Commercial Bank of Dubai posts 41.5% jump in H1 profit

The bank reported an operating income of Dhs2.5bn in the first six months of 2023, up 41.9 per cent from Dhs1.7bn for the same period a year earlier

by Gulf Business

July 12, 2023

Commercial Bank of Dubai posts 41.5 jump in H1 profit

Image credit: Christopher Pike/ Getty Images

Commercial Bank of Dubai (CBD) posted a 41.5 per cent increase in half-year net profit to $334m (Dhs1.2bn), which the lender said was helped by outstanding revenue contribution – across net interest and operating income – and robust loan growth.

CBD reported an operating income of Dhs2.5bn in the first six months of 2023, up 41.9 per cent from Dhs1.7bn for the same period a year earlier, driven by a 56 per cent increase in net interest income due to higher interest rates and a 15.3 per cent growth in other operating income from improved business activities.

The UAE economic outlook and business confidence remain encouraging, backed by buoyant domestic activity that is expected to drive economic growth for the remainder of 2023.

“We remain well positioned in meeting our long-term goals and deliver superior performance outcomes in 2023 and beyond,” said Dr Bernd van Linder, the CEO of CBD.

The bank said its net loans and advances increased by 2.4 per cent Dhs80.8bn in the six months ended June 30 compared to Dhs78.9bn during the same period in 2022. Customers’ deposits rose by 1.1 per cent to reach Dhs85.7bn in the first half of the year from Dhs84.8bn in H1 2022.

#CBD is proud to report a record net profit of AED 1,225 million for the first half of 2023, up 41.5% compared to the corresponding period in 2022. For more information, please visit https://t.co/gEOxqPuvhr pic.twitter.com/zwJEoyofzs

— CBD (@CBDUAE) July 12, 2023

CBD’s total assets edged up to Dhs123.1bn in H1 2023, an increase of 4.8 per cent from Dhs118bn in the first half of 2022.

The bank’s liquidity position remained robust with the advances to stable resources ratio at 86.18 per cent as of June 30 (December 2022: 87.09 per cent), compared to the Central Bank of the UAE’s (CBUAE) maximum of 100 per cent.

Commercial Bank of Dubai growth strategy

CBD said it seeks to enhance its digital experiences and technology as the bank continues to develop innovative banking solutions to provide its customers with a seamless banking experience.

Van Linder said CBD will continue to actively support the digital transformation programmes in the country including the CBUAE FIT programme while supporting customers and the broader UAE economy.

CBD raised $500m from its debut green bonds in June, following the bank’s integration of environmental, social and governance (ESG) considerations into its corporate strategy. “This accomplishment marks a momentous milestone in our ESG programme and shows our commitment to sustainable finance during the UAE Year of Sustainability,” said Van Linder.

The bank said the proceeds from the green bonds will be used to finance eligible projects under its Sustainable Financing Framework that was issued in March. This includes green buildings, renewable energy, clean transportation access to education and pollution prevention and control.

CBD has integrated ESG considerations into its corporate strategy and the bank pledged to continue to support initiatives that promote environmental sustainability. The lender said it is committed to actively contributing to a more sustainable and inclusive society and economy aligned with the sustainability ambitions of the UAE.