Commercial Bank of Dubai (CBD) announced a net profit of Dh1.45 billion for the first six months of 2024, up 30.2% compared to the same period in 2023. The growth was primarily driven by strong loan performance, increased revenues and improved asset quality.
CBD’s strong loan growth during the first half of 2024 resulted in a robust net interest outcome. This was further supported by non-funded income and a lower cost of risk, which more than offset higher expenses and the corporate tax charge. High global market interest rates continued to contribute positively to the bank’s net interest income. Additionally, the positive business environment in the UAE, characterised by growing business activity, population growth and business confidence, is expected to remain supportive in the coming periods. Public sector strategic intent, investment and broad-based economic growth are anticipated to counterbalance any potential challenges from future interest rate cuts.
“CBD has delivered a commendable result attributable to strong loan growth with higher revenues at outstanding returns and improved overall asset quality,” said Dr Bernd van Linder, CEO of CBD. “The bank is well positioned to continue to deliver on our strategic objectives and high-quality performance for the remainder of 2024 and beyond.”
CBD reported an increase in operating income to Dh2.71 billion, a 10.1% year-on-year rise, driven by net interest income, fees, and commissions. Operating profit also saw a notable increase, reaching Dh2.06 billion, up 9.8% year-on-year.
