• CBI Reports AED 36.5 Million net Profit Q1 in 2016. • CBI achieves first rating from Fitch: ‘A-’; Outlook Stable Read More...

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• CBI Reports AED 36.5 Million net Profit Q1 in 2016. • CBI achieves first rating from Fitch: 'A-'; Outlook Stable
Thursday, April 28, 2016

• Net loan and deposit growth outperforms the market • 'A-' Long-term Issuer Default Rating (IDR) from Fitch Ratings

Commercial Bank International (CBI or 'The Bank') announces its financial results for three months ending 31st March 2016.

CBI announces 'A-' Long-term Issuer Default Rating (IDR) from Fitch Ratings.

Q1 2016 Financial Highlights: Net profit AED 36.5 million Net loans and advances increased by AED 703 million (6%) to AED 12,209 million Customer deposits up 6% to AED 11,782 million Non-Performing Loan ratio down to 5.9% Capital Adequacy Ratio stable at 14.5% Coverage ratio increased to 89.2%

Rating Highlights: Achieves first investment grade rating 'A-' Long-term Issuer Default Rating (IDR) from Fitch Ratings Viability Rating (VR) of B+ Stable outlook on the long-term IDR CBI a key affiliate of QNB One of 10 UAE banks with Fitch rating above BBB+

In Q1 2016 CBI reported a net profit of AED 36.5 million supported by growth in Wholesale Bank lending and customer deposits.

Net Loans and Advances increased by AED 703 million, or 6% to AED 12,209 versus AED 11,506 million in December 2015, well above reported market growth of 1.3%. Earning Loans and Advances increased by AED 793 million from year end 2015.

Significant balance sheet restructuring and provisioning in 2015 led to a reported loss for FY 2015. In Q1 2016, the Bank reported continued improvements in asset quality with non-performing loans dropping by 12% to AED 869 million from AED 983 million in December 2015. As a result, CBI reported an improved Non-Performing Loan ratio of 5.9% from 7.0% down 115 bps from December 2015 and an NPL coverage ratio of 89.2% up 7.8% from 81.4% at year-end 2015. Capital Adequacy remained stable at 14.5%, versus 14.8% in December 2015, and above the minimum required. Liquidity continues to be in excess of the regulatory requirements.

Customer deposits increased by 6% to AED 11,782 million from AED 11,106 million in December 2015, significantly ahead of the market which was flat for the period. Revenue for the quarter was AED 186.7 million, slightly down from Q1 2015 mainly due to the one off revenues from the sales of non-core assets in Q1 2015.

CBI's expenses of AED 105.4 are 3.5% above Q1 2015. Net specific provisions of AED 30.9 million were AED 23.0 million less than Q1 2015 wherein general provisions of AED 14 million were AED 25.4 million less than Q1 2015.

Mohammad Sultan Al Qadi, Chairman of CBI commented on the Bank's performance: 'This is a very positive start to the year for CBI, and a pivotal moment for the Bank. The Fitch rating is an endorsement of the strategy and our relationship with QNB and puts CBI in a strong position at the start of a challenging year, and well placed to create sustainable returns for shareholders.'

Mark T. Robinson, CEO of CBI commented: 'CBI is a bank focussed on growth. We have the speed and agility of a small bank, with the stability and security of a big bank. The rating from Fitch comes at an important time for CBI because it accelerates our growth strategy in several ways, including providing access to a bigger pool of potential investors and a reduced cost of funds.'

The Bank's return to profitability is underpinned by a long-term Issuer Default Rating of 'A-' and a Viability Rating of B+ from Fitch Ratings. The high investment grade rating is supported by the strengthening of CBI's balance sheet through the sale of non-core assets, reduction of NPLs and issuance of Alternative Tier 1 capital in Q4, 2015.

The rating also reflects Fitch's view that CBI is a 'key affiliate of QNB (AA-/Stable/F1+)' due to the role it plays as QNBs vehicle for its UAE lending, an important market for QNB. As the second largest bank in Africa and the Middle East in terms of assets, QNB has the ability to support CBI's growth strategy as the Bank seeks to raise more capital and invest in products, people and technology.

For further information, please contact:

Marketing, Branding & Corporate Communications

Mohamed Al Tajer
Head of Marketing, Branding & Corporate Communications
[phone]
Email: [e-mail]

Will Anderson
Director
Brunswick Gulf Ltd
[phone]
Email: [e-mail]

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