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Commercial Bank of Dubai (CBD), which counts state-owned fund Investment Corporation of Dubai (ICD) as one of its shareholders, saw its net profit jump by nearly 30 percent in 2021 compared to a year earlier, driven by improved operating performance and lower expected credit losses.
Total net profit for the year ended December 31, 2021 reached 1.451 billion dirhams ($394.8 million) up by 29.5 percent from the previous year, the Dubai-listed lender said in a disclosure on Wednesday.
“The improved operating performance, coupled with lower expected credit losses, have contributed to the increase in net profit,” the bank said in a statement.
Assets, loans
The lender’s assets for the full year climbed 17.3 percent to a record 114.2 billion dirhams on the back of strong growth loans.
As of the end of 2021, total gross loans stood at 80.5 billion dirhams, registering a 16.5 percent growth compared to 2020, while customers’ deposits amounted to 82.7 billion dirhams, up by 18.6 percent year-on-year.
Net impairment allowances fell 17.5 percent to 867 million dirhams, while net interest income went up by 10.1 percent, driven primarily by strong business growth and lower funding costs.
Looking ahead, the bank said the economic outlook and business sentiment for 2022 remains positive, so it expects “further performance improvement” in the next 12 months.
Listed on the Dubai Financial Market (DFM), CBD is majority owned by UAE nationals, including 20 percent by ICD.
(Reporting by Cleofe Maceda; editing by Daniel Luiz )
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