Commercial Bank International : CBI Financial Statement March 2024 - English / Arabic

Commercial Bank International P.S.C.

Review report and interim financial information For the three months period ended 31 March 2024

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Commercial Bank International P.S.C.

Table of contents

	Pages
Independent auditor's report on review of condensed interim consolidated financial
information	1
Condensed consolidated statement of financial position	2
Condensed consolidated income statement	3
Condensed consolidated statement of comprehensive income	4
Condensed consolidated statement of changes in equity	5
Condensed consolidated statement of cash flows	7
Notes to the condensed consolidated financial statements	9
Appendix: Glossary of abbreviations	40

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Report on review of the interim financial information

To the Board of Directors of Commercial Bank International PSC

Introduction

We have reviewed the accompanying condensed consolidated statement of financial position of Commercial Bank International PSC (the "Bank") and its subsidiaries (collectively referred to as "the Group") as at 31 March 2024 and the related condensed consolidated income statement, condensed consolidated statements of comprehensive income, changes in equity and cash flows for the three month period then ended and other related explanatory notes. Management is responsible for the preparation and presentation of this interim financial information in accordance with International Accounting Standard 34 ("IAS 34") Interim Financial Reporting. 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 the 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 Interim Financial Reporting as issued by the IASB.

GRANT THORNTON UAE

Farouk Mohamed

Registration No: 86

Abu Dhabi, United Arab Emirates

Date: 2 May 2024

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3 Commercial Bank International P.S.C. Condensed consolidated income statement

For the three months period ended 31 March
	Note	31 March		31 March
		2024	2023
		AED '000		AED '000
		(unaudited)		(unaudited)
Interest income	17	241,405	243,062
Income from Islamic financing and investing assets	17	18,974	15,578
Total interest income and income from Islamic financing and
investing assets		260,379	258,640
Interest expense	17	(155,945)	(132,021)
Distribution to Islamic depositors	17	(22,026)	(24,868)
Net interest income and income from Islamic financing and
investing assets		82,408	101,751
Fee and commission income		34,236	35,595
Fee and commission expense		(4,973)		(4,579)
Net fee and commission income		29,263	31,016
Other operating income, net	18	8,744		14,890
Net operating income		120,415	147,657
General and administrative expenses		(86,065)	(116,735)
Net impairment reversal on financial assets	19	6,079	2,134
Net impairment reversal on non-financial assets		-	980
Profit for the period before tax		40,429	34,036
Income tax charge	20	(3,850)		-
Profit for the period		36,579	34,036
Profit for the period attributable to:
Owners of the Bank		35,916	32,821
Non-controlling interests		663	1,215
Profit for the period		36,579	34,036
Basic and diluted earnings per share (AED)	21	0.021	0.019

The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.

4 Commercial Bank International P.S.C.

Condensed consolidated statement of comprehensive income

For the three months period ended 31 March
	31 March		31 March
	2024	2023
	AED '000		AED '000
	(unaudited)		(unaudited)
Profit for the period	36,579	34,036
Other comprehensive income
Items that will not be reclassified subsequently to profit or loss:
Changes in fair value of financial assets measured at fair value
through other comprehensive income	272	292
Other comprehensive income for the period	272	292
Total comprehensive income for the period	36,851	34,328
Total comprehensive income attributable to:
Owners of the Bank	36,188	33,113
Non-controlling interests	663	1,215
Total comprehensive income for the period	36,851	34,328

The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.

5 Commercial Bank International P.S.C.

Condensed consolidated statement of changes in equity

For the three months period ended 31 March
									Equity
			Tier 1						attributable		Non-
	Share		capital				Retained		to owners of		controlling
	capital		securities		Reserves		earnings		the Bank		interests		Total
	AED '000		AED '000		AED '000		AED '000		AED '000		AED '000		AED '000
2024
Balance as at 31 December 2023 - audited	1,737,383	459,125	525,291	31,083	2,752,882	120,057	2,872,939
Profit for the period	-	-	-	35,916	35,916	663	36,579
Other comprehensive income for the period	-		-		272		-		272		-		272
Total comprehensive income for the period	-		-		272		35,916		36,188		663		36,851
Transfer from reserve to retained earnings (Note 16)	-		-		28,323		(28,323)		-		-		-
Balance as at 31 March 2024 - unaudited	1,737,383		459,125		553,886		38,676		2,789,070		120,720		2,909,790

The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.

