The Banking Executive Magazine - July 2022 Issue

Commercial Bank of Dubai Commercial Bank of Dubai POSTS 28.1% JUMP IN H1 PROFIT Commercial Bank of Dubai (CBD) reported a net profit jump of 28.1 per cent to Dh866 million for the first half of 2022 compared to the same 2021 period. The bank said in a statement that higher revenue across net interest and other operating income gener- ated a strong increase in net profit. “Notably, market interest rates have risen, and coupled with solid loan growth resulted in higher revenue in the first half. While the global macro- economic environment is challeng- ing, on balance, the outlook for the UAE economy remains positive.” Dr. Bernd van Linder, chief executive officer, said CBD has delivered “a strong result attributable to a high quality and well balanced business performance.” The net profit was well above H1 2021 on higher net interest income and overall improved business per- formance, he said. “CBD has made significant progress on its long-term goals and is tracking well on its strategic priorities.” The bank’s operating income in- creased b10.3 per cent to Dh 1.734 billion, driven by net interest in- come, fees and commissions. Oper- ating profit was Dh1.259 billion, up by 8.3 per cent comparable to H1 2021. Net impairment allowances were Dh393 million, down 19.3 per cent. Capital ratios remained strong with the capital adequacy ratio (CAR) at 15.43 per cent, Tier 1 ratio at 14.28 per cent and Common Equity Tier 1 (CET1) ratio at 11.88 per cent, the statement said. Operating income rose10.3 per cent to Dh1.734 billion for the first half of 2022 as a result of net interest in- come growth by 12.2 per cent on higher interest rates and volumes, and growth in other operating in- come, the statement said. “Our recent accolade from Forbes Middle East, where we were named the number one bank in the UAE on the list of the World’s Best Banks, was an inspiring achievement. It has been pleasing to witness continued recognition throughout 2022 where CBD has been the recipient of vari- ous industry awards,” said van Lin- der. He said digital transformation and in- novation are fundamental to the bank’s ongoing success and the bank will continue to significantly invest in these areas to ensure it provides customers with a convenient and seamless banking experience. cation strategy, international pres- ence, strong financial position alongside our unique talent and organizational culture, are key dif- ferentiators in supporting the Bank to meet its objectives and maxi- mize shareholder returns.” “NBK’s Board of Directors has ap- proved the distribution of semi- annual dividends. This demonstrates NBK’s solid capital adequacy, confidence in its finan- cial position and its ability to gen- erate profits”,Al-Sager stated. Al Sager also stated: “The Group continues to focus on embedding sustainable practices within its op- erations. We are working tirelessly and across all our network of sub- sidiaries and branches to lower our operational GHG emissions and promote more sustainable practices. During the second quarter, we announced our plan to accelerate our efforts of transi- tioning our branches in Kuwait to become more environment friendly and increasing its de- pendence on renewable energy. This comes in line with our an- nounced targets to reduce our op- erational emissions by 25% by 2025 and taking a more active role in global efforts of transition- ing to a low carbon economy.” “We take pride in the progress of the ranking that the Bank achieved in The Banker’s ‘Top 1000 World Banks’ and in remain- ing Kuwait’s pioneer; a further en- dorsement to the trust in our brand position. Likewise, Weyay, Kuwait’s first digital bank, re- ceived ‘Outstanding Innovation in Mobile Banking’ award in Global Finance’s annual Innovators Awards for 2022; testifying the prominent role of our digital in- vestment in being growth streams in the short-to-medium term,”Al- Sager asserted ISSUE 163 JULY 2022 the BANKING EXECUTIVE 47