CBD Reaffirmed As A- With A Stable Outlook

Fitch recognises Commercial Bank of Dubai ‘s ( CBD ) strong capitalisation and consistent performance through the crisis. Fitch expects revenue and profit growth given the still challenging operating environment. Fitch indicates that CBD ‘s margins remain strong due to its niche focus on family-owned business groups in the UAE, preference towards short-term lending and good access to low cost funding.

CBD continues to derive strong non-interest earnings from mainly trade finance and transaction banking. CBD ‘s Fitch core capital ratio of 19.3 per cent at end-9M12, is high compared with peers and provides a buffer against concentration risk.

Khaleej Times