Dubai: Commercial Bank of Dubai (CBD) today reported its financial results for the first six months of 2021.
Commercial Bank of Dubai has delivered a net profit of AED 676 million for the first half of 2021, up 27.5% against the first half of 2020. Improved operating performance coupled with lower expected credit losses have supported the growth in net profit. Despite the continuous decline in interbank interest rates, net interest income is up by 8.7% compared to H1 2020 primarily from lower funding costs and strong business growth. The increase in business activity was reflective of the economic recovery which positively impacted fees and commission income.
Commenting on the bank’s performance, Dr. Bernd van Linder, Chief Executive Officer said, “CBD has delivered an improved set of results with the bank’s net profit increasing by 27% compared to the first half of 2020. The ongoing COVID-19 pandemic has been managed admirably by the UAE, enabling the community and businesses to move forward positively and with confidence. Looking ahead, we remain hopeful that the pandemic situation continues to improve globally, enabling improved health and economic conditions for all.”
He added, “Against this backdrop, CBD has reached a record AED 113b in assets driven by strong growth in loans, which have increased 17% compared to H1 2020. Overall, our net profit was AED 676 million, above the prior comparative period on the back of improved net interest income, higher commission and fee income, and moderately lower expected credit losses.”
We remain committed to supporting personal, business and government customers across the UAE, providing seamless market leading banking experiences for all our customers.”
H1 2021 results:
- Net profit was AED 676 million, 27.5% above the prior comparative period
- Operating income was AED 1,572 million, up by 11.4% compared to the prior comparative period, primarily due to improved fee and commission income and higher net interest income
- Operating expenses were AED 409 million, up by 5.8%
- Operating profit was AED 1,163 million, up by 13.4%
- Net impairment allowances were AED 487 million, down 1.6%
As at 30th June 2021:
- Capital ratios remained strong with the capital adequacy ratio (CAR) at 15.69%, Tier 1 ratio at 14.52% and Common Equity Tier 1 (CET1) ratio at 12.04%.
- Gross loans were AED 78.3 billion, an increase of 13.4% compared to 31st December 2020
- Advances to stable resources ratio (ASRR) stood at 87.60%
Read the full report here.
The bank was incorporated in Dubai, United Arab Emirates in 1969 and is registered as a Public Shareholding Company (PSC).
The bank is listed on the Dubai Financial Market and is majority owned by UAE Nationals, including 20% by the Investment Corporation of Dubai (ICD). The bank employs over 1,300 staff and offers a wide range of conventional and Islamic banking products and services to its corporate, commercial and personal banking customers through a network of 14 branches. Moreover the bank has invested in an extensive network of 161 ATMs/CDMs.
For further information, kindly contact: CBD Investor Relations @ email@example.com
© Press Release 2021