Commercial Bank of Dubai reported that it recorded a net profit of 530 million dirhams for the first half of 2020, down by 24.3% compared to the same period last year.
The bank indicated, in a statement yesterday, that the operating income, which amounted to 1.41 billion dirhams, decreased by 6.5% compared to the same period last year, mainly due to the decrease in the interest rate.
The net impairment provisions for the carve-out value during the period amounted to 495 million dirhams, an increase of 30.1% as a result of the increase in the provisions for the decrease in the specified value, and the increase in expectations of potential credit losses due to the new circumstances related to the Corona pandemic.
Total loans and advances increased by 4.2% compared to the end of December 31, 2019, to reach AED 66.8 billion.
The rated loan ratio increased by 103 basis points, to 6.97%, compared to 5.94% in December 2019.
Total assets amounted to 93.7 billion dirhams, as of June 30, 2020, up by 19.4% compared to 78.4 billion dirhams as of June 30, 2019.
Customer deposits increased by 18.2% to reach 65.3 billion dirhams at the end of last June, compared to 55.3 billion dirhams on June 30, 2019.
“The bank’s results have decreased for the first six months of 2020, mainly affected by unprecedented market conditions,” said the bank’s CEO, Dr. Bernards Van Linder. Despite the difficulties and challenges in the operational conditions, we have continued to implement our strategy, and the bank is in a good position to keep pace with the improvement in business conditions in the coming periods. ”
He added: “The bank continued to provide banking services without interruption throughout the Corona pandemic period, with a focus on improving digital services for our customers. In line with the recommendations of the Central Bank, we have provided extensive support measures to our customers, including delaying payment of loan payments, reduction, and exemption from fees, through the targeted business sectors support program.
Loans and advances rose 4.2% to 66.8 billion dirhams.