Commercial Bank of Dubai posts net profit of Dh1.46 billion in first six months of 2024
Operating income for H1 2024 was Dh2.71 billion
Commercial Bank of Dubai (CBD), on Wednesday, posted a first-half net profit after tax of Dh1.46 billion, an 18.5 per cent increase compared to the same period in 2023, said the Dubai-based bank.
According to a statement from CBD, the growth was driven by better loan growth, net interest income, non-funded income, and lower risk cost, offsetting higher expenses and corporate tax charges. High global market interest rates contributed to the substantial net interest income.
Dr Bernd van Linder, CEO of CBD, said, “CBD’s strong performance is due to robust loan growth and higher revenues. Our net profit after tax for H1 2024 was a record Dh1.46 billion, up 30.2 per cent on a pre-tax basis from the prior year. The bank remains focused on executing our strategy and is well-positioned to continue delivering strong results for the remainder of 2024 and beyond.”
“UAE business activity, population growth and business confidence remained positive and are forecast to continue to remain supportive in the periods ahead. Public sector strategic intent, investment and broad-based economic growth is expected to offset any future headwinds from interest rate cuts,” the lender said.
Operating income for H1 2024 was Dh2.71 billion, up 10.1 per cent, attributable to an increase in Net Interest Income (NII) by 7.8 per cent on strong loan growth during the first half of 2024. Meanwhile, net loans and advances totalled h89.6 billion, rising 7.6 per cent compared to Dh83.3 billion on December 31, 2023.
At the end of the first six months of the year, customers' deposits were Dh99.8 billion, an increase of 13.1 per cent compared to Dh88.3 billion at the end of 2023. Also, the non-performing loan (NPL) ratio decreased markedly to 5.56 per cent, down from 6.46 per cent at the end of 2023.