Commercial Bank of Dubai Achieves AED1.452 billion Net Profit in H1 2024

Commercial Bank of Dubai (CBD) announced its financial results for the first six months of 2024 (H1 2024), reporting a net profit (after tax) of AED1.452 billion. This marks a 30.2 per cent year-on-year (YoY) increase on a pre-tax basis compared to the same period in 2023.

In a press release today, the bank attributed the strong profit growth to a solid net interest outcome driven by robust loan growth in the first half of 2024. This outcome was bolstered by non-funded income and a lower cost of risk, which more than compensated for higher expenses and the corporate tax charge. Additionally, high global market interest rates continued to impact net interest income positively. The UAE’s positive business activity, population growth, and business confidence are expected to sustain these favourable conditions. Furthermore, strategic public sector investments and broad-based economic growth are anticipated to mitigate any potential headwinds from future interest rate cuts.

Commenting on the Bank’s performance, Dr. Bernd van Linder, Chief Executive Officer, said,

CBD has delivered a commendable result attributable to strong loan growth with higher revenues at outstanding returns and improved overall asset quality. Our net profit after tax for H1 2024 was a record AED1.452 billion, above the prior comparative period by 30.2 per cent on a pre-tax basis, attributable to customer business activity and strong overall revenues. The Bank remains steadfastly focused on the execution of the Bank’s strategy and is well positioned to continue to deliver on our strategic objectives and high-quality performance for the remainder of 2024 and beyond.

Other notable achievements for CBD in the first half of the year include an increase in operating income to AED2.710 billion, up 10.1 per cent YoY. This growth was driven by net interest income, fees, and commissions. The operating profit also rose to AED 2.066 billion, reflecting a 9.8 per cent YoY increase.

These results underscore CBD’s strong financial health and its successful execution of strategic initiatives aimed at enhancing customer business activity and overall revenue growth. The bank’s commitment to maintaining high asset quality and operational efficiency positions it well for sustained performance in the second half of 2024 and beyond.

News Source: Emirates News Agency