Dubai's CBD posts 4% rise in 2012 net profit

Commercial Bank of Dubai (CBD) has announced a net profit of AED853m ($232.2m) for 2012, up four percent compared to AED822m in the previous year.

The bank, 20 percent owned by the Government of Dubai, said in a statement that it was its fourth successive increase in net profit since 2008.

It added that total capital resources stood at AED6.8bn as at December 31 last year, with its capital adequacy ratio increasing to 23.2 percent against the regulatory requirement of 12 percent.

Operating income for the year of AED1.852bn was marginally lower than 2011 due to a small decrease in net interest income, it added.

Non-interest income was virtually unchanged at AED520m with increases in foreign exchange income (up 11 percent), investment income (up 28 percent) compensating for a seven percent drop in fees and commission.

Operating expenses for the full year increased slightly to AED572m, CBD said.

The bank also said it booked an incremental impairment charge for the year of AED490m while total assets of AED39.5bn were posted compared to AED38.3bn for the year earlier period.

Peter Baltussen, CEO said: "CBD has maintained its steady performance whilst positioning itself to capitalise on future opportunities.

"Our robust capital base allows us the flexibility to pursue new strategic initiatives which will enable us to better serve our customers whilst providing our shareholders with consistent solid returns."