The Banking Executive Magazine - February 2022

Commercial Bank of Dubai Commercial Bank of Dubai POSTS 29% JUMP IN 2021 NET PROFIT AT $394.8MLN Commercial Bank of Dubai (CBD), which counts state-owned fund In- vestment Corporation of Dubai (ICD) as one of its shareholders, saw its net profit jump by nearly 30 percent in 2021 compared to a year earlier, driven by improved operating per- formance and lower expected credit losses. Total net profit for the year ended December 31, 2021 reached 1.451 billion dirhams ($394.8 million) up by 29.5 percent from the previous year, the Dubai-listed lender said in a disclosure. “The improved operating perform- ance, coupled with lower expected credit losses, have contributed to the increase in net profit,” the bank said in a statement. ASSETS, LOANS The lender’s assets for the full year climbed 17.3 percent to a record 114.2 billion dirhams on the back of strong growth loans. As of the end of 2021, total gross loans stood at 80.5 billion dirhams, registering a 16.5 percent growth compared to 2020, while customers’ deposits amounted to 82.7 billion dirhams, up by 18.6 percent year-on- year. Net impairment allowances fell 17.5 percent to 867 million dirhams, while net interest income went up by 10.1 percent, driven primarily by strong business growth and lower funding costs. Looking ahead, the bank said the economic outlook and business sen- timent for 2022 remains positive, so it expects “further performance im- provement” in the next 12 months. Listed on the Dubai Financial Market (DFM), CBD is majority owned by UAE nationals, including 20 percent by ICD. the BANKING EXECUTIVE 36 ISSUE 158 FEBRUARY 2022