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6 Commercial Bank International P.S.C.

Condensed consolidated statement of changes in equity (continued)

For the three months period ended 31 March

									Equity
			Tier 1						attributable		Non-
	Share		Capital				Accumulated		to owners of		Controlling
	capital		Securities		Reserves		losses		the Bank		interests		Total
	AED '000		AED '000		AED '000		AED '000		AED '000		AED '000		AED '000
2023
Balance as at 31 December 2022 - audited	1,737,383		459,125		551,118		(152,330)		2,595,296		103,337	2,698,633
Profit for the period	-	-	-	32,821	32,821	1,215	34,036
Other comprehensive income for the period	-		-		292		-		292		-		292
Total comprehensive income for the period	-		-		292		32,821		33,113		1,215		34,328
Transfer from reserve to retained earnings (Note 16)	-		-		(32,939)		32,939		-		-		--
Balance as at 31 March 2023 - unaudited	1,737,383		459,125		518,471		(86,570)		2,628,409		104,552		2,732,961

The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.

The content is classified as Public

7 Commercial Bank International P.S.C.

Condensed consolidated statement of cash flows

For the three months period ended 31 March
		2024	2023
		AED '000		AED '000
		(unaudited)		(unaudited)
Cash flows from operating activities
Profit before tax for the period	40,429	34,036
Adjustments for:
Depreciation of property and equipment	5,492	6,406
Depreciation of investment property	316	216
Amortisation of intangible assets	2,537	2,433
Impairment reversal of financial assets	(6,079)	(2,134)
Impairment reversal of non-financial assets	-	(980)
Amortisation of financial assets measured at amortised cost	1,292	1,263
Gain on financial assets measured at FVTPL	(1,405)	(2,574)
Dividend income	-	(207)
Gain on disposal of investment properties	(230)	-
Provision for end of service benefits	2,113		1,690
		44,465	40,149
Changes in operating assets and liabilities:
Increase in balances with the Central Bank of the UAE	(37,870)	(187,806)
Decrease/(increase) in deposits and balances due from banks with original
maturity of 90 days or more	429,382	(39,957)
Increase in financial assets measured at amortised cost with original maturity of
90 days or more	(354,393)	(228,834)
Decrease in loans and advances to customers	63,847	968,984
Decrease/(increase) in Islamic financing and investing assets	380,147	(169,034)
Increase in property inventory	-	(6,000)
(Increase)/decrease in receivables and other assets	(107,310)	183,233
Increase in due to the central bank of the UAE	12,160	25,657
Decrease in deposits and balances due to banks	(151,531)	(1,606,964)
Increase in customers' deposits	118,508	30,027
(Decrease)/increase in Islamic customers' deposits	(38,790)	227,392
Increase/(decrease) in payables and other liabilities	32,504		(215,733)
Cash generated from/(used in) operating activities	391,119	(978,886)
End of service benefits paid	(861)		(900)
Net cash flows generated from/(used in) operating activities	390,258	(979,786)
Cash flows from investing activities:
Purchase of property and equipment	(2,146)	(4,797)
Purchase of intangible assets	(463)	(839)
Net settlement of financial instruments measured at FVTPL	(5,512)	1,306
Proceeds from sale of investment properties	15,011	-
Dividend received	-	207
Purchase of financial assets measured at amortised cost	-		(251,047)
Net cash generated from/(used in) investing activities		6,890		(255,170)

The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.

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8 Commercial Bank International P.S.C.

Condensed consolidated statement of cash flows (continued)

For the three months period ended 31 March
	Note	2024	2023
		AED '000		AED '000
		(unaudited)		(unaudited)
Net increase/(decrease) in cash and cash equivalents		397,148	(1,234,956)
Cash and cash equivalents at the beginning of the period		1,105,953		2,524,394
Cash and cash equivalents at the end of the period	23	1,503,101		1,289,438

The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.

The content is classified as Public