Commercial Bank of Dubai 9-month net profit up 1pct

Commercial Bank of Dubai (CBD) said today its net profit after allowances for non-performing loans amounted to Dh777 million for the first nine months of 2011, up one per cent over the same period in 2010.

The bank attributed the growth from lower funding cost. The bank also gave credit to its emphasis on non-interest income which resulted in the growth in fees.

Non-interest income for the first nine months of 2011, which ended September 30 rose by 7.2 per cent when compared to the same period last year, it said in a statement.

Commenting on the results, Peter Baltussen, Chief Executive Officer said in the statement, “CBD has continued to perform well and the Bank has sustained its strong financial returns, as evidenced by the high return on assets and equity ratios. Our continued focus on liquidity and capital management has enabled us to further strengthen our balance sheet and to focus on growing our portfolio.”

He added, “In order to maintain adequate liquidity and a diversified funding base, the bank renewed its medium term facility in the third quarter, which was initially launched at $400m. The facility was oversubscribed and attracted $450m in commitments highlighting investors’ confidence in the Bank’s strength and performance.”

Total assets reached Dh37.7 billion as at September 30, 2011 to reflect a one per cent growth over Dh37.4bn as at September 30, 2010.

Loans and advances stood at Dh26.3bn as at the end of September 2011, while customers’ deposits were at Dh27.9bn.

The bank said it continued to build its provisioning levels with an impairment allowance of Dh227m for the first nine months of the year. Non-performing loans are covered up to 88.2 per cent by provisions against potential losses and collateralised by tangible securities.