Commercial Bank of Dubai (CBD) has announced record results for the year 2006, enabling it to propose a generous cash dividend of 45 per cent to its shareholders.

The bank said its results displayed solid performance across all areas of its operations, and it appears that trade finance services, including letters of credit (L/Cs), have made a significant contribution to CBD's results.

Shareholder benefits

The bank's net profits increased by 9.2 per cent reaching 601 million UAE dirhams (AED601 million) in 2006 compared to AED550 million in 2005. The bank's total assets increased by 22 per cent to AED18.7 billion in 2006.

Shareholder return measures improved too. Return on equity for 2006 reached 18.1 per cent while earnings per share climbed to AED0.63 per share.

Performance indicators

The financial results show a substantial increase across the bank's operations, including rises of 29.3 per cent in deposits and 35 per cent in loans and advances.

But it was L/Cs and guarantees that provided the most spectacular headline in CBD's 2006 results by showing an increase to AED6,793 million, up a massive 41 per cent on the previous year.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.