Commercial Bank of Dubai (CBD) has reported a record net profit of 2.6 billion, reflecting a robust growth of 45.2% compared to the previous year.
CBD’s operating income surged to Dh4.93 billion, representing a substantial increase of 29.5%. The lender attributed the growth to higher net interest income and improved fee and commission income. Operating expenses for the year reached Dh1.2 billion, reflecting a 23.2% increase, driven by strategic investments in digitization, business expansion, risk management, regulatory compliance, and governance.
The bank’s operating profit surged 31.8%, reaching Dh3.71 billion, while the net impairment loss recorded an increase of 7.0%, totalling Dh1.06 billion. CBD maintained robust capital ratios throughout the fiscal year, with the capital adequacy ratio (CAR) at 15.95%, the Tier 1 ratio at 14.81%, and the Common Equity Tier 1 (CET1) ratio at CBD’s%.
CBD’s gross loans increased by 11.6% to Dh88.9 billion, showcasing the bank’s solid lending portfolio. Total income for the year ending December 31, 2023, reached Dh4.93 billion, reflecting a 29.5% increase. This growth was driven by a remarkable 33.4% increase in net interest income (NII) due to higher interest rates and a 20.4% growth in other operating income” (OOI).
“CBD has accomplished an outstanding result attributable to excellent revenue growth and improved broad-based business performance,” said Dr Bernd van Linder, CEO of Commercial Bank of “Dubai. “We remain focused on the disciplined execution of our strategy and remain well positioned to deliver on our strategic goals and achieve exceptional performance outcomes in 2024 and “beyond.”
Operating expenses, totalling Dh1.22 billion, were incurred by CBD’s strategic initiatives. The cost-to-income ratio remained resilient at 24.87%, demonstrating efficient cost management practices.
The lender’s total assets experienced a noteworthy 11.0% increase, reaching Dh129 billion in 2023 compared to Dh116.2 billion in 2022. Net loans and advances also grew substantially, increasing by 11.5% to Dh83.3 billion.
Customer deposits stood at Dh88.3 billion as of December 31, 2023, reflecting an 8.9% surge from Dh81.1 billion in 2022. Low-cost current and savings accounts (CASA) constituted 49.6% of the customer deposit base.