CBD first half-year profits jump 31 % to Dhs566m

The 2nd quarter results jumped 40% to Dhs299m as compared to Dhs213m for the second quarter last year.

The core banking profit increased by 35% to Dhs468m in comparison to Dhs346m for the first half 2007. Net interest income for the period was Dhs512m with a 29% increase over last year's figure for the same period. Fees & Commission grew by 40% when compared to 30th June 2007.

Commenting on the progress of the Bank, CEO - Mr. Peter Baltussen, said: 'We continue with tremendous development across all bank's business lines and this is reflected in the excellent growth of our balance sheet. Loans and Advances grew by 73% compared with June 30th 2007 and 23% compared with last year end figure' Trade Finance levels touched Dhs11.6bn, an increase of 58% compared to 30th June 2007 and 20% when compared to last year end figures.

This robust growth in the loans and advances was translated into an overall 55% increase in total assets which reached Dhs34.2bn compared to Dhs22bn as at the end of the same period of last year, and a 13% increase over the Dhs30.4bn balance as of December 31st 2007. Customer deposits were up by 52% as compared to June 2007 and 18% when compared to last year end figures.

The annualized return on average assets of 3.5% and annualized return on average equity of 24.19% for the period ended 30th June 2008 remained one of the highest in the sector.

Peter Baltussen, CEO of the bank said:

'These strong results are complemented by the fact that our bank won the prestigious Dubai Quality Award - Gold Category in the Financial Services sector for 2007 earlier this year. This win means that we have continuously improved our service quality levels after winning the Dubai Quality Award in 2002, in a constant quest to provide better service to our customers while achieving operational excellence. This award is a clear recognition of our efforts coupled with an ambitious client-centric strategy and we are extremely grateful to the country's leadership and DQA Secretariat for this support.'

It is worth mentioning that the bank has also won the 'New Product Innovation Award' by the Banker Middle East Industry Award 2008 for our innovative home loan product. 'These prestigious awards are milestones in line with our vision to lead the way to greater financial and social prosperity,' added Baltussen.

The bank recently opened its new Sharjah Industrial Branch which brings the total network of CBD branches to 24, including 4 Cash Offices and 130 ATMs which are situated in strategic locations spread across the United Arab Emirates. Within a short span of one year since the launch of our Al Dana Wealth Management Program, the bank has already opened 7 Al Dana Centers, the latest one being opened in our Sharjah Branch. It offers a full range of global and regional investment opportunities to suit the requirements of high net worth customers.