Commercial Bank of Dubai PSC
Group condensed consolidated interim financial statements
For the three-month period ended 31 March 2024
Commercial Bank of Dubai PSC
Group condensed consolidated interim financial statements
For the three-month period ended 31 March 2024
Contents | Page |
Independent auditor's report on review of the Group condensed consolidated interim | 1 |
financial statements | |
Group condensed consolidated interim statement of financial position | 2 |
Group condensed consolidated interim statement of profit or loss | 3 |
Group condensed consolidated interim statement of profit or loss and other | 4 |
comprehensive income | |
Group condensed consolidated interim statement of changes in equity | 5 |
Group condensed consolidated interim statement of cash flows | 6 |
Notes to the Group condensed consolidated interim financial statements | 7 - 37 |
Deloitte & Touche (M.E.)
Building 2, Level 3
Emaar Square
Downtown Dubai
P.O. Box 4254
Dubai
United Arab Emirates
Tel: +971 (0) 4 376 8888
Fax:+971 (0) 4 376 8899
www.deloitte.com
REPORT ON REVIEW OF INTERIM FINANCIAL INFORMATION
The Board of Directors
Commercial Bank of Dubai PSC
Dubai
United Arab Emirates
Introduction
We have reviewed the accompanying interim condensed consolidated statement of financial position of Commercial Bank of Dubai PSC (the "Bank") and its subsidiaries (together referred to as the "Group") as at 31 March 2024 and the interim condensed consolidated income statement, and the related statements of comprehensive income, changes in equity and cash flows for the three months period then ended, and material accounting policy information and other explanatory notes. Management is responsible for the preparation and presentation of this interim financial information in accordance with International Accounting Standard 34 Interim Financial Reporting ("IAS 34"). Our responsibility is to express a conclusion on this interim financial information based on our review.
Scope of review
We conducted our review in accordance with International Standard on Review Engagements 2410, "Review of Interim Financial Information Performed by the Independent Auditor of the Entity". A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.
Conclusion
Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim financial information is not prepared, in all material respects, in accordance with IAS 34.
Other matter
The financial statements of the Group for the year ended 31 December 2023 were audited by another auditor who expressed an unmodified opinion on those statements on 31 January 2024. The interim financial information for the period ended 31 March 2023 was reviewed by another auditor who expressed an unmodified conclusion on that information on 3 May 2023.
Deloitte & Touche (M.E.)
Musa Ramahi
Registration No.: 872
24 April 2024
Dubai
United Arab Emirates
Akbar Ahmad (1141), Cynthia Corby (995), Faeza Sohawon (5508), Firas Anabtawi (5482), Georges Najem (809), Jazala Hamad (1267), Mohammad Jallad (1164), Mohammad Khamees Al Tah (717), Musa Ramahi (872), Mutasem M. Dajani (726), Nurani Subramanian Sundar (5540), Obada Alkowatly (1056), Rama Padmanabha Acharya (701) and Samir Madbak (386) are registered practicing auditors with the UAE Ministry of Economy.
Commercial Bank of Dubai PSC
Group condensed consolidated interim statement of profit or loss
For the three-month period ended 31 March 2024 (unaudited)
31 March | 31 March | |||
2024 | 2023 | |||
Notes | AED'000 | AED'000 | ||
(Unaudited) | (Unaudited) | |||
Interest income | 1,619,067 | 1,306,924 | ||
Interest expense | (730,342) | (518,692) | ||
Net interest income | 888,725 | 788,232 | ||
Income from Islamic financing | 220,728 | 176,614 | ||
Distribution on Islamic deposits | (150,133) | (76,154) | ||
Net income from Islamic financing | 70,595 | 100,460 | ||
Total net interest income and net income from Islamic financing | 959,320 | 888,692 | ||
Fees and commission income | 354,146 | 318,983 | ||
Fees and commission expense | (77,125) | (104,057) | ||
Net fees and commission income | 277,021 | 214,926 | ||
Other operating income | 16 | 135,901 | 133,775 | |
Total operating income | 1,372,242 | 1,237,393 | ||
Operating expenses | 17 | (315,098) | (289,319) | |
Operating Profit before impairment | 1,057,144 | 948,074 | ||
Net impairment loss | 18 | (287,048) | (372,851) | |
Net profit for the period before income tax expense | 770,096 | 575,223 | ||
Income tax expense | (69,112) | - | ||
Net profit for the period | 700,984 | 575,223 | ||
Basic and diluted earnings per share | 19 | AED 0.23 | AED 0.19 |
The attached notes from 1 to 26 form part of the Group condensed consolidated interim financial statements.
