The bank’s operating expenses were recorded at Dh580 million. Image Credit: Supplied

Dubai: Commercial Bank of Dubai (CBD) reported a record net profit of Dh1.225 billion for the first half of 2023, up 41.5 per cent compared to the corresponding period in 2022, the bank said on Wednesday.

Operating income for the first half was Dh2.461 billion, up 41.9 per cent, attributable to an increase in net interest income by 56 per cent on higher interest rates, and growth in other operating income by 15.3 per cent from improved business activities.

The bank’s operating expenses were recorded at Dh580 million, with the increase driven by inflation and ongoing investments in digitisation, technology, business growth, governance and regulatory compliance.

Operating profit was reported at Dh1.882 billion, up 49.5 per cent.

“CBD has delivered an outstanding result attributable to strong revenue growth at excellent returns. We remain well positioned in meeting our long term goals and deliver superior performance outcomes in 2023 and beyond,” CEO Dr. Bernd van Linder said.

“We continue to actively support the digital transformation programmes across the UAE, including the CBUAE FIT programme, and as a leading UAE Bank, we will continue to be a central participant in these programmes, supporting our customers and the broader UAE economy.”

The lender’s capital ratios remained strong with the capital adequacy ratio (CAR) at 16.43 per cent, Tier 1 ratio at 15.27 per cent and Common Equity Tier 1 (CET1) ratio at 12.92 per cent, well in excess of regulatory requirements.

Gross loans were Dh86.4 billion, an increase of 8.5 per cent compared to December 31, 2022, while net loans and advances clocked Dh80.8 billion, up 2.4 per cent compared to Dh78.9 billion as on June 30, 2022.

Total assets stood at Dh123.1 billion as on June 30, 2023, an increase of 4.8 per cent compared to Dh117.5 billion in the year-ago period.

Customers’ deposits stood at Dh85.7 billion as on June 30, an increase of 1.1 per cent compared to Dh84.8 billion on June 30 last year.