Gross loans were Dh88.9 billion, an increase of 11.6% compared to December 31, 2022. Image Credit: Supplied

Dubai: Commercial Bank of Dubai witnessed a notable 45.2 per cent profit surge, reaching Dh 2.65 billion, the bank announced on Wednesday. Following this, the Board of Directors have proposed a record cash dividend of 44.38 fils per share, marking a substantial 31.8 per cent increase.

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The bank’s operating income, totalling Dh4.9 billion, experienced a robust 28.5 per cent growth, attributed to an uptick in net interest income and an expansion in fee and commission income.

The total loans portfolio registered a significant 11.6 per cent increase from December 31, 2022, reaching Dh88.9 billion.

The bank has reported that a notable increase in net profit was attributed to exceptional revenue contributions from both net interest and other operating income bolstered by substantial loan growth. Higher market interest rates also influenced the uptick in revenue.

Non-oil business activity

The positive outlook for UAE business activity and confidence is also sustained by robust domestic non-oil business activity.

Commenting on the bank’s performance, 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.”

He added, “Overall, our net profit was Dh2.65 billion, well above the prior year on account of higher revenue and solid loan growth.”

Dr van Linder also said, “We remain focused on the disciplined execution of our strategy and remain well positioned to deliver on our strategic goals and achieve exceptional performance outcomes in 2024 and beyond.”

During 2023, CBD received numerous prestigious awards, including “Best Instant Payments Technology Implementation” and “Payments Innovation of the Year” at the MEA Finance Leaders in Payment Awards 2023.

CBD said it is also taking proactive measures to tackle climate change head-on. During the year, CBD issued its inaugural green bond, raising $500 million. “Our commitment to carbon neutral operations by 2030 signifies our dedication to a sustainable future,” he added.