Commercial Bank of Dubai posts 1.4% profit drop in Q3

UAE lender Commercial Bank of Dubai posted a marginal drop in third-quarter net profit of 1.4 percent, the bank said on Sunday. CBD, which is 20 percent owned by the Dubai government, made a net profit of AED254m ($69.2m) in the three-month period to September 30, according to Reuters calculations based on a statement to the Dubai Financial Market. This was down slightly from AED257.6m in the corresponding period in 2010. However, net profit over the first nine months of the year was up slightly at AED777m, the statement said, compared to the AED771m it posted this time last year. Impairments stood at AED227m for the first nine months of the year, the statement added. "The bank has continued to achieve positive results and was able to maintain the high level of profitability and returns, which is shown through the high return rates on assets and property rights," Peter Baltussen, chief executive officer of CBD, said. "Our continued and effective management of liquidity and capital has enabled us to strengthen our balance sheet and focus on the growth of our portfolio." CBD signed a $450m three-year loan facility provided by nine banks at the beginning of August. CBD is rated A3 by Moody's and A- by Fitch.