Message from the CEO Dear Colleagues, I hope that the summer and the holy month of Ramadan has been a fruitful one for everyone. I would like to welcome back those who come been back from their vacation, and to those who will be going on their vacation for the remainder of the summer, we have some tips in the newsletter for you. The remarkable outcome of the first half reflects the strength and capability of the Bank to continue a steady growth. This is the result of your teamwork and diligent execution of the business strategy given to the Bank’s management by our Board of Directors. Your dedication towards that vision has helped us grow and expand while increasing the trust and satisfaction level of our banking clients, and for this we thank you. As you know, Commercial Bank of Dubai has recently published its first half year financials, with the Bank’s net profit for the second quarter is AED581 million, which showed an increase of 17 percent compared to the same period last year. In addition to the milestone represented by the highest first half yearly profit ever, the Bank has garnered other achievements. Winning the Dubai Human Development Award 2013 is one of the milestone in the successful journey of CBD. Such an honor indicates that we are on the right track in becoming the employer of choice. I am happy to share that we are also setting new benchmarks in cyberspace. After launching CBD’s new online banking website and virtual assistant Sara, we have answered over 56,000 questions and have had more than 22,000 interactions with EDITORIAL TEAM CBD customers. The new next-gen CBD website – which could be accessed through desktops, laptops, and smartphones – has brought us even closer to our retail, Badr Soueidan corporate and commercial clients, particularly the family-owned businesses that are the pillars of CBD. The bank’s Facebook page has already surpassed 100,000 likes. John Tuke I would also like to take this opportunity to welcome and introduce Mr. Alain Renaud, who has recently joined us as General Manager - Corporate, Commercial & Investment Shamsa Al Suwaidi Banking. I am sure that the new appointment, which is part of the organizational restructuring and realignment of the bank, will set the stage for CBD’s ambitious future Areej Al Yousuf growth plans. With your hard work and loyalty, and the Board of Directors’ wise guidance, I am Hussain Al Qalaf positive that we will continue delivering the best financial performance over the next years. Published on behalf of CBD by: With best regards, Peter Baltussen Contents CBD arranges AED200 Baltussen: CBD is sustaining Vacations on the million loan for the the great growth momentum card? acquisition of Mövenpick Hotel Jumeirah Beach Page 10 Page 7 Page 13 3 CBD wins Dubai Human Development Award 2013 In recognition of its outstanding organizations towards achieving Dubai’s Emiratization strategy has achieved, and we contribution towards human development, Human Development goal. CBD, among are honored to receive the Dubai Human Commercial Bank of Dubai was awarded other winners, was chosen from a list of Development Award 2013. We consider the Dubai Human Development Award 1,700 applicants. winning this award as an additional incentive 2013. His Highness Sheikh Hamdan bin for us to continue with our ambitious plans The award was announced during the 20th Mohmamed bin Rashid Al Maktoum to train and promote UAE nationals anniversary of the Business Excellence Awards presented the award to Peter Baltussen, specialized in the banking sector.” at the Madinat Arena, which was held under Chief Executive Officer and to Yaqoob Baltussen added: “Emiratization is among the patronage of His Highness Sheikh Yousuf Hassan, Deputy Chief Executive of CBD’s most prominent priorities. We have Mohammed Bin Rashid Al Maktoum, UAE Vice the Bank. This prestigious award is yet established a specialized unit to develop and President and Prime Minister and Ruler of another achievement by CBD for implement an effective Emiratization strategy Dubai. performance excellence in human that aims to consistently attract distinguished The awards were given by the development. national cadres, to train and groom them to Government of Dubai’s Business Excellence Commenting on the occasion, Baltussen occupy leadership positions in the Bank. We Department in recognition of the HR said: “Winning this prestigious award are keen to provide an environment that initiatives taken by individual business embodies the huge success that the Bank’s stimulates job growth for Emiratis.” 