Commercial Bank of Dubai operating profit increased by 6.6% to Dhs915m for the nine month period ended 30th September 2009

The Bank's net interest income of Dhs986m was 22% over the same period of last year and fees and commission grew by 2.8% when compared to end of September '08. The net profit, after collective and specific provisions for non-performing loans and investments amounted to Dhs757m as compared to Dhs826m, a year earlier.

Loan impairment charges for the nine month period under review increased to Dhs139m out of which collective provisions represented Dhs61m. The provisions coverage ratio against potential losses improved to 96% compared to 90.6% for the same period last year, while the net non-performing loans to total loans stood at a low 1.2%. In the first 9 months of the year the operating expenses increased by only 3.7% year on year, while the cost to income ratio improved to 30.6% from 31.2% a year earlier.

Chief Executive Officer, Mr. Peter Baltussen, said:

"CBD has again produced a solid set of results and we have maintained our good profitability ratios and the sustained growth of our core business despite the challenging economic climate. We are strongly committed to steer our clients through the economic downturn in the best way possible."

He added, "We also believe that the present economic circumstances give us an opportunity to further improve the service quality and efficiency of our operations, while we are confident about the future which is underlined by our expansion plans to open several additional Islamic windows and 2 conventional branches in the months ahead."

The total assets of Dhs37bn by the end of September reflect a 1.7% growth over Dhs36.4bn as at 30th September 2008. Loans and Advances grew by 0.8% compared with September '08 to Dhs28.7bn and customers' deposits were up by 13.6% compared to Dhs27.7bn. The Bank's capital adequacy ratio remains strong with a Tier I adequacy ratio of 13.2%, comfortably exceeding the UAE Central Bank's regulations. The return on average equity at 20.5% and return on average assets at 2.8% are among the highest in the country.

Established in the UAE in 1969, Commercial Bank of Dubai PSC offers a wide range of commercial and consumer banking products and services through a network of 24 conventional branches, 3 Islamic Branches, 2 Cash Offices and 156 ATMs in the UAE. The Bank is listed in DFM and fully owned by UAE Nationals, including 20% by the Government of Dubai.

CBD key financial highlights for nine months ended 30th September 2009

• Operating profit was Dhs915m (+6.6%).
• Net profit for the first 9 months of 2009 amounted to Dhs757m (-8.4%), 3rd quarter net profit in 2009 was Dhs255m (-2%).
• Net Interest Income was Dhs986m (+ 22%).
• Total assets stood at Dhs37bn (+1.7%), loans and advances at Dhs28.7bn (+0.8%) and customer deposits at Dhs27.7bn (+13.6%).
• The net non-performing loan ratio stood at 1.2% while loan impairment charges for the first 9 months of 2009 were Dhs139m.
• Coverage ratio for non-performing loans improved to 96% (+6%).
• Cost to income ratio improved to 30.6% (Favourable 2%).