DUBAI
Commercial Bank International (CBI) on Thursday posted a net profit of Dh125 million for the full year 2016 compared to Dh467 million net loss it made in 2015. The bank also reported a net profit of Dh24 million for the fourth quarter of 2016.
Improved performance last year was driven by an increase in revenues from the customer business, limited expense growth and reduced provisions versus the previous financial year, the bank said in a statement.
“2016 demonstrated the success of CBI’s strategy and completes the first full year of our turnaround story. CBI witnessed strong quarter on quarter growth, in spite of a volatile market environment, strengthened its capital structure and core business, and continued to attract new customers. While the year ahead will continue to present some challenges, the bank is strongly positioned to continue to grow and take advantage of market opportunities as they arise,” stated Mohammad Sultan Al Qadi, Chairman of CBI.
Operating income for 2016 increased by 2.4 per cent to Dh839 million compared to 2015 driven by an 8 per cent increase in customer revenue. Net interest income increased by 3.4 per cent to Dh507 million despite a general increase in cost of funding across the sector.
Retail loan growth for 2016 was 17 per cent and credit card outstanding balances grew by 45 per cent compared to 2015. Net loans and advances for 2016 increased by 15.5 per cent to Dh13.29 billion in 2016 largely driven by business loans, personal loans and mortgage loans.
Customer deposits increased by 25.6 per cent to Dh13.95 billion in 2016 as a result of the bank’s improved products and services mix, and the debt ratings received earlier in the year. Loan to deposits ratio for last year improved to 97.3 per cent compared to 103.7 per cent in 2015, reflecting an improved liquidity position.
Net fee and commission income increased by 10.4 per cent to Dh259 million, and fee and commission income (as percentage of operating income) stood at 30.8 per cent versus 28.6 per cent in 2015, as the bank benefited from the increase in new customers and cross sell.
Bank’s total provisions for the year decreased by 69.6 per cent to Dh256 million compared to 2015.
“CBI today has solid fundamentals, with sustainable growth and strong quality of earnings. Net profit, net interest income and net fees and commissions increased substantially relative to 2015 as we grew our total number of customers by 13.3 per cent, and increased our customer deposits by over Dh2 billion,” stated Mark T. Robinson, CEO of CBI.
