Commercial Bank of Dubai (CBD) reported a net profit after tax of Dh1.452 billion for the first half of 2024, marking a 30.2 percent increase on a pre-tax basis and an 18.5 percent rise on a post-tax basis compared to the same period in 2023. The bank attributed this growth to robust loan expansion, which bolstered net interest income, complemented by increased non-funded income and a reduced cost of risk that outweighed higher operating expenses and corporate tax.
High global interest rates continued to support the bank's net interest income, while positive trends in UAE business activity, population growth, and business confidence are expected to remain supportive. The public sector's strategic investments and economic growth are anticipated to counterbalance potential headwinds from interest rate reductions. Operating income rose by 10.1 percent to Dh2.71 billion, driven by higher net interest income, fees, and commissions, while operating expenses increased by 11.0 percent to Dh644 million.
Capital ratios remained robust, with the capital adequacy ratio at 16.05 percent, Tier 1 ratio at 14.92 percent, and Common Equity Tier 1 ratio at 12.83 percent, all comfortably above regulatory requirements. Gross loans increased by 7.1 percent to Dh95.2 billion, and total assets grew by 9.5 percent to Dh141.3 billion. Customer deposits rose by 13.1 percent to Dh99.8 billion, with low-cost CASA accounting for 47.8 percent of the total.
Dr. Bernd van Linder, CEO of CBD, highlighted the bank's strong performance, attributing it to robust loan growth and improved asset quality. He emphasized the bank's commitment to executing its strategy and maintaining high-quality performance. CBD also announced partnerships with du and HPE Greenlake to enhance its hybrid cloud capabilities, aiming to improve customer experience and operational efficiency.
Furthermore, CBD remains dedicated to achieving carbon neutrality by 2030 and supporting the UAE's Net Zero by 2050 initiative. The bank's $500 million Green Bond issuance was recognized with the EMEA Finance Achievement Awards 2023 as the "Best Financial Institution Green Bond in EMEA," underscoring its commitment to sustainable finance.
