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Commercial Bank Of Dubai Profit Slips 12pc

DUBAI - The Commercial Bank of Dubai reported 12 per cent decline in its 2009 first-quarter net profit on Thursday, which fell to Dh233.9 million down from Dh266.9 million over 2008 during the same period.

The lender’s earnings per share dropped 13.3 per cent to Dh0.13 for the first-quarter of the year compared to Dh0.15 during the same quarter in 2008, the bank said in a statement.

The bank announced an increase of 5.4 per cent in its operating profits to Dh289.3 million compared to Dh274.6 million in the same period of 2008.

The total assets stood at Dh38.2 billion by the end of March 2009, a 14.2 per cent growth over March 2008. Loans and advances grew to Dh28.4 billion, an increase of 23.4 per cent compared with the same period last year and customers’ deposits increased by 22.3 per cent to Dh28.2 billion.

The bank remains well capitalised with a Tier 1 capital adequacy ratio of 13.1 per cent, comfortably above the required minimum levels as stipulated by the Central Bank of the UAE.

During the quarter, the market value of some of the Bank’s strategic equity investments in locally listed companies declined and although the respective companies are performing well, the Bank has booked an impairment loss of Dh34.8 million in line 
with IFRS.

abdulbasit@khaleejtimes.com