The Commercial Bank of Dubai (CBD) has reported a whopping Dh1.32 billion in profits for the year-to-end September phase. CBD becomes the most recent bank in the UAE to join the Dh1 billion plus profit club after registering an impressive 25.8 percent increase from the same period last year.
Commercial Bank of Dubai CEO Dr. Bernd Van Linder commented on the solid performance of the bank as a result attributable to the strong revenue and improved business performance of the whole team. “Overall the net profit was well above the prior comparative period on higher net interest income and overall increased business activity. CBD continues to make substantial progress on its long-term goals and is advancing on its strategic priorities.”
He added that “We anticipate a healthy 2023 domestic business environment.”
In a statement released recently, the bank said that the operating income generated a significant increase in net profit. The growth of lending (loans) combined with the consistently rising market interest rates has helped achieve their solid financial performance for the first 9 months of 2022.
Commercial Bank Of Dubai Reports Dh1.32b Profit
The UAE economy in general seems to be very resilient and continuing to perform strongly amidst the challenging global macro-economic environment.
CEO Van Linder believes that digital transformation and innovation were crucial for their success. He ensured their customers with high-quality seamless banking experience and help achieve their financial aspirations through the development of innovative banking solutions and by investing in state-of-the-art technology.
According to the recently published financial statements, Total income for the period amounted to Dh2.72 Billion which shows a 13.9 percent increase from the previous period. In the third quarter, it was Dh986 million, which was higher by 12.7 percent.
Impairment allowances for the period January to September were found to have been brought down on the balance sheet to Dh668 million, which is a 6.3 percent drop.
The total expenses of the banking firm were Dh730 million which is an increase of 17 percent.
The operating income (net interest, fees, commissions) for the period rose 13.9 percent and amounted to Dh2.72 billion.
Operating expenses totaled Dh730 million, which marks an increase of 17 percent.
The operating profit of the firm was Dh1.99 billion, up by 12.8 percent from the previous period as the net impairment allowances declined to Dh668 million (6.3 percent) as mentioned above.
The Commercial Bank of Dubai is the 7th largest bank in the UAE, as listed by Gulf Business, based on total assets. It is headquartered in Deira, where it was founded by an Amiri Decree issued by Sheikh Rashid Bin Saeed Al Maktoum in 1969.
CBD started out as a joint venture of Commerzbank, Chase Manhattan Bank, and Commercial Bank of Kuwait, and by 1982, evolved into a Public shareholding company.
It is the first bank to host its Annual General Meeting at Expo 2020, which reflects the bank’s commitment to supporting the United Arab Emirates and all its initiatives.