CBI’s net profit increases to AED 101 Million in the first nine months of 2016
Monday, October 31, 2016
Commercial Bank International (CBI or ‘The Bank’) today announced its third quarter (Q3) 2016 financial results.
Mohammad Sultan Al Qadi, Chairman of CBI commented on the Bank’s performance: “CBI continues to deliver strong financial results driven by a robust core business that is growing sustainably quarter on quarter, prudent cost management, and an experienced leadership team. Additionally, the bank continues to focus on enhancing customer experience by providing unique and personalised banking services to our increasingly diversified customer base.”
Mark T. Robinson, CEO of CBI commented: “In spite of a challenging market environment, CBI has maintained momentum since the beginning of the year, generating a net profit for the third quarter of AED 32 Million. We have successfully grown our customer base while strengthening our balance sheet and positioning the bank for continued growth in the year ahead. As a result of the successful implementation of our strategy, the bank’s strong financial health has been affirmed by two external rating agencies, which have both assigned an investment grade rating to CBI.”
In Q3 2016, CBI’s net profit reached AED 32 Million and YTD increased to AED 101 Million supported by growth in the Bank’s wholesale and retail businesses, significantly reduced provisions, an increase in customer deposits and robust expense management.
Revenue for Q3 was AED 212 Million, an increase of 4.2% over the same period last year, driven primarily by the wholesale and retail business. The wholesale business continues to benefit from growing synergies with Qatar National Bank, while growth in new customers as well as the credit card business drove the improved performance in the retail business. Revenue YTD is AED 610 Million down 4.3% from the year before, mainly due to the one off revenues from the sales of non-core assets in H1 2015.
Customer deposits increased by 9% during Q3 and 16% YTD to reach AED 12,918 Million, compared with AED 11,105 Million in December 2015, as the bank continues to attract new customers.
Net loans and advances increased by AED 1,726 Million (15%) to AED 13,232 Million versus AED 11,506 Million in December 2015 largely driven by business loans, followed by personal and mortgage loans.
CBI’s expenses of AED 116 Million for Q3 are 1.3% below the same period last year, YTD expenses were 335 Million or 1.7% above the same period in 2015 as the Bank’s cost management efforts delivers results.
Non-performing loans (NPLs) decreased by 6.5% to AED 1,296 Million compared with AED 1,387 Million as of September 30th 2015, while the Non-Performing Loan ratio decreased to 8.4% from 9.5%.
Capital Adequacy Ratio remained stable at 14.3% versus 14.8% as of December 31st 2015.