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Mon 25 Jan 2010 05:18 PM

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Commercial Bank of Dubai posts 2009 earnings rise

Lender says full-year earnings up 4%, operating profit rises 3.6% to AED1.2bn.

Commercial Bank of Dubai posts 2009 earnings rise

Commercial Bank of Dubai, a UAE-based lender, said on Monday that full-year earnings rose 4 percent as interest income increased.

Net income rose to AED803 million ($219 million) from AED771 million a year earlier, the Dubai-based bank said today in an e-mailed statement. Net interest income increased 15 percent to AED1.32 billion.

Commercial Bank of Dubai was among four banks in the UAE whose ratings were placed on review by Moody’s Investors Service after Dubai World, a state-run holding company, said Nov. 25 it would seek to delay payment on some debts.

Moody’s said Dec. 15 it needed to “assess the resilience of these banks’ ratings to the potential continued deterioration in Dubai’s operating environment.”

Commercial Bank of Dubai said today that operating profit before provisions rose 3.6 percent to AED1.2 billion in 2009.

Loans and advances fell 0.7 percent to AED28.4 billion, with collective provisions equal to 1.25 percent of performing loans, according to the statement.

The UAE’s central bank will soon issue a circular to banks on new provisioning rules, Emirates Business 24/7 reported Jan. 18.

The new rules will require banks to set aside general provisions equal to between 1.25 percent and 2 percent of loans, according to the newspaper.

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