Commercial Bank of Dubai's (CBD) net profit for year ending 31 December 2013 increased by 18 per cent to AED 1,010 million as compared to AED 857 million for the previous year, maintaining the bank's record of annual growth in its net profit over the last five years right through the economic downturn. Key Financial Highlights: Operating profit for the year ended 2013 increased by 9.3 per cent to AED 1,405 million as compared to AED 1,286 million for the previous year. Net profit for Q4 2013 of AED 258.7 million 126 per cent higher than Q4 2012. Loans and advances at AED 30.3 billion, 11.3 per cent higher than the AED 27.2 billion as at 31 December 2012 . Customers' deposits at AED 30.9 billion were 10.3 per cent higher compared to AED 28.1 billion at the end of 2012. Capital adequacy ratio continues to be robust at 19 per cent. Return on average equity was 15.1 per cent whilst return on average assets was 2.4 per cent Cost to income ratio at a healthy 30.9 per cent. Cash dividend of 30 per cent and bonus shares of 10 per cent has been proposed for 2013. The record net profit was achieved on the back of a 9.4 per cent growth in operating income which reached an all-time high of AED 2.03 billion. Net interest income increased by 8.7 per cent to AED 1.45 billion in 2013 from AED 1.33 billion in 2012, while non-interest income increased by 11.1 per cent from AED 525.7 million in 2012 to AED 584.2 million for the year ended 31 December 2013 . Operating expenses increased by 9.7 per cent from AED 572.2 million for the year ended 31 December 2012 to AED 627.6 million for the full year ended 2013 as the bank made substantial investments in its resources and infrastructure. As a result operating profit increased by 9.3 per cent from AED 1,286 million to AED 1,405 million for the full year ended 31 December 2013 . Efficiency ratio increased slightly from 30.8 per cent for 2012 to 30.9 for the full year ended 31 December 2013 , lower than local industry average. Total assets as at 31 December 2013 stood at AED 44.5 billion, a 13.2 per cent increase over the AED 39.3 billion as at 31 December 2012 . Loans and advances increased by 11.3 per cent from AED 27.2 billion as at 31 December 2012 to AED 30.3 billion as at 31 December 2013 . CBD continued to grow its corporate banking business where gross lending increased by 9.7 per cent from AED 26.9 billion as at end of December 2012 to AED 29.5 billion as at 31December 2013. However the Bank's increased focus on its personal banking offering resulted in a 35 per cent increase in gross personal loans from AED 2.4 billion as at 31 December 2012 to AED 3.3 billion as at 31 December 2013 . Customers' deposits as at 31 December 2013 stood at AED 30.9 billion, up by 10.3 per cent over the AED 28.1 billion as at end of 2012. CBD's liquidity position was comfortable with its advances to stable resources ratio at 80.9 per cent as at 31 December 2013 against 81.8 per cent as at 31 December 2012 compared to the regulatory maximum ratio of 100 per cent. The liquidity coverage ratio as calculated per Basle-III guidelines was 116 per cent as at 31 December 2013 whilst the minimum stipulated ratio is 50 per cent. During the year, the bank repaid AED 1.8 billion of its deposits received from the UAE Ministry of Finance ahead of its contractual maturity on 31 December 2016 . Subsequently CBD successfully issued $500 million of conventional bonds as part of its Euro Medium Term Note programme. The bank also prepaid its $450 million club deal in October 2013 with a remaining maturity of 1 year and replaced it with a club deal of similar amount in December 2013 with a 3 year maturity. The bank is strongly capitalised with total capital resources of AED 7.2 billion as at 31 December 2013 . The capital adequacy ratio as per BASEL II was robust at 19 per cent as at 31 December 2013 against regulatory requirement of 12 per cent, while TIER 1 ratio was at 17.7 per cent as at 31 December 2013 (Dec-12: 17.72 per cent). CBD's leverage ratio calculated as per Basel-III guidelines was 13.3 per cent as at 31 December 2013 compared with the minimum stipulated three per cent ratio. Return on average assets for the year ended 31 December 2013 improved to 2.4 per cent from 2.2 per cent for the year ended 2012, which is substantially higher than its peer group average. Return on average equity increased to 15.1 per cent for the year ended 31 December 2013 when compared to 13.4 per cent for the year ended 31 December 2012 . The full year impairment charge for loan portfolio was AED 419 million, including AED 33 million for General Provisions, which represents 1.5 per cent of the Bank's credit risk weighted assets (CRWA) by end of 2013. The Non-Performing Loan (NPL) Ratio improved from 11.2 per cent as at end of December 2012 to 10.1 per cent as at end of December 2013 and the NPL coverage ratio improved to 84.9 per cent (2012: 71.7 per cent). The Board has proposed a cash dividend of 30 per cent and bonus shares of 10 per cent, subject to the agreement of the shareholders at the Annual General Assembly Meeting to be held on 5 March 2014 . Peter Baltussen , Chief Executive Officer said, "Our 2013 record net profit was a result of a strong performance across all our business lines. Our Personal Banking strategy with renewed focus on the affluent segment has enabled us to diversify our bottom line and increase our market share. At the same time we continue to stay close to our corporate and commercial clients particularly the family owned businesses to ensure that we are their preferred banking partner in the coming years. I believe CBD with its comfortable liquidity and robust capital adequacy is in a strong position to grow along with its clients."
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