Commercial Bank of Dubai reports 46.4% rise in 9-month net profit

Commercial Bank of Dubai on Wednesday announced a record net profit of Dh1.936 billion for the first nine months of 2023, up 46.4 per cent compared to the corresponding period in 2022.

Outstanding revenue contribution across net interest and other operating income, backed by strong loan growth generated a significant rise in net profit. Notably, market interest rates remained high, which contributed to the financial uplift. The UAE economic outlook and business confidence is strong, supported by resilient domestic activity that should enable economic growth through 2024.

Operating income for the first nine months was Dh3,716 million, up 36.6 per cent, attributable to an increase in Net Interest Income (NII) by 43.2 per cent owing to loan growth and higher market rates, and growth in Other Operating Income (OOI) by 22.5 per cent from improved business accomplishments.

Operating expenses were Dh881 million, with the increase in cost driven by inflation and ongoing investments in digitisation, technology, business growth, governance and regulatory compliance. The cost-to-income ratio remains excellent at 23.72 per cent.

Operating profit was Dh2.835 billion, up by 42.5 per cent. Net impairment allowances were Dh899 million.

As at 30 September 2023, capital ratios remained strong with the capital adequacy ratio (CAR) at 16.80 per cent, Tier 1 ratio at 15.65 per cent and Common Equity Tier 1 (CET1) ratio at 13.34 per cent, well in excess of regulatory requirements. Gross loans were Dh88.5 billion, an increase of 11.1 per cent compared to 31 December 2022. Advances to stable resources ratio (ASRR) stood at 87.23 per cent.

“CBD is taking proactive measures to tackle climate change head-on. Our commitment to carbon neutral operations by 2030 signifies our dedication to a sustainable future. As the bank that is backing the nation’s ambition, we take pride in aligning our efforts with the UAE’s net-zero 2050 goal.”