WAM Dubai: Commercial Bank of Dubai on Wednesday reported a decrease of 7.9% in net profits to AED 243 million during the first quarter of 2012 compared with the same period in 2011.

The three past months saw 1.3% cent increase in operating profits to AED 331 million during the first quarter of 2012, compared to AED 327 million for the same period of 2011.

"The increase in operating profit was supported by an interest expense decrease of 30% and 5.7% increase in non-interest income of which fees and commission income increased by 2.7% while foreign exchange income increased by 13.5%," the bank said in a statement.

"Continuing the Bank's prudent provisioning policy, additional provisions of AED 96 million were set aside during the quarter; an increase of 26 per cent when compared to quarter 1-2011 resulting in net profits for the first quarter amounting to AED 243 million when compared to AED 263 million a year earlier," it added.

Loans and advances totaled AED 27.6 billion as at 31st March 2012 up by 2.8% compared to last year end. Customers' deposits at AED 28.3 billion as at the end of the first quarter were virtually unchanged compared to 31, December 2011, the bank said.

The increase in CBD's operating profit was supported by an interest expense decrease of 30 per cent and 5.7 per cent increase in non-interest income of which fees and commission income increased by 2.7% while foreign exchange income increased by 13.5%.

WAM/MMYS