Commercial Bank of Dubai first quarter profit up 22% to Dhs267m

The core banking profit increased by 32% to Dhs222m in comparison to Dhs168m for the first quarter 2007. Net interest income for the period was Dhs246m with a 28% increase over last year's figure. Fees & Commission grew by 35% when compared to 31st March 2007.

Mr. Peter Baltussen, Chief Executive Officer of the Bank said: "CBD continues to make tremendous progress across all bank's business lines and is characterized with excellent growth in the balance sheet. Loans and Advances grew by 11% compared with year end figures and 77% compared with last year." Trade Finance reached the level of Dhs10bn, an increase of 6% compared to last year end and 51% when compared to 31st March 2007.

This robust growth in the loans and advances was translated into an overall 66% increase in total assets which reached Dhs33.4bn compared to Dhs20bn as at the end of the same period of last year, and a 10% increase over the Dhs30.4bn balance as of December 31st 2007. The growth in the asset book has been funded by a combination of increases in customer deposits and shareholders' equity. Customer deposits were up by 53% as compared to March 2007.

The capital adequacy ratio at the end of the period stood at 14.3%, against the minimum of 10% as prescribed by the UAE Central Bank.

The annualized return on average assets of 3.4% and annualized return on average equity of 23.4% for the period ended 31st March 2008 remained one of the highest in the sector.

First quarter also witnessed the execution of a number of strategic initiatives aimed at enhancing our products and services portfolio. In his concluding statement Mr. Baltussen said: "We will open our first 2 Attijari Al Islami centers in Dubai and Abu Dhabi which will offer Sharia compliant products and services. Other Attijari Al Islami Centers are in the pipe line and will be opened during the year."

Earlier this year, CBD also received the "Best Personal Loan" award in the Middle East from Bankers Middle East Bank.

In line with its ambitious growth and expansion strategy, the bank opened its new branch in Old Town in the Burj Dubai district, taking the total number of its branches within the UAE to 22 and expanded its ATM network to 130 ATMs spread around the UAE.

CBD was affirmed at "A" in the latest rating by Fitch. This rating reflects the bank's consistent profitability, satisfactory asset quality and rapid loan growth.