CBI reports profit of Dhs320.6m

The attending shareholders approved the financial report of the bank for the year ended December 31, 2007.

In his speech, Hamad Abdulla Al Mutawa, Chairman of the Board of Directors, looked back on a successful year and record results for CBI. "2007 marks another year substantial achievement for CBI. We recorded remarkable growth in all our core business units; our financial results and ratios were at their best compared with the competition in the industry."

CBI announced an increased net profit of Dhs320.6m compared to 8.7m of 2006; and approved 15% bonus shares and a 5% cash dividend for its shareholders. CBI's customers' deposits grew by 57 to reach Dhs8.3bn in 2007 compared to Dhs5.2bn in 2006.

CBI's earnings per share in 2007 based on share capital registered at 0.30 fils in 2007 compared to 0.02 fils in 2006. Total assets grew by 51% to Dhs11.1bn ($3.03bn) as of 31 December 2007, compared to Dhs7.3bn ($2.0bn) in 2006.

The meeting saw the chairman unveil CBI's new annual slogan and focus for 2008. "This year, we have identified - 'Relationships beyond Banking' - as CBI's slogan for success - this will form the core of our strategy, values, and internal culture," he said.

Reiterating its continued commitment to banking excellence and operational efficiency, CBI confirmed the successful implementation of a new core banking system that will fully commence operations this year. A turn key project for CBI, the new Core Banking Solution was deployed by Silverlake's advanced technology; qualifying the initiative as the largest system upgrade undertaken by a bank in the UAE.

As part of its network expansion CBI launched two new branches (Fujairah and Al Taawon, Sharjah) and increased its ATM network to 41 machines this year. 2008 will see the ATM network increase to 56.

"Our priorities through the course of 2008 will be to continue to improve the quality of advances through the reduction of the ratio of non-performing loans; where a series of policy measures have been introduced, which included improvement of the credit assessment process as well as the issue of new advances and strengthening the Debt Collection Services," said Motawa.

CBI's investment plans also include strategic goals to specialise in brokerage services and real estate with their wholly owned brokering subsidiary - International Financial Brokerage (IFB) and property company - Takamul Real Estate, formed in 2006, to oversee the bank's property management services.

Chairman Motawa closed the session by thanking the government, shareholders, his colleagues on the board as well as the Bank's executive management and all staff for their hard work during 2007 - giving them the credit for CBI's outstanding results and setting a successful and ambitious strategy going forward.