Dubai: Commercial Bank of Dubai (CBD) reported a record net profit of Dh1.825 billion for the year ended December 31, 2022, up 25.8 per cent year-on-year.
Stronger revenue across net interest and other operating income generated a significant increase in net profit, the lender said.
“Notably, market interest rates have risen sharply, which contributed to the solid financial performance for the year. The UAE economic outlook and business confidence remain positive, supported by strong domestic activity and anticipated performance across all key economic sectors,” the bank said in a statement.
Owing to the strong performance, the bank’s board has proposed a record cash dividend of 26.05 per cent and bonus shares of 6.51 per cent.
Operating income was Dh3.812 billion, up 19.8 per cent due to higher net interest income and improved fee and commission income. Operating expenses stood at Dh997 million, up by 15.2 per cent, while operating profit was Dh2.816 billion, up by 21.5 per cent.
CBD CEO Dr. Bernd van Linder said: “CBD has accomplished a strong result attributable to robust revenue growth and improved business performance. Overall, our net profit was Dh1,825 million, well above the prior year on account of higher net interest income and a solid operating performance. We continue to remain focused on the disciplined execution of our strategy to back sequential growth in earnings and shareholder returns in the periods ahead.”
“Digital transformation and innovation in banking services are instrumental in our ongoing success, and we will continue to drive digital leadership and develop innovative banking solutions to ensure we provide our customers with a high-quality seamless banking experience.”
Gross loans were recorded at Dh79.6 billion, a decrease of 1.1 per cent compared to December 31, 2021.
Total assets stood at Dh116.1 billion as at December 31, 2022, an increase of 1.6 per cent compared to Dh114.2 billion in the year-ago period.
Customers’ deposits were Dh81.1 billion as at December 31, 2022, representing a decrease of 2 per cent compared to Dh82.7 billion in the year-ago period.
