22/10/2026 05:06 AST
Commercial Bank of Dubai (CBD) reported a net profit after tax of Dh969 million for the third quarter of 2026, up 9.4 per cent from the previous quarter, as stronger lending and lower provisions lifted earnings.
Net profit before tax for the quarter rose 9.2 per cent to Dh1,063 million, while net interest income climbed 9.7 per cent quarter on quarter, the bank said in its results for the period ended September 30, 2026.
For the first nine months of the year, CBD posted a record net profit before tax of Dh2,948 million, up 4.1 per cent from the same period last year. Return on equity stood at 21.38 per cent after tax.
Operating income for the nine months rose 0.9 per cent to Dh4,440 million. Non-funded income grew 2.6 per cent, supported by fee income, while net interest income edged up 0.2 per cent on growth in loans and low-cost current and savings account (Casa) deposits.
Operating expenses increased 1.4 per cent to Dh1,178 million, driven by investment in digitisation, technology, business growth, governance and regulatory compliance. The cost-to-income ratio was 26.53 per cent.
Net impairment losses fell 22.6 per cent to Dh314 million, while corporate tax expense rose 4.2 per cent to Dh264 million.
Dr Bernd van Linder, COE of CBD, said the results showed "the strength of our franchise and the depth of our customer relationships".
"We continued to grow our lending portfolio and support customers across the UAE, while maintaining a disciplined approach to risk management," he said. "We remain focused on executing our strategic priorities while investing in AI, innovation and digitisation."
Balance sheet
Total assets reached Dh167.9 billion at the end of September, up 4.7 per cent from Dh160.3 billion at the end of 2025. Net loans and advances grew 8.5 per cent to Dh109.6 billion, from Dh101 billion. Gross loans rose 7.7 per cent to Dh113.5 billion.
Customer deposits edged up 0.7 per cent to Dh 112.2 billion, from Dh 111.4 billion. Casa deposits made up 50 per cent of the deposit base, and the loan-to-deposit ratio was 97.75 per cent.
The non-performing loan ratio improved by 52 basis points from a year earlier to 2.98 per cent. The coverage ratio rose 806 basis points over the same period to 106.99 per cent, and stood at 153.14 per cent for Stage 3 loans when collateral is included.
The bank's capital adequacy ratio was 15.53 per cent, its Tier 1 ratio 14.39 per cent and its Common Equity Tier 1 ratio 12.71 per cent. CBD said all were well above the minimum thresholds set by the Central Bank of the UAE.
In July, CBD issued a $600 million Additional Tier 1 perpetual bond with a six-year non-call period, which the bank said supports its long-term capital planning.
Khaleej Times
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