RPM reported net profit of Dh49.39 million during 2023
business2 days ago
Commercial Bank of Dubai (CBD) has delivered a record net profit of Dh1.825 billion for the year ended December 31 2022, reflecting a year-on-year increase of 25.8 per cent.
Stronger revenue across net interest and other operating income generated a significant increase in net profit. Notably, market interest rates have risen sharply, which contributed to the solid financial performance for the year.
The Dubai-based lender said its operating income rose 19.8 per cent to Dh3.812 billion due to higher net interest income and improved fee and commission income. However, operating profit climbed 21.5 per cent to Dh2.816 billion.
The bank also announced record cash dividend of 26.05 per cent and bonus shares of 6.51 per cent for the shareholders.
Dr Bernd van Linder, chief executive officer, said CBD has accomplished a strong result attributable to robust revenue growth and improved business performance.
“Overall, our net profit was Dh1.825 billion, well above the prior year on account of higher net interest income and a solid operating performance. We continue to remain focused on the disciplined execution of our strategy to back sequential growth in earnings and shareholder returns in the periods ahead,” he said.
“Digital transformation and innovation in banking services are instrumental in our ongoing success, and we will continue to drive digital leadership and develop innovative banking solutions to ensure we provide our customers with a high-quality seamless banking experience,” he said.
The bank’s operating expenses amounted to Dh997 million, with the increase driven by investments in digitisation, business growth, risk management and governance. The cost-to-income ratio remains excellent at 26.14 per cent.
Total assets rose 1.6 per cent to Dh116.1 billion as at 31 December 2022 compared to Dh114.2 billion as at December 31, 2021. Net loans and advances were Dh74.6 billion, registering a decrease of 2.4 per cent compared to Dh76.4 billion as at December 31, 2021.
Customers’ deposits were Dh81.1 billion as at December 31, 2022, representing a decrease of two per cent compared to Dh82.7 billion as at December 31, 2021. Low-cost current and savings accounts constitute 47.4 per cent of the total customer deposit base, while the financing-to-deposits ratio stood at 92 per cent.
The non-performing loan (NPL) ratio decreased to 6.73 per cent, down from 6.95 per cent at the end of 2021. The net impairment charge totalled Dh991 million for the year ended December 31, 2022.
The bank’s liquidity position remained robust with the advances to stable resources ratio at 87.09 per cent as at December 31, 2022 compared to 88 per cent in the same period of 2021.
— business@khaleejtimes.com
RPM reported net profit of Dh49.39 million during 2023
business2 days ago
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