CBI posts 154% jump in H1 profit as deposits, loans up

Commercial Bank International, or CBI, declared a significant 154 per cent jump in its net profit on Sunday for the first half of the year.

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Published: Mon 30 Jul 2012, 10:57 PM

Last updated: Tue 7 Apr 2015, 11:10 AM

The UAE bank reported a net profit of Dh141.3 million for the first six month period ended June 30, 2012 as compared to Dh55.7 million reported during the corresponding period in 2011. As a three month period of second quarter of 2012, the bank also announced a 13.7 per cent increase over March quarter.

“We continue to see improved performance and volume growth and the results are in line with our plan for the year. We will open five new branches in strategic locations around the UAE before the end of the year. This will enhance accessibility to our customers and visibility to new customers. Our focus remains on the risk and cost management,” CBI chief executive officer Kris Babicci said in a statement.

Total assets of the bank grew by Dh599 million reaching Dh12 billion as at June 30, 2012, compared with December 31, 2011. Total customer deposits during the first half of 2012 increased by 8.5 per cent to Dh9.2 billion, while net loans and advances to customers increased to Dh8 billion. The earnings per share increased 150 per cent to 10 fills compared with June 30, 2011.“The board has great confidence in the management team; the successful strategy continues to show impressive results quarter to quarter,” said CBI chairman Mohammad Sultan Al Qadi.

Throughout 2012, CBI is working on strengthening its balance sheet with strong capital adequacy, high liquidity and low advances to deposits ratio. CBI’s capital adequacy ratio remained strong at 16.8 per cent and maintained a comfortable liquidity position of Dh1.6 billion at the end of June 30, 2012. Advances to stable resources ratio was maintained at 0.84:1 as to the Central Bank of the UAE requirement of 1:1.

“The bank’s strategy is focused on the growth of our network and core banking activities while maintaining a strong liquidity position to take advantage of quality opportunities. Liquidity is managed well and the bank’s key regulatory ratios are in accordance with Central Bank of the UAE requirements,” Babicci said.

CBI also announced the launch of a strategic alliance with Oman Insurance Company to market a range of insurance products. The agreement will enable the bank to offer customers a complete range of insurance products through its retail network.

In March this year, CBI was awarded “The Best Personal Loan” award by the Banker Middle East, the region’s leading banking industry media title. The awards ceremony was held on March 27, at the Emirates Towers hotel in Dubai.

CBI has been successfully running its National Development Programme, which is a training programme for UAE nationals, since 2005.

The programme is aimed at recruiting and training UAE nationals who wish to pursue a career in banking. On-the-job training and job rotation is given to UAE Nationals across the bank. They spend three months training in the CBI Training Academy followed by a period of on-the-job training.

“We invest great efforts in Emiratisation to transfer banking and financial knowledge and experience to the young local generation. These young people are becoming valued bankers and will be an asset to our industry”. Babicci commented.

abdulbasit@khaleejtimes.com



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