Net profits of CBD increase by 18.5% in the first half of 2024
Dubai – Mubasher: The Commercial Bank of Dubai (CBD) has reported a significant 18.50% increase in net profit after tax to AED 1.45 billion during the first half (H1) of 2024, compared to AED 1.22 billion in H1-23. This surge in profitability is a testament to the bank’s strong performance and strategic initiatives in a challenging economic environment.
Total operating income also saw a healthy growth of 10.10% year-on-year (YoY) to AED 2.71 billion in H1-24 from AED 2.46 billion in the same period last year. This indicates the bank’s ability to generate sustainable revenue streams and effectively manage its operations.
In the first six months of 2024, the basic and diluted earnings per share (EPS) increased to AED 0.46 from AED 0.39 in H1-23. This growth in EPS reflects the bank’s efficient capital allocation and solid financial performance.
CBD’s total assets reached AED 141.3 billion as of 30 June 2024, showing an impressive increase of 9.50% compared to AED 129 billion at the end of December 2023. Additionally, the customers’ deposits surged by 13.10% to AED 99.80 billion from AED 88.30 billion, indicating high levels of customer trust and confidence in the bank’s services.
Looking at the financials for the second quarter (Q2) of 2024, CBD reported net profits of AED 751.46 million, marking a substantial annual increase from AED 650.26 million. The basic and diluted EPS also improved to AED 0.23 in Q2-24 from AED 0.20 in the same period last year, showcasing the bank’s ability to enhance shareholder value.
Total income for Q2-24 widened to AED 1.33 billion from AED 1.22 billion in the previous year, highlighting CBD’s focus on driving revenue growth and profitability. On a quarterly basis, the net profits for Q2-24 increased by 7.10% from AED 701 million in Q1-24, while total operating income saw a slight decline of 2.50% from AED 1.37 billion.
Bernd van Linder, CEO of CBD, expressed his satisfaction with the bank’s performance, stating: “Our net profit after tax for H1-24 was a record AED 1.45 billion, above the prior comparative period by 30.20% on a pre-tax basis, attributable to customer business activity and strong overall revenues.” This reflects the bank’s commitment to delivering value to its stakeholders and customers.
He also mentioned the recognition of the 0 million Green Bond issuance by CBD in June 2024, which was awarded the Best Financial Institution Green Bond in EMEA at the EMEA Finance Achievement Awards 2023. This accolade underscores CBD’s leadership in sustainable finance and commitment to environmental initiatives.
In conclusion, the Commercial Bank of Dubai’s strong financial performance in the first half of 2024 reflects its resilience and strategic focus on driving growth and profitability. With a solid asset base, growing customer deposits, and innovative initiatives like the Green Bond issuance, CBD is well-positioned to navigate the challenges of the financial landscape and continue to deliver value to its shareholders and customers.
