Message from the CEO Dear Colleagues, I hope that most of you have been able to spend some well-deserved time off with your families during the summer months and are ready to support the bank’s continuing growth for the remainder of the year. As expected, the first six months of 2013 have indeed shown solid growth in our loan portfolio across all clients segments, with consumer loans growing at more than 10% and corporate and commercial lending up 7% compared to the end of 2012. It is fair to say that a combination of our focused sales activities and the improved UAE economy have helped us to achieve this positive result. For the rest of 2013, we anticipate further growth of both loan and deposit volumes as well as interest and fee incomes. However, in view of the increasing competition, we need to ensure that we continue to provide top class service, so that we can continue to cross sell our products and become the “Main Banker” for most of our clients. The deliberate efforts to provide our clients with a range of products have been quite successful so far, as the cross-sell ratios especially for Al Dana and other consumer clients have increased significantly. Of course, the increased sales volumes that we have witnessed required the support of departments to improve their productivity and efficiency which, by and large, is happening. The turn-around times are gradually improving for most processes, which is Editorial a key factor in keeping our clients satisfied. Going forward, we will have to continue to Team meet and exceed our clients’ expectations. Another important milestone for Commercial Bank of Dubai in the first half-year of 2013 was its entrance into the capital markets, with the very successful debut five-year Badr Soueidan bond issue for USD500 million. I’m pleased to note that the bond was heavily John Tuke oversubscribed, showing strong investor interest for our bank both internationally and regionally. The proceeds of the bond issue will be used to further support the growth of Shamsa Al Suwaidi our bank. Areej Al Yousuf Hussain Al Qalaf Our Attijari Al Islami offering received the prestigious accolade “Best Islamic Bank in the UAE” from The Banker, which is published by the internationally renowned Financial Times. This encouraging sign of appreciation will no doubt further support the strong Published on behalf of CBD growth of our Islamic finance activities. by: The above-mentioned positive developments are expected to help the bank in its ambition to significantly grow its revenues in the years to come. At the same time we see that provisions are shrinking as the quality of our loan portfolio is improving. Therefore, I’m optimistic about the prospect for the bank and look forward to your continued commitment and engagement, which has helped the bank to become what it is today. With best regards, Peter Baltussen Contents CBD wins CNME CBD, Western CBD’s senior Award for its Union to introduce management granted storage project pre-paid payroll ILM coaching card in UAE certificate Page 07 Page 08 Page 10 3 Praise for CBD’s support to local talents As part of its efforts to encourage more local hires and attract new graduates to the banking sector, Commercial Bank of Dubai sponsored the Careers UAE exhibition, held in Dubai International Convention and Exhibition Centre on April 30 to May 2. His Highness Sheikh Majid bin Mohammed bin Rashid Al Maktoum, Chairman of Dubai Culture and Arts Authority, paid a visit to CBD’s stand and was briefed on CBD’s current efforts and future plans in the field of Emiratisation. His Highness also praised CBD for its unwavering support to this important goal and national progress. Yaqoob Yousuf Hassan, CBD Deputy Chief Executive said: “Over the past two decades, CBD has put the Emiratization which included its participation in the at CBD as “a strategy that invests greatly on issue among its top priorities. As a leading “Masrafi” program, which was launched by intensive local human resources and national institution, the Bank has a role to Emirates Institute for Banking and Financial thoroughly implements the Bank’s facilitate the country’s social and economic Studies to increase the localization percentage ambitious plans for training and development. It is our commitment to in the banking sector. qualification.” attract, qualify, and train UAE nationals In addition, CBD visited college students, “The role of UAE locals in the banking and help them reach leadership positions in as in previous years, to encourage them to sector is vital because of their extensive various departments and branches.” join the banking sector and introduce to knowledge of the market. Thanks to CBD’s CBD has one of the highest nationalization them the benefits of joining the sector. consistent diligence and commitment to its rates within the UAE banking sector, with It also participated in