Sunday 05, November 2017 by Jessica Combes

CBI continues profitable growth in Q3 2017

 

Commercial Bank International (CBI or ‘The Bank’) announced its financial results for the nine months ended 30 September 2017.

“CBI continues to grow in a near flat market. The 10 per cent year-on-year increase in customer deposits demonstrates our commitment to building long-term relationships with our customers to better meet their financial needs. Additionally, the strong growth in net interest income and FX income has helped to deliver our positive results. I am confident in CBI’s strategy to continue growing core business segments and focus on the UAE’s leading companies,” said Mohammad Sultan Al Qadi, Chairman of CBI. 

Q3 2017 Financial Highlights:

  • Net Profit increased four per cent year on year to AED 33 million in Q3 2017; Year to date Net Profit totalled AED 86 million.
  • Net Interest Income increased by 13 per cent to AED 145 million from AED 128 million in Q3 2016; up five per cent on Q2 2017.
  • Net Loans & Advances increased by two per cent to AED 13,501 from year end 2016; up two per cent year on year.
  • Customer Deposits increased by two per cent to AED 14,169 million from year end 2016; up 10 per cent year on year.
  • Operating Income increased by one per cent to AED 215 million versus in Q3 2016; up six per cent on Q2 2017.
  • Operating Profit increased by one per cent to AED 97 million versus Q3 2016; up seven per cent on Q2 2017.
  • Strong Eligible Liquid Assets Ratio at 12.2 per cent.
  • Capital Adequacy Ratio stable at 14.7 per cent.

“CBI’s continued strategy of enhancing customer experience, and optimising our resources, has helped the bank strengthen our competitiveness. Our customers are now benefiting from CBI’s core banking system upgrade, which has significantly modernised the bank’s operations and technology and streamlined services. Our strategy to grow our UAE customer base remains on track,” said Mark T. Robinson, CEO of CBI.

Financial summary:
Operating Income grew by six per cent to AED 215 million versus the previous quarter. Income growth was principally driven by strong growth in net interest income and forex income and partly offset by lower one off fees from syndications. 

Significant investments in digital infrastructure, people, and processes, have propelled the bank forward over the first nine months of the year and generated healthy increases in loan growth and customer deposits. The bank’s YTD Loan and Deposit growth is ahead of industry average, thanks to the focus on our core segments and the increasing attractiveness of our digital offering and online presence.

Net Loans and Advances grew two per cent year-on-year to AED 13,501; versus a flat domestic credit growth. The year-on-year growth in Customer Deposits (up 10 per cent to AED 14,169 million) is also above the industry average growth of 1.2 per cent. Net interest income increased 13 per cent to AED 145 million when compared to Q3 2016. 

Net Profit was up four per cent from Q3 2016, at AED 33 million, and up five per cent from Q2 2017. YTD Net Profit at AED 86 million was down 15 per cent from the previous year as higher provision charges, necessitated by market conditions, impacted bottom line performance.

The NPL Ratio increased to 9.9 per cent owing to local business pressures experienced across the UAE market. The Loan to Deposit ratio stood at a comfortable 95.3 per cent level. 

CBI has strong liquidity and capital, evident from the Bank’s high Eligible Liquid Assets Ratio (ELAR) at 12.2 per cent, and Capital Adequacy Ratio well above the minimum regulatory requirement at 14.7 per cent.

CBI maintains an investment grade rating of BBB+, from Fitch Ratings and A- from Capital Intelligence.