The independent auditor's report on review of the Group condensed consolidated interim financial statements is set out on page 1.
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Commercial Bank of Dubai PSC
Group condensed consolidated interim statement of profit or loss and other comprehensive income For the three-monthperiod ended 31 March 2024 (unaudited)
Net profit for the period
Items that will not be reclassified to profit or loss:
Realised loss on sale of equity investments held at fair value through other comprehensive income
31 March
2024
AED'000
(Unaudited)
700,984
(5,176)
31 March
2023
AED'000
(Unaudited)
575,223
-
Net change in fair value of equity investments (or instruments) at FVOCI | 6,513 | |
Tax related | (121) | |
Items that may be subsequently reclassified to profit or loss: | ||
Changes in fair value reserve of property | - | |
Changes in fair value reserve of an associate | 826 | |
Net amount transferred (or reclassified) to profit or loss on debt | (951) | |
investments (or instruments) at FVOCI | ||
Net change in fair value of debt investments (or instruments) at FVOCI | 2,317 | |
2,192 | ||
Other comprehensive income for the period, net of tax | 3,408 | |
Total comprehensive income for the period | 704,392 | |
(9,287)
-
(6,574)
722
-
71,413
65,561
56,274
631,497
The attached notes from 1 to 26 form part of the Group condensed consolidated interim financial statements.
The independent auditor's report on review of the Group condensed consolidated interim financial statements is set out on page 1.
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Commercial Bank of Dubai PSC
Group condensed consolidated interim statement of changes in equity
For the three-month period ended 31 March 2024 (unaudited)
Legal and | ||||||||
Share capital | Tier 1 | statutory | General | Capital | Fair value | Retained | ||
capital notes | reserve | reserve | reserve | reserve | earnings | Total | ||
AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | AED'000 | |
Balance as at 1 January 2024 | 2,985,192 | 2,203,800 | 1,492,596 | 1,328,025 | 38,638 | (552,325) | 8,285,431 | 15,781,357 |
Net profit for the period | - | - | - | - | - | - | 700,984 | 700,984 |
Other comprehensive income for the period, net of tax | - | - | - | - | - | 8,584 | (5,176) | 3,408 |
Transactions with shareholders, recorded directly in equity | ||||||||
Cash dividend for 2023 (44.38%) [Note 15.1] | - | - | - | - | - | - | (1,324,828) | (1,324,828) |
Directors' remuneration for 2023 | - | - | - | - | - | - | (23,000) | (23,000) |
Balance as at 31 March 2024 (unaudited) | 2,985,192 | 2,203,800 | 1,492,596 | 1,328,025 | 38,638 | (543,741) | 7,633,411 | 15,137,921 |
Balance as at 1 January 2023 | 2,802,734 | 2,203,800 | 1,401,447 | 1,328,025 | 38,638 | (693,832) | 6,801,434 | 13,882,246 |
Net profit for the period | - | - | - | - | - | - | 575,223 | 575,223 |
Other comprehensive income for the period, net of tax | - | - | - | - | - | 56,274 | - | 56,274 |
Transactions with shareholders, recorded directly in equity | ||||||||
Bonus shares for 2022 (6.51%) | 182,458 | - | - | - | - | - | (182,458) | - |
Cash dividend for 2022 (26.05%) [Note 15.1] | - | - | - | - | - | - | (730,112) | (730,112) |
Directors' remuneration for 2022 | - | - | - | - | - | - | (23,000) | (23,000) |
Balance as at 31 March 2023 (unaudited) | 2,985,192 | 2,203,800 | 1,401,447 | 1,328,025 | 38,638 | (637,558) | 6,441,087 | 13,760,631 |
The attached notes from 1 to 26 form part of the Group condensed consolidated interim financial statements.
The independent auditor's report on review of the Group condensed consolidated interim financial statements is set out on page 1.