the “Absher” initiative promises, we are now reaping the fruits of locals accounting for 41 per cent of the bank’s and many other special programs that were in our wise policies: most of our branch workforce. line with its corporate social responsibility managers are locals and the ratio of Emirati The Bank targeted 2013 as the year of philosophy. females in leading positions in the bank is nationalization, launching various initiatives, Hassan described the localization process significant,” he said. AED2 million donated to Sheikh Mohammed’s “Dress 1 Million Needy Children” campaign Commercial Bank of Dubai contributed AED2 million in response to the campaign launched by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of UAE and Ruler of Dubai, to dress one million needy children. The donation was part of the Bank’s efforts to help improve lives in line with its corporate social responsibility (CSR). It came in timely as the country observed the Holy month of Ramadan, when the virtue of giving is reflected upon. The Bank has been proactive in furthering the UAE’s social development while the country continues to thrive under good leadership. CBD Deputy Chief Executive Yaqoob Yousuf Hassan noted that the initiatives of Sheikh Mohammed have contributed in spreading joy and happiness among indigents while providing the basic necessities in life. CBD’s AED2 million donation was sufficient to dress 50,000 children. Over the years, CBD has been undertaking CSR-related activities such as taking part in the projects of Dubai Cares, a philanthropic organization working to improve children’s access to quality primary education in developing countries. 4 CBD signs MoU with Beit Al Khair Society to develop cashless solution WITH THIS PARTNERSHIP, WE ARE NOT ONLY PROUDLY ADVANCING THE UAE’s goals OF IMPLEMENTING CASHLESS TRANSACTIONS, BUT MORE IMPORTANTLY, WE ARE ALSO ASSISTING THE VALIANT HUMANITARIAN EFFORTS OF THE SOCIETY.” CBD CHIEF EXECUTIVE OFFICER PETER BALTUSSEN Commercial Bank of Dubai has of the Society and the Bank witnessed the the goal of the government of the United developed a co-branded pre-paid card for signing. Arab Emirates to promote the use of Beit Al Khair Society, making it the first Beneficiaries of Beit Al Khair Society electronic services in all financial bank in the Arab region to launch an will receive their benefits electronically via transactions. We are delighted about this electronic financial solution for charity. the pre-paid card, eliminating the need to partnership with Beit Al Khair Society.” The move is in line with the Bank’s visit the society’s office. The pioneering He added that this will provide cashless commitment to the highest standards of solution offers convenience and flexibility banking services that help facilitate work, corporate social responsibility and its for both parties while facilitating the reduce the cost of transactions, and make leading role in the development of society’s work. At the same time, the Beit Al Khair Society’s charity work more innovative cashless financial solutions. solution cuts the risk involved in the distinct. CBD Chairman Saeed Ahmed Ghobash distribution of large amounts of cash and Abdeen Taher Al-Awadi, General and Beit Al Khair Society Chairman Juma cheques. Manager of Beit Al Khair Society, was Al Majid signed a memorandum of CBD Chief Executive Officer Peter pleased with this partnership involving understanding (MoU) for the co-branded Baltussen said: “This partnership is in line CBD, pointing out that it would benefit card in the Juma Al Majid Cultural and with the Bank’s commitment to its social nearly 5,000 families that receive the Heritage Center in Dubai. Senior officials responsibility towards the community and society’s aid every month. Partnership with CDA on cashless financial solution Commercial Bank of Dubai’s steady commitment to corporate social responsility is manifested in many ways. In its latest effort to promote better lives for UAE residents, CBD has formed a partnership with the Community Development Authority (CDA) to come out with a prepaid card for the authority’s beneficiaries. CBD signed a memorandum of understanding in June 2013 with CDA for the cashless financial solution. The agreement was signed by Nabil Tayeb Khoury, Head of Attijari Al Islami and Ahmad Al Muhairi, CEO of Programs and Social Services. The signing ceremony was attended by senior officials from both sides. “CBD is devoted to helping make government operations in Dubai and the entire UAE quicker and more cost-efficient. As a key ingredient of good governance, this is needed in sustaining a progressive and prosperous community,” said Khoury. 5 Attijari Al Islami named 2013’s Islamic Bank of the Year for UAE THIS PRESTIGIOUS AWARD FOR CBD IS YET ANOTHER MILESTONE IN LINE WITH OUR VISION TO LEAD THE WAY TO GREATER ECONOMIC AND SOCIAL PROSPERITY.