Commercial Bank of Dubai's net profit rises to $286mln

Earnings increase on the back of higher asset volumes, lower funding costs

  
A man cleans the windows of a branch of Commercial Bank of Dubai on Baniyas Road in Dubai

A man cleans the windows of a branch of Commercial Bank of Dubai on Baniyas Road in Dubai

REUTERS/Nikhil Monteiro

UAE lender Commercial Bank of Dubai (CBD) reported a strong financial performance for the first nine months of the year, supported by improving business conditions. 

The bank’s net profit for the first nine months of the year reached 1.051 billion dirhams ($286 million), up by 28.8 percent year on year. 

“The strong operating performance was primarily from higher asset volumes, lower funding costs and solid other operating income,” the bank said in statement on Wednesday. 

“The improving external environment, receding pandemic impacts and strengthening business confidence point to moderately improving business conditions,” added the bank, which is listed on the Dubai Financial Market (DFM).

The lender’s operating income stood at 2.3 billion dirhams, up by 13.4 percent, primarily due to higher net interest income and improved fee and commission income.  

Operating expenses were up by 5.5 percent to 624 million dirhams, while operating profit jumped by 16.4 percent to 1.764 billion dirhams. 

As of September 30, 2021, the bank’s total assets amounted to 107.8 billion dirhams, up by 16.2 percent from the same period last year. 

(Writing by Cleofe Maceda; editing by Seban Scaria) 

Cleofe.maceda@refinitiv.com 

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© ZAWYA 2021

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