DUBAI, Commercial Bank of Dubai announced that its board of directors approved the distribution of 20.7 percent of the bank's capital as cash dividends, during the Annual General Assembly held at the bank's headquarters in Dubai on 20th February, 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.

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 percent GDP growth in 2019. The UAE is also forecast to achieve an average real GDP growth rate of 3.8 percent between 2019 and 2023, supported by an increase in investment flows and private consumption. Inflation is projected at 3.5 percent 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 percent growth year on year, as total revenues reached over AED 2.7 billion. In addition, the bank achieved a 5 percent increase in net interest income to AED 1.91 billion and a 7.2 percent increase in Operating Profit. Operating expenses were AED 858 million, down by 4.7 percent, 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."

Source: Emirates News Agency