Dubai – Mubasher: The Commercial Bank of Dubai (CBD) has reported a rise in its annual profits by 16% year-on-year to AED 1.162 billion in 2018, citing a 3.1% increase in revenues to AED 2.73 billion and 4.7% lower operating expenses to AED 858 million on the back of better expense management and improved efficiency supported by digital transformation.

Net impairment allowances fell 4.8% to AED 704 million in 2018, while disciplined expense management delivered an improved cost to income ratio of 31.5% last year versus 34.1% in 2017, CBD said in a statement to the Dubai Financial Market (DFM).

In addition, operating income grew 3.1% to AED 2.725 billion in 2018.

By the end of 2018, CBD’s capital adequacy ratio (CAR) was “robust” at 14.6%, while gross loans grew 7.7% to AED 54.1 billion and advances to stable resources ratio (ASRR) was 89.4%.

Commenting on the results, CBD CEO Dr. Bernd van Linder said that the strong performance has lifted the bank’s returns whilst delivering on its strategic agenda.

“We are investing in digital transformation, recruiting and retaining top talent to further enhance business capabilities and position ourselves as a key player in this evolving environment,” he added.

The ratio of non-performing loans “improved significantly” to 6.2% in 2018 from 8.7%, whereas the coverage ratio remained unchanged at 78%, CBD said late Tuesday.

In terms of assets, CBD’s amounted to AED 74.1 billion as at 31st December 2018, registering a 5.2% rise from AED 70.4 billion as at 31st December 2017.

The CBD previously posted AED 282.29 million in profits in Q3-18, down 15% year-on-year from AED 332.20 million, while for the first nine months of 2018, profits had grown by 26.8% to AED 843.06 million versus AED 664.65 million in the corresponding period of 2017.