UAE-based Commercial Bank International (CBI) reported a net profit of Dh66.1 million  ($17.9 million) for the first quarter, up 108 per cent when compared to Dh31.8 million during the same period last year.

Announcing the results, CBI said its assets in the first quarter grew by Dh451 million to reach Dh11.9 billion compared to the previous quarter. The total customer deposits increased by 6.4 per cent to Dh9 billion, while net loans and advances to customers increased by 3.25 per cent to Dh8.1 billion, it added.

Commenting on the results, Kris Babicci, the bank chief executive officer said, "We have seen improved performance and volume growth over last year and the results are in line with our plan for the year. We expect the trend to continue."

"We are optimistic in our outlook and are working to enhance our value propositions and service offerings to our customers.  Our focus remains on the management of risk and a rigorous approach to cost management," he noted.

The bank’s strategy, he said, focused on the growth of its core banking activities while maintaining a strong liquidity position to take advantage of quality lending opportunities.

"The liquidity was managed well and the bank’s key regulatory ratios are in accordance with Central Bank of the U.A.E. requirements,” Babicci added.

In the past year, CBI strengthened its balance sheet with strong capital adequacy, high liquidity and low advances to deposits ratio, said the statement from the bank.

CBI’s capital adequacy ratio remained strong at 16.7 per cent and maintained a comfortable liquidity position of Dh1.3 billion at the end of March 31, 2012. The advances to stable resources ratio was maintained at 0.88:1 as to the Central Bank of the UAE requirement of 1:1.
 
Commenting on the performance, chairman Mohammad Sultan Al Qadi said: “The board has great confidence in the management team and in less than a year, the strategy has started to show impressive results. The earnings per share increased 104.4 per cent to Dh0.047 this quarter compared to last year. We anticipate that this growth will continue at the same rate until at least the end of 2012.”

In the first quarter, CBI launched a new home loan product to its retail customers and rearranged its savings account awards program ‘Mabrook’ by dedicating Dh1.5 million to be won during 2012.-TradeArabia News Service