The Commercial Bank of Dubai (CBD) recently reported its financial results for the first nine months of 2024, marking a 26.5 percent rise in net profit pre-tax and a 15.2 percent rise post-tax to AED2.231 billion ($607 million) compared to the corresponding period in 2023.
The bank reported strong growth in loans during the first nine months of 2024 resulting in a solid net interest outcome. In addition, non-funded income and lower cost of risk more than offset higher expenses and the corporate tax charge. High global market interest rates during the first nine months of 2024 also contributed to the solid net interest income outcome.
Commenting on the bank’s performance, Dr. Bernd van Linder, CEO, said: “The Commercial Bank of Dubai has delivered an excellent result attributable to strong loan growth with higher revenues at outstanding returns and with significantly improved asset quality.”
Key achievements
In Q3 2024, the Commercial Bank of Dubai launched accounts for virtual asset service providers (VASPs). The introduction of banking services for VASPs aligns with the bank’s strategic vision to support the digital economy and foster a robust regulatory environment that promotes growth and stability.
Additionally, in October 2024, the Commercial Bank of Dubai issued $500 million Regulation S registered 5-year senior unsecured bonds under the bank’s EMTN program. This successful issuance highlights the strong brand value and market recognition.
Furthermore, the bank was recognized by the Dubai Chamber of Commerce as one of 27 companies leading the way in the adoption of sustainable business and awarded its environment, social and governance (ESG) label, which demonstrates the enduring resolve of the bank in this key area.
Read: Abu Dhabi Commercial Bank announces H1 2024 net profit after tax of $1.2 billion
Operating income rises 12.1 percent
During the first nine months of 2024, the Commercial Bank of Dubai reported a 12.1 percent rise in operating income to AED4.164 billion. It attributed this expansion to net interest income, fees, and commissions. Meanwhile, operating expenses rose 15.6 percent year-on-year to AED1.018 billion and operating profit rose 11 percent to AED3.147 billion.
The bank’s net impairment loss declined 22.5 percent to AED697 million while its corporate tax expense reached AED219 million.
As of September 30, 2024, the Commercial Bank of Dubai’s capital ratios remained strong with the capital adequacy ratio (CAR) at 16.56 percent, Tier 1 ratio at 15.42 percent, and common equity tier 1 (CET1) ratio at 13.37 percent, well in excess of regulatory requirements.
Gross loans rose 9.5 percent to AED97.3 billion while the advances to stable resources ratio (ASRR) stood at 86 percent, rising 125 bps compared to December 31, 2023.
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