4 Bank sponsors Emiratization drive at Careers UAE 2014 His Highness Sheikh Maktoum bin Mohammed bin Rashid Al Maktoum, Deputy Ruler of Dubai, paid a visit to the CBD pavilion at the “Careers UAE 2014”, which was held at Dubai International Convention and Exhibition Center. The Bank, as a silver sponsor for this annual event, had a booth in which HR staff and CBD executives met future employees. Through this participation, CBD showcased the career opprotunities available to UAE nationals and provided the students relevant information about the various training programs and the career path they can have at CBD. HH Sheikh Maktoum, who met local employees of the bank, was briefed on the efforts made by CBD in Emiratizing jobs and its future plans in this regard. Praising the Bank’s Emiratization drive, HH Sheikh Maktoum urged the local employees to dedicate themselves to work for the nation’s pride and dignity. Careers UAE is a leading recruitment and training event in the country that serves as a key platform for qualified Emirati graduates and experienced professionals. Shorouk Al Redha, Head of Human Resources said: “CBD is proud to be part of this initiative and we fully support the nation’s Emiratization march. We encourage and invite Emirati graduates to join the banking sector in general and CBD in particular.” 5 MoU with Higher Colleges of Technology to empower more UAE nationals Technology, praised Commercial Bank of Dubai for its initiatives to assist young Emiratis gain valuable skills and experience for vital careers in the banking and finance sectors. Dr Al Mulla said: “This partnership with Commercial Bank of Dubai will result in empowering our graduates with the knowledge, skills, and confidence to contribute effectively to the nation and its growing economy, as well as to reach their full potential and to ultimately lead them to successful future careers.” Also under the MoU, the Bank will give DMC an annual donation towards the student financial aid. The money will go to the Associated Students Fund at the college. As part of CBD’s mandate to attract UAE DMC students, enhancing their Besides training the students, the CBD nationals and develop their skills to employment prospects. outlet will extend its full range of banking empower them to play a greater role in the “Since its inception, Commercial Bank of services and products to students, staff, banking sector, the Bank signed a Dubai has considered Emiratization as one and alumni of DMC at competitive rates. Memorandum of Understanding (MoU) of its priorities and has continued its Other initiatives under the MoU include: with the Higher Colleges of Technology. mission-critical strategy of employing and inviting and sponsoring students to The MoU was signed by Dr. Saoud Al developing the skill-sets of UAE nationals,” industry events, conferences and Mulla, Director of the Higher Colleges of said Yaqoob Yousuf Hassan. promotions, wherever possible, offering Technology and Yaqoob Yousuf Hassan, He added: “As part of that commitment, work placement, summer employment, job Deputy Chief Executive at CBD. we continue with this collaboration which shadowing, permanent employment Under the MoU, the Bank will open an stems from both sides’ desire to develop opportunities; hosting on the DMC campus, outlet in the Student Center complex at skills and opportunities, and train students on occasion, international financial HCT-Dubai Men’s College (DMC). It aims to for employment in the financial services services and banking professionals as groom UAE nationals and prepare them for and banking sectors in Dubai, and guest speakers; and giving access to the a rewarding career in the banking industry. specifically for employment at the CBD.” CBD’s own training department and staff to The bank will provide hands-on work Speaking at the event, Dr Saoud Al help align the college programs with experience and professional training to Mulla, Director of the Higher Colleges of industry standards. Commercial Bank of Dubai Key Financial Highlights of Q2 – 2014 • Operating profit for the first half corresponding period last year. It was AED 30.9 billion at the end of 2013. increased by 4.3% to AED 718 milion, 4.2% higher when compared to AED 44.5 as compared to AED 688 million for the billion as of December 31, 2013. • Capital adequacy ratio remained same period last year. robust at 20%. CBD’s Tier 1 capital • Loans and advances stood at AED ratio was at 18.6%. This is significantly • Net profit for the first-half of 2014 31.3 billion as of June 30, 2014, 6.8% above the regulatory thresholds of 12% was 17% higher at AED 298 million as more than 29.3 billion for the same and 8%, respectively, mandated by the compared to AED 251 million for the period last year. It was 3.4% higher than UAE Central Bank Leverage Ratio as same period last year. This is the AED 30.3 billion as on December 31, per Basel III guidelines. highest first half-yearly profit achieved 2013. by CBD. • Return On Average Assets • Customer deposits amounted to AED increased to 2.6% for the first half of • Total assets of AED 46.3 billion as 32.3 billion on June 30, 2014, 12.1% higher 2014, when compared to 2.4% for the of June 30, 2014, were 9.4% higher than AED 28.8 billion for the same period same period last year.