Total loans and advances rose to 66.5 billion dirhams
816 million dirhams, the net profit of «Dubai Trade» during the 9 months
The bank continued to provide banking services without interruption throughout the Corona pandemic.
■ from the source
Bernards Van Linder: "The bank continued to actively take proactive measures to support its customers, employees and the UAE economy during (the pandemic)."
Commercial Bank of Dubai reported net profits of 816 million dirhams in the first nine months of 2020, down by 23.3% compared to the same period last year.
The bank confirmed in a statement yesterday that the Corona pandemic had led to a sharp contraction in business conditions, which led to a historic low in interbank interest rates, and an increase in specific and expected credit losses.
Operating profits reached 1 billion 515 million dirhams, down by 4.7%, and operating income of 2.107 billion dirhams decreased by 6% compared to the same period last year, and this decrease was mainly due to the sharp decline in interest rates.
The net provisions for impairment of withholding value during the period amounted to 699 million dirhams, up by 32.9%, as a result of the higher provisions for impairment specified, and the high potential credit losses associated with the Corona pandemic.
Total loans and advances increased by 3.8% compared to the end of December 31, 2019, to reach 66.5 billion dirhams.
Total assets amounted to 92.8 billion dirhams, as on 30 September 2020, up by 12.4%, compared to 82.5 billion dirhams as on 30 September 2019.
Customer deposits increased by 8.4% to reach 64 billion dirhams, as on September 30, 2020. In line with International Accounting Standard No. 9 for financial reporting, the bank raised credit losses associated with many specific credit events, and the potential effects of the Corona virus, and as a result. Therefore, provisions for impairment of a net additional value of 699 million dirhams were deducted during the first nine months of 2020.
The bank’s chief executive, Dr. Bernards Van Linder, said: “The bank has achieved a remarkable improvement in terms of performance in the third quarter, compared to the second quarter of this year, despite the difficult market conditions, and despite the overall decline in performance in the first nine months of the year. 2020 compared to the same period in 2019, the bank continued to implement its strategy and will end the year with distinguished results.
The net profit of 816 million dirhams decreased by 23.3% compared to the same period of the previous year, on the back of lower interest rates, challenging business conditions and higher provisions for impairment losses determined and expected.
He added, "We have effectively continued to take proactive measures to support our customers, employees and the UAE economy during this pandemic, and the bank has continued to provide banking services without interruption throughout the period of the Coronavirus pandemic."
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