Commercial Bank Of Dubai Achieves AED 1.45 Billion Net Profit In First Half Of 2024

Commercial Bank of Dubai (CBD) has announced its financial results for the first half of 2024, reporting a net profit after tax of AED1.452 billion. This represents a 30.2 percent year-on-year increase on a pre-tax basis compared to the same period in 2023.

The bank attributed this growth to a significant increase in loans during the first six months of 2024, which led to robust net interest income. This was further bolstered by non-funded income and lower risk costs, which outweighed higher expenses and corporate tax charges.

High global market interest rates also played a crucial role in maintaining solid net interest income outcomes. The UAE's positive business activity, population growth, and business confidence are expected to continue supporting these trends.

Dr. Bernd van Linder, Chief Executive Officer, commented on the bank’s performance: "CBD has delivered a commendable result attributable to strong loan growth with higher revenues at outstanding returns and improved overall asset quality. Our net profit after tax for H1 2024 was a record AED1.452 billion, above the prior comparative period by 30.2 percent on a pre-tax basis, attributable to customer business activity and strong overall revenues."

He added that the bank remains focused on executing its strategy and is well-positioned to continue delivering high-quality performance for the rest of 2024 and beyond.

Operating Income and Profit Growth

Other notable highlights for CBD in the first half of 2024 include an increase in operating income to AED2.710 billion, marking a 10.1 percent year-on-year rise driven by net interest income, fees, and commissions. Operating profit also saw an uptick, reaching AED2.066 billion, up 9.8 percent year-on-year.

The UAE's public sector strategic intent, investment initiatives, and broad-based economic growth are anticipated to mitigate any potential future challenges from interest rate cuts.

The bank’s strong performance reflects its ability to adapt to changing market conditions while maintaining focus on strategic objectives.

This robust financial outcome underscores CBD’s commitment to delivering value through effective management of assets and liabilities.

With inputs from WAM