Commercial Bank of Dubai (CBD) yesterday announced that its second-quarter profit rose to Dh260 million from Dh255.3 million in the same quarter last year. For the first half of 2011 the bank\'s net profit after provisions for non-performing loans amounted to Dh523 million as compared to Dh513 million a year earlier. Total income in the second quarter of 2011 increased by 1.8 per cent to Dh471 million as against Dh462 million for the same quarter last year. Net interest income and income from Islamic financing of Dh339 million for the second quarter of 2011 was nearly 2 per cent up, compared to Dh333 million in the first quarter. The increase was mainly contributed to a further decrease of the bank\'s cost of funding. Article continues below Interest margin The net interest margin was at 4.08 per cent for the second quarter of 2011 compared to 3.91 per cent tin the first quarter of 2011. Fee income and other non-interest income for the first six months of 2011 reported a growth of 5 per cent over the same period last year. \"CBD\'s strong first half year results reflect our ability to deliver solid and consistent returns to our shareholders. The bank further improved its capital adequacy ratio to a very high 23.32 per cent as well as its liquidity ratios, which ensures that the bank is geared up to grow and support the recovering UAE economy, \" said Peter Baltussen, Chief Executive Officer of Commercial Bank of Dubai. CBD\'s provisions for impairment losses on loans and Islamic financing declined from Dh179.46 million to Dh153.62 million during the first half of the year compared to the same period last year while the second-quarter provisions declined 8.7 per cent from Dh84.91 million in the second quarter of last year to Dh77.51 million in the second quarter this year. Credit quality \"The bank continues to proactively manage credit quality and impaired loans; the impairment charge for the first half of 2011 dropped by 14 per cent which reflects an improvement in the market conditions and the recovery of the UAE economy overall. Non-performing loans are covered up to 88.5 per cent by provisions against potential losses,\" the bank said in a statement. Assets up CBD\'s total assets reached Dh38.1 billion as at June 30, up 3.2 per cent compared to Dh36.9 billion by end of June 2010. Loans and advances declined by 7 per cent to Dh26.1 billion compared to Dh28.1 billion in the first half of 2010. The bank\'s customers\' deposits marginally increased by 0.25 per cent to Dh28.1 billion. The bank\'s liquidity position further strengthened, resulting in a strong advances to stable resources ratio of 86.5 per cent, far below the prescribed maximum of 100 per cent as stipulated by the regulator.