Net Profit of Commercial Bank of Dubai Increases by 18.1% in Q1

The Commercial Bank of Dubai (CBD) announced a net profit of Dh828 million for the first quarter of 2025, marking an 18.1 percent increase compared to the same period last year. This impressive growth in loans and current account and savings account (CASA) balances contributed to a strong net interest income, which was aided by a reduced cost of risk that offset declines in non-funded income and rising expenses.

The UAE’s economy continues to thrive, bolstered by active business activity and government policies aimed at attracting investment and fostering an innovation-driven economy. Ongoing initiatives in technology, renewable energy, and entrepreneurship are propelling innovative progress. Business confidence remains high, with expectations of economic growth persisting throughout 2025 and beyond. Strategic frameworks like the “We are UAE 2031” initiative and the “Dubai Economic Agenda (D33)” are designed to cultivate a dynamic and competitive economy, emphasizing diversification in key growth sectors while enhancing the UAE’s role in the digital economy.

Operating income reached Dh1.371 billion, supported by substantial growth in both loans and CASA balances. Operating expenses rose to Dh370 million, reflecting a 17.5 percent increase. Meanwhile, operating profit fell to Dh1.001 billion, down 5.3 percent. The net impairment loss dropped significantly to Dh91 million, down 68.3 percent, while the corporate tax expense increased to Dh82 million, up by 18.8 percent.

The bank’s capital ratios continue to be robust, with the capital adequacy ratio (CAR) at 15.31 percent, the Tier 1 ratio at 14.18 percent, and the Common Equity Tier 1 (CET1) ratio at 12.28 percent—all comfortably above regulatory standards. Total gross loans amounted to Dh102.1 billion, reflecting a 3.9 percent increase since December 31, 2024. The advances to stable resources ratio (ASRR) stood at 89.60 percent, up by 302 basis points from the end of 2024.

Commenting on the results, Dr. Bernd van Linder, Chief Executive Officer, stated: “The bank remains deeply committed to the disciplined execution of its strategy and is positioned to meet its strategic goals while achieving strong financial performance in 2025 and beyond.”

Business

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