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Commercial Bank of Dubai PSC
Group condensed consolidated interim statement of cash flows
For the three-month period ended 31 March 2024 (unaudited)
31 March | 31 March | |||
2024 | 2023 | |||
Notes | AED'000 | AED'000 | ||
(Unaudited) | (Unaudited) | |||
OPERATING ACTIVITIES | ||||
Net profit for the period before income tax expense | 770,096 | 575,223 | ||
Adjustments for non-cash and other items: | ||||
Depreciation and amortisation | 12,328 | 10,818 | ||
Amortisation of (discount) / premium on investments | (100,006) | (40,188) | ||
Amortisation of transaction cost on notes and medium term borrowings | 617 | 239 | ||
Loss / (gain) on foreign exchange translation | 5,792 | (5,202) | ||
Realised gain on sale of investments | (951) | - | ||
Net unrealized gain on derivatives | (12,021) | (8,529) | ||
Impairment allowance on investment securities | 32 | 133 | ||
Other operating income | (1,896) | (78) | ||
Dividend income | (1,754) | (1,754) | ||
Impairment allowance on loans and advances and Islamic financing | 309,193 | 325,225 | ||
Impairment allowance on due from banks | 133 | 145 | ||
Impairment allowance on other assets | 211 | 78,448 | ||
Impairment allowance on financial guarantees and loans commitments | 20,362 | 783 | ||
Loss / (gain) on disposal of property and equipment | 81 | (56) | ||
1,002,217 | 935,207 | |||
Tax paid | (191) | - | ||
Increase in negotiable Central Bank U.A.E. certificate of deposits with | - | (900,000) | ||
original maturity of more than three months | ||||
Increase in due from banks with original maturity of more than three | (473,4 80) | (456,120) | ||
months | ||||
Increase in loans and advances and Islamic financing | (3,787,344) | (2,240,247) | ||
(Increase) / decrease in other assets | (241,370) | 73,776 | ||
Increase / (decrease) in due to banks | 939,608 | (755,369) | ||
Increase in customer deposits and Islamic customer deposits | 2,054,623 | 5,118,485 | ||
Increase in other liabilities | 551,669 | 320,459 | ||
Directors' remuneration paid | (23,000) | (23,000) | ||
Net cash flow generated from operating activities | 22,732 | 2,073,191 | ||
INVESTING ACTIVITIES | ||||
Purchase of investments | (4,000,512) | (5,363,117) | ||
Purchase of property and equipment | (31,287) | (21,844) | ||
Dividend income received | 1,754 | 1,754 | ||
Proceeds from sale and matured investments | 2,318,703 | 728,468 | ||
Proceeds from sale of property and equipment | - | 56 | ||
Net cash flow used in investing activities | (1,711,342) | (4,654,683) | ||
FINANCING ACTIVITIES | ||||
Repayment of notes and medium-term borrowings | (624,410) | - | ||
Dividend paid | (1,324,828) | (730,112) | ||
Net cash flow used in financing activities | (1,949,238) | (730,112) | ||
Net decrease in cash and cash equivalents | (3,637,848) | (3,311,604) | ||
Cash and cash equivalents at 1 January | 15,416,916 | 17,991,801 | ||
Cash and cash equivalents at end of the period | 20 | 11,779,068 | 14,680,197 |
The attached notes from 1 to 26 form part of the Group condensed consolidated interim financial statements.
The independent auditor's report on review of the Group condensed consolidated interim financial statements is set out on page 1.
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Commercial Bank of Dubai PSC
Notes to the Group condensed consolidated interim financial statements
For the three-month period ended 31 March 2024 (unaudited)
1. LEGAL STATUS AND ACTIVITIES
Commercial Bank of Dubai PSC ("the Bank") was incorporated in Dubai, United Arab Emirates (U.A.E.) in 1969 and is registered as a Public Joint Stock Company (PJSC) in accordance with Federal Law No. 32 of 2021. The Bank is listed on the Dubai Financial Market. The Bank's principal activity is commercial and retail banking. The registered address of the Bank is CBD Head Office, Al Ittihad Street, P. O. Box 2668, Dubai, United Arab Emirates.
