Commercial Bank of Dubai’s 2021 net profit up 29.5%

Dubai: Commercial Bank of Dubai (CBD) has reported a net profit of Dh1.45 billion for the year 2021, up 29.5 per cent year-on-year.

The improved operating performance coupled with lower expected credit losses have contributed to the increase in net profit. Despite lower interbank interest rates, net interest income is up by 10.1 per cent compared to 2020 primarily from strong business growth and lower funding costs.

“CBD has reached a record Dh114 billion in assets driven by strong growth in loans which have increased 17 per cent compared to 2020. Overall, our net profit was Dh 1.45 billion, above the prior year by 29.5 per cent on the back of improved net interest income, stable non funded income and lower expected credit losses,” said Dr. Bernd van Linder, Chief Executive Officer of CBD.

Operating income for the full year of 2021 amounted to Dh3.18 billion, an increase of 6.9 per cent, attributable to higher Net Interest Income (NII). Operating expenses were Dh865 million, up 7.2 per cent compared to the full year of 2020. The cost-to-income ratio remains outstanding at 27.18 per cent.

Total assets were Dh114.2 billion as at December 31 2021, an increase of 17.3 per cent compared to Dh97.4 billion as at 31 December 2020. Net loans and advances were Dh76.4 billion, registering an increase of 17.1d per cent compared to Dh65.3 billion as at 31 December 2020.

Customers’ deposits were Dh82.7 billion as at 31 December 2021, representing an increase of 18.6 per cent compared to Dh69.8 billion as at 31 December 2020.

The non-performing loan (NPL) ratio increased to 6.95 per cent, up from 6.77 per cent.

The bank’s liquidity position remained robust with the advances to stable resources ratio at 88.00% as at 31 December 2021. CBD’s capital ratios remained strong with the capital adequacy ratio (CAR) at 15.82 per cent, Tier 1 ratio at 14.66 per cent and Common Equity Tier 1 (CET1) ratio 12.13 per cent.