Commercial Bank of Dubai - Annual General Meeting
Dubai, 21 February 2019: Commercial Bank of Dubai, one of the leading banks in the UAE, announced that its board of directors approved the distribution of 20.7% of the bank’s capital as cash dividends, during the Annual General Assembly held at the bank’s headquarters in Dubai on 20th Feb, 2019.
During the Annual General Assembly, a review of the year ended 31 December 2018 was presented and the Board of Directors approved the bank’s strategic plan, the External Auditor’s report, as well as the bank’s Balance Sheet and Income Statement. The Board also approved the update of the bank’s USD 3 Billion Euro Medium Term Note Programme.
H.E. Humaid Mohammad Al Qutami, Chairman of the Board said: “With rising oil production and government spending as well as the continued reforms to promote the private sector, the UAE economy is projected to strengthen and register 3.5% GDP growth in 2019. The UAE is also forecast to achieve an average real GDP growth rate of 3.8% between 2019 and 2023, supported by an increase in investment flows and private consumption. Inflation is projected at 3.5% in 2018 owing to the introduction of the value-added tax and should ease afterwards.”
He added: “Despite the economic challenges encountered, the bank was able to outperform as a result of the substantial effort exerted in all our activities and the strategic decisions adopted by the bank's management. CBD posted a strong set of results for 2018 and net profit increased to AED 1.16 billion, representing 16% growth year on year, as total revenues reached over AED 2.7 billion. In addition, the bank achieved a 5% increase in net interest income to AED 1.91 billion and a 7.2% increase in Operating Profit. Operating expenses were AED 858 million, down by 4.7%, attributable to ongoing expense management and improved efficiency supported by digital transformation. The operating performance was also supported by higher non-interest income, lower expenses and an improved cost of risk.
He concluded by saying: “We expect 2019 to be another challenging year for financial service providers. However, we are confident that our prudent business model shall continue to deliver a solid performance and deal with the opportunities and challenges that will present themselves.”
During the year, CBD continued its efforts to deliver on its strategy that is designed to promote and encourage the delivery of long-term benefits which enhance growth and revenue returns. In order to improve profitability in the challenging environment, CBD has continued to make efforts to control costs across all divisions of the bank and has increasingly focused on productivity and innovation. The bank also signed an innovation program agreement with PWC that will foster and promote innovation and help the bank provide an exceptional customer experience. CBD plans to drive innovation and leverage cutting-edge technologies to deliver a world class customer experience across all segments including personal, corporate and commercial businesses.