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Sunday, 23 July 2017

Spike in NPLs continue to challenge bank profits | GulfNews.com

Spike in NPLs continue to challenge bank profits | GulfNews.com:

"Significantly higher provision costs in the first six months of 2017 has impacted profit growth of a few leading banks. Broad trend indicates that despite proactive efforts, a creeping increase in non-performing loans continue to adversely impact asset quality and profitability of some banks. Commercial Bank of Dubai’s (CBD) first half profits were lower by 31.6 per cent at Dh332.5 million for the first half of 2017 compared to Dh485.8 million for the same period last year mainly due to higher provisions and costs. Net impairment provisions of Dh531.5 million were set aside during the first half compared to Dh288.7 million for the same period previous year. Operating expenses were 7 per cent higher at Dh449.3 million for the first half of 2017 compared to Dh420.1 million for the same period last year. Total assets were higher at Dh67.9 billion as at June 30, 2017, an increase of 10.6 per cent over the Dh61.4 billion reported in the first half of 2016. CBD’s loans and advances increased 14.1 per cent year on year to Dh46.3 billion in the first half of this year and was up 10.4 per cent compared to Dh42 billion at year-end 2016."



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