Commercial Bank of Dubai (CBD) reported its financial results for the first nine months of 2021.
Commercial Bank of Dubai has delivered a net profit of AED 1,051 million for the nine months to 30 September 2021, up 28.8% year on year. The strong operating performance was primarily from higher asset volumes, lower funding costs and solid other operating income. The improving external environment, receding pandemic impacts and strengthening business confidence point to moderately improving business conditions.
Commenting on the bank’s performance, Dr. Bernd van Linder, Chief Executive Officer said, “CBD has delivered a solid performance with the bank’s net profit increasing by 29% compared to the first nine months of 2020. Local business conditions continue to improve assisted by Expo 2020 which is set to provide an amazing opportunity for us all to unite in a spirit of hope and collaboration, working to create a better future.”
He added, “CBD continues to deliver on its strategy and is poised to end the year on a strong footing as loans reached a record of AED 79b. With business conditions and confidence recovering, we remain positive looking ahead to 2022.
As we take the lead in providing the most innovative digital banking initiatives in the market, we are determined to continue setting the standard in digital banking excellence and seamless experiences for all our customers.”
Q3 2021 results:
- Net profit was AED 1,051 million, 28.8% above the prior comparative period
- Operating income was AED 2,388 million, up by 13.4% primarily due to higher net interest income and improved fee and commission income
- Operating expenses were AED 624 million, up by 5.5%
- Operating profit was AED 1,764 million, up by 16.4%
- Net impairment allowances were AED 713 million, up 1.9%
As at 30 September 2021:
- Capital ratios remained strong with the capital adequacy ratio (CAR) at 16.16%, Tier 1 ratio at 15.00% and Common Equity Tier 1 (CET1) ratio at 12.50%.
- Gross loans were AED 78.9 billion, an increase of 14.3% compared to 31 December 2020
- Advances to stable resources ratio (ASRR) stood at 93.10%