Dubai: Commercial Bank of Dubai (CBD) on Wednesday reported a 16 per cent increase in its net profit for the first quarter of 2014 to Dh284.8 million from Dh245.5 million in the first quarter of 2013.
The bank’s operating profit increased by 1.4 per cent from Dh361 million in the first quarter of 2013 to Dh366 million in the first quarter of this year, on the back of a 4 per cent increase in net interest income to Dh373.3 million and a 10 per cent increase in non-interest income to Dh156.5 million.
Though operating expenses increased to Dh163.7 million, 16.6 per cent compared to first quarter 2013 figures, the cost to income ratio was steady at 30.9 per cent.
Loans and advances in the first quarter of this year grew 7.2 per cent to Dh29.9 billion compared to Dh27.9 billion in the first quarter of 2013. Customers’ deposits of Dh30.5 billion for the first three months of 2014 was up 8.8 per cent compared to Dh28.1 billion in the first quarter of last year.
“CBD’s first quarter 2014 performance is underpinned by our efforts to strengthen existing relationships even as we diversify our business. Gross loans to personal clients increased by 35 per cent over March 2013, with particular emphasis on the affluent segment,” said Peter Baltussen, Chief Executive Officer of CBD.
In the first quarter of this year, CBD’s liquidity continued to be comfortable with advances to stable resources ratio of 81.3 per cent compared to 80.9 per cent in the same period last year.
CBD’s capital adequacy ratio and tier 1 capital ratio were at 19.8 per cent and 18.4 per cent respectively and were significantly above the regulatory thresholds of 12 per cent and 8 per cent mandated by the UAE Central Bank.
Return on average assets for the quarter ended 31 March 2014 improved to 2.6 per cent from 2.5 per cent for the first quarter 2013. Return on average equity increased to 16.8 per cent for the quarter of this year compared to 15.5 per cent in the first quarter of 2013.
