Tecom embarks on its next phase of growth
Commercial Bank of Dubai (CBD) on Wednesday announced a record net profit of Dh2.65 billion for the year ended December 31, 2023, up 45.2 per cent year-on-year.
Outstanding revenue contribution across net interest and other operating income, backed by strong loan growth generated a significant rise in net profit. Notably, higher market interest rates contributed to the increase in revenue. “UAE business activity and business confidence remains positive, supported by strong domestic non-oil business activity, anticipated robust performance across all key economic sectors and further growth in the number of people and businesses migrating to the country,” the bank said in a statement.
Based on the profits, the bank proposed a cash dividend of 44.38 per cent.
Operating expenses were Dh1.228 billion, with the increase driven by investments in digitisation, business growth, risk management, regulatory compliance and governance. The cost-to-income ratio remains excellent at 24.87 per cent.
Operating profit stood at Dh3.71 billion, up by 31.8 per cent. Net impairment loss was Dh1.06 billion, up by 7.0 per cent.
As at 31 December 2023, capital ratios remained strong with the capital adequacy ratio (CAR) at 15.95 per cent, Tier 1 ratio at 14.81 per cent and Common Equity Tier 1 (CET1) ratio at 12.54 per cent
Gross loans were Dh88.9 billion, an increase of 11.6 per cent compared to 31 December 2022.
Advances to stable resources ratio (ASRR) stood at 87.25 per cent, an increase of 16 bps compared to 31 December 2022
Net interest income rose 33.4 per cent on higher interest rates, and growth in other operating income by 20.4 per cent.
Total assets were Dh129.0 billion as at 31 December 2023, an increase of 11.0 per cent compared to Dh116.2 billion as at 31 December 2022.
Net loans and advances were Dh83.3 billion, registering an increase of 11.5 per cent compared to Dh74.7 billion as at 31 December 2022.
Customers’ deposits were Dh88.3 billion as at 31 December 2023, representing an increase of 8.9 per cent compared to Dh81.1 billion as at 31 December 2022. Low-cost current and savings accounts (CASA) constitute 49.6 per cent of the total customer deposit base, while the financing-to-deposits ratio stood at 94.4 per cent.
Dr Bernd van Linder, chief executive officer, said: “CBD has accomplished an outstanding result attributable to excellent revenue growth and improved broad based business performance. We continue to remain focused on the disciplined execution of our strategy and remain well positioned to deliver on our strategic goals and in achieving exceptional performance outcomes in 2024 and beyond.”
Tecom embarks on its next phase of growth
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