Commercial Bank of Dubai reported that it achieved a net profit of 315 million dirhams for the first three months of 2020, down by 7.3% compared to the same period in the previous year.
The bank confirmed, in a statement yesterday, that these results were negatively affected by low interest rates, weak business, specific credit events and the expected impacts related to the Corona virus disease pandemic. Provisions for cut losses amounted to 240 million dirhams for the first quarter of 2020.
Operating income decreased by 2.3% for the first three months of this year, to reach 757 million dirhams, and this decrease came as a result of a decrease in net interest income by 1.7%.
Total assets reached 89.9 billion dirhams on March 31, 2020, up 2.1%, compared to 88.1 billion dirhams on December 31, 2019.
Net loans and advances, amounting to 62.3 billion dirhams, increased by 3.6%, compared to 60.2 billion dirhams on December 31.
Customer deposits increased by 0.9%, to reach 63.9 billion dirhams on March 31, compared to 63.3 billion dirhams, on December 31.
The rated loan ratio increased to 6.59%, compared to 5.94% on December 31, 2019.
The bank has increased expected credit losses, mainly related to the potential impacts of Coronavirus, and other specific credit events. As a result, provisions for a decrease in net additional value of 240 million dirhams were deducted during the first three months of 2020.
“The prevailing conditions present a challenge for all people around the world, including the United Arab Emirates,” said the bank’s CEO, Dr. Bernards Van Linder. Nevertheless, we were able to increase our market share in the first quarter of 2020, in line with the strategies laid down. ”
Net loans and advances rose 3.6% to 62.3 billion dirhams.