 8.35 per cent to Dh757 million from Dh 826 million a year earlier. The net profit is after collective and specific provisions for non-performing loans and investments, a bank statement said. Net interest income rose 22 per cent to Dh986 million in the first nine months compared to the same period of last year, while fees and commission grew by 2.8 per cent.

CBD’s Chief Executive Officer Peter Baltussen said the bank could again produce “a solid set of results.” The bank maintained its “good profitability ratios” and the sustained growth of its core business despite the challenging economic climate, he added. “We are strongly committed to steer our clients through the economic downturn in the best way possible.”

Loan impairment charges for the nine-month period under review increased to Dh139 million out of which collective provisions represented Dh61 million. The provisions coverage ratio against potential losses improved to 96 per cent compared to 90.6 per cent for the same period last year, while the net non-performing loans to total loans stood at a low 1.2 per cent, the 
banks said. Baltussen said the current economic circumstances gave the bank an opportunity to further improve the service quality and efficiency of operations. “.. we are confident about the future which is underlined by our expansion plans to open several additional Islamic windows and two conventional branches in the months ahead.”

issacjohn@khaleejtimes.com