Commercial Bank of Dubai reports Dh701 million net profit after tax for Q1 2024

The Commercial Bank of Dubai headquarters.Total assets were Dh131.0 billion as at 31 March 2024, an increase of 1.5%. — Supplied photo

Commercial Bank of Dubai (CBD) on Wednesday reported a net profit after tax result of Dh701 million for the first quarter of 2024, up 21.9 per cent (on a pre-tax basis, the result is up 33.9 per cent) compared to the corresponding period in 2023.

Strong growth in loans and current and savings accounts (CASA) underpinned a strong net interest outcome, which was supported by non-funded income that more than offset the corporate tax charge. High global market interest rates continued to contribute to the solid net interest income outcome. UAE business activity and business confidence remained strong and are forecast to continue to be positive across most industry sectors in the periods ahead.

Commenting on the Bank’s performance, Dr Bernd van Linder, chief executive officer, said, “CBD has delivered an excellent result attributable to strong loan and CASA growth and higher revenue at outstanding returns. Our net profit after tax for Q1 2024 was Dh701 million, above the prior comparative period on account of customer business activity and strong net interest income. We remain focused on the execution of the Bank’s long-term strategy and we are well positioned to deliver on our strategic objectives and financial targets in 2024 and beyond.”

Total assets were Dh131.0 billion as at 31 March 2024, an increase of 1.5 per cent compared to Dh129.0 billion as at 31 December 2023.

Net loans and advances were Dh86.8 billion, registering an increase of 4.2 per cent compared to Dh83.3 billion as at 31 December 2023.

Customers’ deposits were Dh90.3 billion as at 31 March 2024, representing an increase of 2.3 per cent compared to Dh88.3 billion as at 31 December 2023. Low-cost CASA constitute 52.4 per cent of the total customer deposit base, while the loan-to-deposit ratio stood at 96.1 per cent.

CBD says continues to drive digital transformation in banking products and services to ensure we are offering cutting-edge solutions to deliver outstanding high quality seamless customer experiences that cater to their changing needs.

CBD continues to make progress in its commitment to achieving carbon neutrality in the bank’s operations’ greenhouse gas emissions by 2030 and remains committed to supporting the UAE Net Zero by 2050 strategic initiative to transition towards a climate-neutral economy. The Bank reaffirmed its commitment to a sustainable future by signing a Memorandum of Understanding with Visa on sustainability initiatives with the ultimate objective to provide enhanced sustainability, and specifically carbon, awareness, engagement and offsetting. “The Bank plans to extend our sustainable finance capabilities further in 2024 and aims to become a key player in enabling the required flow of sustainable finance, further empowering our customers in contributing to a sustainable future for themselves and generations to come,” Dr van Linder said.