The condensed consolidated interim financial statements of the Group for the three-month period ended 31 March 2024 comprise the results of the Bank, its wholly owned subsidiaries (together referred to as
"the Group") and the Group's interest in an associate. No income of a seasonal nature was recorded in the condensed consolidated interim financial information for the three-month periods ended 31 March 2024 and 2023, respectively. Details about subsidiaries, special purpose entities and an associate:
Ownership | ||||||||
Interest | County of | |||||||
Name of Subsidiary | 31 | 31 | Principle activities | |||||
Incorporation | ||||||||
March | December | |||||||
2024 | 2023 | |||||||
Subsidiary | ||||||||
CBD Financial Services | 100% | 100% | UAE | Providing | brokerage facilities | for | ||
LLC | local shares and bonds. | |||||||
CBD Employment | 100% | 100% | UAE | Supply of manpower services. | ||||
Services One Person | ||||||||
Company LLC | ||||||||
Attijari Properties LLC | 100% | 100% | UAE | Self-owned property management | ||||
services as well as buying and | ||||||||
selling of real estate. | ||||||||
Noor Almethaq Real | 100% | 100% | UAE | Development of real estate. | ||||
Estate Development LLC | ||||||||
Special Purpose Entity | ||||||||
CBD (Cayman) Limited | 100% | 100% | Cayman | Issuance of debt securities. | ||||
Islands | ||||||||
CBD (Cayman II) | 100% | 100% | Cayman | Transact and negotiate derivative | ||||
Limited | Islands | agreements. | ||||||
VS 1897 (Cayman) | 100% | 100% | Cayman | Manage investment acquired in the | ||||
Limited | Islands | settlement of debt. | ||||||
CBD Digital Lab Limited | 100% | 100% | UAE | Technology | research | and | ||
[Subsidiary of VS 1897 | development. | |||||||
(Cayman) Limited] | ||||||||
Hortin Holding Limited | 100% | 100% | British Virgin | Manage | real | estate | related | |
[Subsidiary of VS 1897 | Islands | investment | acquired | in | the | |||
(Cayman) Limited] | settlement of debt. | |||||||
Lodge Hill Limited | 100% | 100% | British Virgin | Manage | real | estate | related | |
[Subsidiary of VS 1897 | Islands | investment | acquired | in | the | |||
(Cayman) Limited] | settlement of debt. | |||||||
Westdene Investment | 100% | 100% | British Virgin | Manage | real | estate | related | |
Limited | Islands | investment | acquired | in | the | |||
[Subsidiary of VS 1897 | settlement of debt. | |||||||
(Cayman) Limited] | ||||||||
Associate | ||||||||
National General | 17.8% | 17.8% | UAE | Life and general insurance business | ||||
Insurance Co. (PJSC) | as well as certain reinsurance | |||||||
business. | ||||||||
7 |
Commercial Bank of Dubai PSC
Notes to the Group condensed consolidated interim financial statements
For the three-month period ended 31 March 2024 (unaudited)
2. BASIS OF PREPARTION
2.1 Statement of compliance
These Group condensed consolidated interim financial statements have been prepared in accordance with IAS 34, Interim Financial reporting. These condensed consolidated interim financial statements do not include all the information required for full annual audited consolidated financial statements and should be read in conjunction with the audited consolidated financial statements of the Group as at and for the year ended 31 December 2023.
The accounting policies adopted in the preparation of these Group condensed consolidated interim financial statements are consistent with those followed in the preparation of these Group audited consolidated financial statements for the year ended 31 December 2023, except for the new and revised International Financial Reporting Standards mentioned in note 5.
A number of new accounting standards and amendments to accounting standards are effective for annual periods beginning after 1 January 2024 and earlier application is permitted. The Group has not early adopted any of the forthcoming new or amended accounting standards in preparing these condensed consolidated interim financial statements.
2.2 Functional and presentation currency
These Group condensed consolidated interim financial statements are presented in United Arab Emirates Dirhams ("AED"), which is the Group's functional and presentation currency, rounded to the nearest thousand unless otherwise stated.
2.3 Basis of consolidation
These Group condensed consolidated interim financial statements comprise the financial statements of the Bank, its wholly owned subsidiaries (together referred to as "the Group"), which it controls and the Group's interest in an associate, as at 31 March 2024. Control is achieved when the Group is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
3. MATERIAL ACCOUNTING POLICIES
3.1 Financial Assets
3.1.1 Classification
The Group classifies financial assets on initial recognition in the following categories:
- Amortised cost;
- Fair value through other comprehensive income (FVOCI); and
- Fair value through profit or loss (FVPL).
Business model assessment
The Group makes an assessment of the objective of a business model in which a financial asset is held at portfolio level, because this reflects the way the business is managed and information is provided to the management. The assessment is not determined by a single factor or activity. Instead, the entity considers all relevant information available at the date of the assessment. The information considered includes:
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Commercial Bank of Dubai PSC published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 12:45:02 UTC.