Commercial Bank of Dubai posts 28.1% jump in H1 profit

Commercial Bank of Dubai (CBD) reported on Wednesday a net profit jump of 28.1 per cent to Dh866 million for the first half of 2022 compared to the same 2021 period.

The bank said in a statement that higher revenue across net interest and other operating income generated a strong increase in net profit.

“Notably, market interest rates have risen, and coupled with solid loan growth resulted in higher revenue in the first half. While the global macro-economic environment is challenging, on balance, the outlook for the UAE economy remains positive.”

Dr Bernd van Linder, chief executive officer, said CBD has delivered “a strong result attributable to a high quality and well balanced business performance.”

The net profit was well above H1 2021 on higher net interest income and overall improved business performance, he said.

“CBD has made significant progress on its long-term goals and is tracking well on its strategic priorities.”

The bank’s operating income increased b10.3 per cent to Dh 1.734 billion, driven by net interest income, fees and commissions. Operating profit was Dh1.259 billion, up by 8.3 per cent comparable to H1 2021. Net impairment allowances were Dh393 million, down 19.3 per cent.

Capital ratios remained strong with the capital adequacy ratio (CAR) at 15.43 per cent, Tier 1 ratio at 14.28 per cent and Common Equity Tier 1 (CET1) ratio at 11.88 per cent, the statement said.

Operating income rose10.3 per cent to Dh1.734 billion for the first half of 2022 as a result of net interest income growth by 12.2 per cent on higher interest rates and volumes, and growth in other operating income, the statement said.

“Our recent accolade from Forbes Middle East, where we were named the number one bank in the UAE on the list of the World’s Best Banks, was an inspiring achievement. It has been pleasing to witness continued recognition throughout 2022 where CBD has been the recipient of various industry awards,” said van Linder.

He said digital transformation and innovation are fundamental to the bank’s ongoing success and the bank will continue to significantly invest in these areas to ensure it provides customers with a convenient and seamless banking experience.

— issacjohn@khaleejtimes.com