CBI profits jump 108%
Monday, May 21, 2012
Commercial Bank International (CBI) reported a net profit of AED 66.1 million, up 108%, for the three month period ended March 31, 2012 as compared to AED 31.8 million reported during the corresponding period in 2011.
Total assets grew by AED 451 million reaching AED 11.9 billion as at March 31, 2012, compared with Dec 31, 2011. Total customer deposits during the 1st quarter increased by 6.4% to AED 9 billion, while net loans and advances to customers increased by 3.25% to AED 8.1 billion.
Kris Babicci, Chief Executive Officer of CBI said "We have seen improved performance and volume growth over last year and the results are in line with our plan for the year. We expect the trend to continue. We are optimistic in our outlook and are working to enhance our value propositions and service offerings to our customers. Our focus remains on the management of risk and a rigorous approach to cost management".
"The Bank’s strategy focused on the growth of our core banking activities while maintaining a strong liquidity position to take advantage of quality lending opportunities. The liquidity was managed well and the Bank’s key regulatory ratios are in accordance with Central Bank of the U.A.E. requirements." Babicci continued.
In the past year, CBI strengthened its balance sheet with strong capital adequacy, high liquidity and low advances to deposits ratio. CBI’s capital adequacy ratio remained strong at 16.7% and maintained a comfortable liquidity position of AED 1.3 billion at the end of March 31, 2012. Advances to stable resources ratio was maintained at 0.88:1 as to the Central Bank of the U.A.E. requirement of 1:1.
Commenting on the performance, H.E. Mohammad Sultan Al Qadi, Chairman of Commercial Bank International said: "The board has great confidence in the management team and in less than a year, the strategy has started to show impressive results. The earnings per share increased 104.4% to AED 0.047 this quarter compared to the first quarter of 2011. We anticipate that this growth will continue at the same rate until at least the end of 2012".
In the 1st quarter of 2012, CBI launched a new home loan product to its retail customers and rearranged its savings account awards program (Mabrook) by dedicating AED 1.5 million to be won during 2012. The Bank also received the prestigious Best Personal Loan product award from the Banker Middle East in March 2012. The Bank also contributed to the community in areas of health, education and social assistance in its commitment to corporate social responsibility.