AED 822 million profit «Dubai Commercial» last year

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Commercial Bank of Dubai today announced financial results for the year ended December 31, 2011. The Net profit for 822 million dirhams in 2011 compared to AED 820 million for the year 2010, this has contributed to the low cost of funding in addition to growth in operating income from non-interest in achieving this growth, grew operating income of non-interest rate of 2.2%.

Including revenue grew from fees and commissions increased by 3.6% while revenue grew from dealing in foreign currencies by 26% It is noted that operating income from non-interest accounted for 28% of the total revenue for the year 2011. The Board of Directors proposed the distribution of cash dividends by 20% of the capital of the bank.

As in the December 31, 2011 to be approved this proposal during the annual general meeting of the Bank and sperm held on March 14, 2012. The bank said in a statement that these results are subject to the approval of the Central Bank of the UAE, was announced after a meeting of the Council of Administration the bank yesterday.

Financial position

The total assets of AED 38.2 billion at December 31, 2011. And loans and advances amounted to 26.8 billion dirhams at the end of December 2011, while customer deposits amounted to 28.4 billion dirhams. The Bank’s high levels of liquidity, where liquid assets represented 18% of total assets.

In addition to the strong rate of lending to stable sources of funds increased by 82.8% and this percentage is less than the standard 100%, the maximum allowed by the Central Bank of the UAE. The renewal of the bank loan agreement and the collective amount of $ 400 million, which exceeded the threshold required for the subscription of $ 450 million, reflecting investor confidence in the bank.

Commenting on the results of the bank, said Peter Baltussen – Chief Executive Officer of the Bank: “The Bank continued to achieve results satisfactory financial year after the other in spite of the circumstances and operational challenges difficult. That the strong capital base of the bank coupled with the management actors of the financial position led to a marked improvement in the level of liquidity and solvency ratios at the bank. ”

Baltussen said, “The Bank’s management for actors operating expenses during the year led to a satisfactory ratio of operating efficiency at 30.4%. Also, the strong financial indicators at the bank allow him to continue to ensure that growth returns to its shareholders.”

Deductible provisions

As part of its efforts to strengthen its financial position and credit policies in line with the conservative grass roots and requirements relating to deductibility provisions. The bank truncates the additional allocation to the low value of $ 512 million dirhams in the year, and the percentage of coverage of loans classified 68%, while collective provisions represent 1.4% of total assets weighted for credit risk.