Commercial Bank International P.J.S.C.
Review report and interim financial information
For the six months period ended 30 June 2024
The content is classified as Public
Commercial Bank International P.J.S.C
Table of contents
Pages | |
Independent auditor's report on review of interim 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 | 39 |
The content is classified as Public
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Report on review of the interim financial information
To the Board of Directors of Commercial Bank International PJSC
Introduction
We have reviewed the accompanying condensed consolidated statement of financial position of Commercial Bank International PJSC (the "Bank") and its subsidiaries (collectively referred to as "the Group") as at 30 June 2024 and the related condensed consolidated income statement for the three-month and six-month period then ended, and the condensed consolidated statements of comprehensive income, changes in equity and cash flows for the six-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: 25 July 2024
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Ali Sultan Rakkad (Jul 25, 2024 11:19 GMT+3) | Saif Al Shehhi (Jul 25, 2024 12:32 GMT+4) |
3 Commercial Bank International P.J.S.C Condensed consolidated income statement
Three months period ended | Six months period ended | ||||||
Note | 30 June | 30 June | 30 June | 30 June | |||
2024 | 2023 | 2024 | 2023 | ||||
AED '000 | AED '000 | AED '000 | AED '000 | ||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||
Interest income | 246,515 | 232,395 | 487,920 | 475,457 | |||
Income from Islamic financing and investing assets | 20,738 | 20,202 | 39,712 | 35,780 | |||
Total interest income and income from Islamic | |||||||
financing and investing assets | 18 | 267,253 | 252,597 | 527,632 | 511,237 | ||
Interest expense | (156,179) | (137,414) | (312,124) | (269,435) | |||
Distribution to Islamic depositors | (24,570) | (27,763) | (46,596) | (52,631) | |||
Total interest expenses and distribution to Islamic | |||||||
depositors | 18 | (180,749) | (165,177) | (358,720) | (322,066) | ||
Net interest income and income from Islamic | 86,504 | 87,420 | 168,912 | 189,171 | |||
financing and investing assets | |||||||
Fee and commission income | 40,006 | 29,629 | 74,242 | 65,224 | |||
Fee and commission expense | (5,375) | (4,608) | (10,348) | (9,187) | |||
Net fee and commission income | 34,631 | 25,021 | 63,894 | 56,037 | |||
Other operating income, net | 19 | 8,581 | 9,780 | 17,325 | 24,670 | ||
Net operating income | 129,716 | 122,221 | 250,131 | 269,878 | |||
General and administrative expenses | (96,394) | (78,255) | (182,459) | (194,990) | |||
Net impairment reversal on financial assets | 20 | 16,155 | 878 | 22,234 | 3,012 | ||
Net impairment reversal on non-financial assets | - | - | - | 980 | |||
Profit for the period before tax | 49,477 | 44,844 | 89,906 | 78,880 | |||
Income tax charge | 21 | (4,601) | - | (8,451) | - | ||
Profit for the period | 44,876 | 44,844 | 81,455 | 78,880 | |||
Profit for the period attributable to: | |||||||
Owners of the Bank | 44,548 | 44,591 | 80,464 | 77,412 | |||
Non-controlling interests | 328 | 253 | 991 | 1,468 | |||
Profit for the period | 44,876 | 44,844 | 81,455 | 78,880 | |||
Basic and diluted earnings per share (AED) | 22 | 0.026 | 0.026 | 0.046 | 0.045 |
The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.
4 Commercial Bank International P.J.S.C
Condensed consolidated statement of comprehensive income
Three months period ended | Six months period ended | ||||||
30 June | 30 June | 30 June | 30 June | ||||
2024 | 2023 | 2024 | 2023 | ||||
AED '000 | AED '000 | AED '000 | AED '000 | ||||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||
Profit for the period | 44,876 | 44,844 | 81,455 | 78,880 | |||
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 | 856 | 382 | 1,128 | 674 | |||
Other comprehensive income for the period | 856 | 382 | 1,128 | 674 | |||
Total comprehensive income for the period | 45,732 | 45,226 | 82,583 | 79,554 | |||
Total comprehensive income attributable to: | |||||||
Owners of the Bank | 45,404 | 44,973 | 81,592 | 78,086 | |||
Non-controlling interests | 328 | 253 | 991 | 1,468 | |||
Total comprehensive income for the period | 45,732 | 45,226 | 82,583 | 79,554 | |||
The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.
5 Commercial Bank International P.J.S.C
Condensed consolidated statement of changes in equity
For the six months period ended 30 June | |||||||||||||
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 | - | - | - | 80,464 | 80,464 | 991 | 81,455 | ||||||
Other comprehensive income for the period | - | - | 1,128 | - | 1,128 | - | 1,128 | ||||||
Total comprehensive income for the period | - | - | 1,128 | 80,464 | 81,592 | 991 | 82,583 | ||||||
Interest paid on Tier 1 Capital securities | - | - | - | (13,760) | (13,760) | - | (13,760) | ||||||
Transfer from retained earning to | |||||||||||||
reserve (Note 17) | - | - | 78,962 | (78,962) | - | - | - | ||||||
Balance as at 30 June 2024 - unaudited | 1,737,383 | 459,125 | 605,381 | 18,825 | 2,820,714 | 121,048 | 2,941,762 |
The accompanying notes and appendix form an integral part of these condensed consolidated financial statements.
