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CBI’s Q1 Operating Profit Up by 52%
Tuesday, April 29, 2014

Commercial Bank International PSC (CBI) announced today its financial results for the three months ended March 31st, 2014, demonstrating continued positive momentum.

CBI reported a Net Profit of AED 72.8 million for the first quarter of this year, wherein its Net Operating Profit recorded AED 120 million, representing an increase of 52% from AED 79 million for the same period in 2013.

Kris Babicci, CBI’s Chief Executive Officer, commented on the results, saying: “CBI’s First Quarter results demonstrate a solid performance as we continue to focus on strengthening our balance sheet and growing the business, while maintaining long-standing relationships with our customers. Our objective is to build, maintain, and grow the Bank through a strategic focus on core businesses and a prudent approach to lending.” He also added: “Risk management is embedded at the centre of our business and it has enabled CBI to re-position itself for any upcoming challenges. We continue to maintain a favorable position against growth expectations in the years to come.”

CBI took substantial provisions of AED 46.9 million against a provision of AED 8.5 million in first quarter 2013. “We are resolutely reducing risk and legacy encumbrances as we shift the Bank into a more efficient and effective business model and back in sustainable profit territory,” said Babicci.

The Bank’s achieved profitability was partly due to a witnessed growth in Assets, which stood at AED 15.4 billion by end of March 2014, an increase of 4% compared to AED 14.8 billion at the end of December 2013.

Loans & Advances increased by 2% to AED 10.8 billion compared to AED 10.6 billion at the end of December 2013, while Customer Deposits reached 10.3 billion by end March 2014 against AED 10.5 billion in December 2013.

As of 31 March 2014, CBI reported strong revenue growth with an increase of 5% in Interest Income by end March 2014 compared to the corresponding three-month period in 2013, mainly due to the increase in Loans & Advances. Interest Expense decreased by 25% as compared to First Quarter 2013. The Bank managed to reduce interest cost through a renewed focus on increasing the customer base of CASA deposits and obtaining low cost customer time deposits.

Net Fee and Commission Income increased by 10% compared to end March 2013, driven by an increase in LCs and Acceptances. Other Operating Income increased by AED 20 million mainly due to fair valuation gain on investments.

Shareholders’ equity increased by 4% to AED 2.3 billion as compared to AED 2.2 billion at the end of December 2013. The Bank maintained a Capital Adequacy ratio of 14.2% as per Basel II, which remains well above the 12% limit mandated by the Central Bank of the UAE. Advances-to-stable-resources ratio is maintained at 0.98:1 as against the Central Bank requirement of 1:1.

Earnings per share recorded 0.046 at the end of March 2014, representing a 5% increase against end of March 2013.

CBI was awarded the title of ‘Fastest Growing Bank in the UAE’ and ‘Most Improved Bank in the MENA Region’ on the much coveted Banker Middle East Industry Awards 2013. The awards were based on the quantitative analysis of key measure indicators such as assets, liabilities, total income, net attributable profit and return on assets, collating data on real size, real growth, and percentage growth to identify the region’s leading financial institutions.

 

 

For further information, please contact:


Anna Theresa Langford
Head of Customer Experience & Corporate Communications
+971 4 402 3170
Email: Anna.Langford@cbi.ae

Will Anderson
Director
Brunswick Gulf Ltd
+9712 234 4600
Email: CBIGulf@brunswickgroup.com


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