Commercial Bank of Dubai reports record net profit in third quarter results

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Commercial Bank of Dubai (CBD) released its financial results for the first nine months of 2023, as per state news agency WAM.

The CBD has delivered a record net profit of Dhs1.9bn for the first nine months of 2023, up 46.4 per cent compared to the corresponding period in 2022.

Outstanding revenue contribution across net interest and other operating income, backed by strong loan growth generated a significant rise in net profit.

Notably, market interest rates remained high, which contributed to the financial uplift.

UAE’s economic outlook contributes to strong growth for Commercial Bank

The UAE economic outlook and business confidence is strong, supported by resilient domestic activity that should enable economic growth through 2024.

Net interest income rose slightly to Dhs885m in the July to September 2023 period, while other operating income gained 7.3 percent year-on-year (YoY) to Dhs369m.

The lender’s net profit surged 46.4 per cent to  Dhs1.94bn in the first nine months of 2023, compared to Dhs1.32bn, driven by higher net interest and other operating income.

Interest rates remained high, which contributed to the financial uplift, added the report.

Total assets stood at Dhs126bn as of September 30, 2023, an increase of 7.2 per cent YoY.

Net loans and advances reached Dhs82.9bn, up 4.7 per cent YoY, while customer deposits stood at Dhs86.4bn, an increase of 5.7 per cent YoY in the first nine months of 2023.

On the other hand, capital ratios remained strong, with the capital adequacy ratio (CAR) at 16.80 per cent and the Tier 1 ratio at 15.65 per cent over regulatory requirements.

Dr Bernd van Linder, CEO of Commercial Bank of Dubai, said, “’We remain well positioned to deliver on our strategic goals and in achieving exceptional performance outcomes in 2023 and beyond.”

Also read: Mashreq bank’s net profit rises 122% in first 9 months of 2023