CBI today has solid fundamentals, with sustainable growth and strong quality of earnings.
Tuesday, February 14, 2017
Dubai, 14 February 2017: Commercial Bank International (CBI) today announced its FY 2016 financial results.
Financial highlights – twelve-months ended 31 December 2016:
Mohammad Sultan Al Qadi, Chairman of CBI, commented on the Bank’s performance: “2016 demonstrated the success of CBI’s strategy and completes the first full year of our turnaround story. CBI witnessed strong quarter on quarter growth, in-spite of a volatile market environment, strengthened its capital structure and core business and continued to attract new customers. While the year ahead will continue to present some challenges, the Bank is strongly positioned to continue to grow and take advantage of market opportunities as they arise.”
Mark T. Robinson, CEO of CBI, added: “CBI today has solid fundamentals, with sustainable growth and strong quality of earnings. Net profit, net interest income and net fees and commissions increased substantially relative to 2015 as we grew our total number of customers by 13.3%, and increased our customer deposits by over AED 2 billion.”
CBI’s net profit for FY 2016 was AED 125 million with Q4 2016 net profit of AED 24 million. This was driven by an increase in revenues from the customer business, limited expense growth and reduced provisions versus the previous financial year.
Operating income for FY 2016 increased by 2.4% to AED 839 million versus FY 2015 driven by an 8% increase in customer revenue.
Net interest income increased by 3.4% to AED 507 million despite a general increase in the cost of funding across the sector.
Customer deposits increased by 25.6% to AED 13,952 million in 2016 as a result of the Bank’s improved products and services mix, and the debt ratings received earlier in the year.
Retail loan growth for FY 2016 was 17%, and credit card outstanding balances grew by 45% compared to FY 2015.
Net loans and advances for FY 2016 increased by 15.5% to AED 13,291 million in 2016 largely driven by business loans, personal loans and mortgage loans.
Loan to Deposits Ratio for FY 2016 improved to 97.3% versus 103.7% in 2015, reflecting an improved liquidity position.
Net fee and commission income increased by 10.4% to AED 259 million, and Fee and Commission Income (as a percentage of operating income) stood at 30.8% versus 28.6% in FY 2015, as the Bank benefited from the increase in new customers and cross sell.
Operating expenses for FY 2016 remain tightly managed with a slight increase of 2.8% to AED 459 million versus FY2015.
Non-core assets decreased by 24.1% to AED 751 million in 2016 as the Bank continued to deliver on its strategy of divesting non-core businesses.
The Capital Adequacy Ratio at year-end 2016 remained stable at 14.4% compared to 14.8% at year-end 2015.