The content is classified as Public
6 Commercial Bank International P.J.S.C
Condensed consolidated statement of changes in equity (continued)
For the six months period ended 30 June | |||||||||||||
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 | - | - | - | 77,412 | 77,412 | 1,468 | 78,880 | ||||||
Other comprehensive income for the period | - | - | 674 | - | 674 | - | 674 | ||||||
Total comprehensive income for the period | - | - | 674 | 77,412 | 78,086 | 1,468 | 79,554 | ||||||
Transfer from reserve to retained earnings (Note 17) | - | - | (35,639) | 35,639 | - | - | - | ||||||
Balance as at 30 June 2023 - unaudited | 1,737,383 | 459,125 | 516,153 | (39,279) | 2,673,382 | 104,805 | 2,778,187 |
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.J.S.C
Notes to condensed consolidated financial statements For the six months period ended 30 June 2024
For the six months period ended 30 June | |||||
2024 | 2023 | ||||
AED '000 | AED '000 | ||||
(unaudited) | (unaudited) | ||||
Cash flows from operating activities | |||||
Profit before tax for the period | 89,906 | 78,880 | |||
Adjustments for: | |||||
Depreciation of property and equipment | 10,789 | 9,920 | |||
Depreciation of investment property | 449 | 432 | |||
Amortisation of intangible assets | 5,013 | 4,912 | |||
Impairment reversal of financial assets | (22,234) | (3,012) | |||
Impairment reversal of non-financial assets | - | (980) | |||
Amortisation of financial assets measured at amortised cost | 2,613 | 2,540 | |||
Gain on financial assets measured at FVTPL | (2,100) | (3,645) | |||
Dividend income | (178) | (448) | |||
Gain on disposal of property and equipment | - | (55) | |||
Provision for end of service benefits | 4,376 | 3,388 | |||
88,634 | 91,932 | ||||
Changes in operating assets and liabilities: | |||||
Increase in balances with the Central Bank of the UAE | (131,836) | (251,130) | |||
Increase in deposits and balances due from banks with original maturity of 90 | |||||
days or more | (123,746) | (131,739) | |||
Increase in financial assets measured at amortized cost with original maturity of | |||||
90 days or more | (107,342) | 37,203) | |||
Decrease in loans and advances to customers | 384,727 | 1,029,310 | |||
Increase in Islamic financing and investing assets | (673,421) | (392,065) | |||
Decrease in property inventory | 14,900 | 11,825 | |||
(Increase)/decrease in receivables and other assets | (217,153) | 576,661 | |||
(Decrease)/increase in due to the central bank of the UAE | (1,783) | 87,417 | |||
Decrease in deposits and balances due to banks | (921,206) | (509,860) | |||
Decrease/increase in customers' deposits | 435,750 | (893,484) | |||
Increase in Islamic customers' deposits | 1,181,165 | 111,493 | |||
Increase/(decrease) in payables and other liabilities | 249,667 | (559,221) | |||
Cash from / (used in) operating activities | 178,356 | (1,166,064) | |||
End of service benefits paid | (1,296) | (1,098) | |||
Net cash flows from / (used in) operating activities | 177,060 | (1,167,162) | |||
Cash flows from investing activities: | |||||
Purchase of property and equipment | (8,975) | (8,608) | |||
Proceeds from disposal of property and equipment | - | 55 | |||
Purchase of intangible assets | (584) | (839) | |||
Proceeds from sale of investment properties | 14,781 | - | |||
Purchases of financial assets measured at amortised cost | - | (359,677) | |||
Net settlement of financial instruments measured at FVTPL | (7,313) | 2,804 | |||
Dividend received | 178 | 448 | |||
Acquisition of investment in associate | (10,000) | - | |||
Purchase of financial assets measured at FVTPL | (1,836) | - | |||
Net cash used in investing activities | (13,749) | (365,817) |
The accompanying notes and appendix form an integral part of these condensed consolidated financial statements
The content is classified as Public
8 Commercial Bank International P.J.S.C
Notes to condensed consolidated financial statements (continued)
For the six months period ended 30 June 2024
For the six months period ended 30 June | ||||
Note | 2024 | 2023 | ||
AED '000 | AED '000 | |||
(unaudited) | (unaudited) | |||
Cash flows from financing activities | ||||
Interest paid on Tier 1 Capital securities | (13,760) | - | ||
Net cash used in financing activities | (13,760) | - | ||
Net increase /(decrease) in cash and cash equivalents | 149,551 | (1,532,979) | ||
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 | 22 | 1,255,504 | 991,415 | |
Non-cash transaction | ||||
Repossession of properties and equipment form loan and | ||||
advance to property inventory and other assets held of sale | 405,666 | - |
The accompanying notes and appendix form an integral part of these condensed consolidated financial statements
The content is classified as Public