Announcing its financial results for the first six months of 2024 (H1 2024), Commercial Bank of Dubai (CBD) said it has delivered a net profit (after tax) of AED1.452 billion ($395 million), up 30.2% year-on-year (YoY) on a pre-tax basis compared to the corresponding period in 2023, a report said.

The bank said that the strong growth in its loans during the first half of 2024 resulted in a solid net interest outcome, which was supported by non-funded income and lower cost of risk that more than offset higher expenses and the corporate tax charge, Emirates News Agency, WAM, said.

High global market interest rates continued to contribute to the solid net interest income outcome. UAE business activity, population growth and business confidence remained positive and are forecast to continue to remain supportive in the periods ahead.

Public sector strategic intent, investment and broad-based economic growth are expected to offset any future headwinds from interest rate cuts.

Dr Bernd van Linder, Chief Executive Officer, said: “CBD has delivered a commendable result attributable to strong loan growth with higher revenues at outstanding returns and improved overall asset quality.

“Our net profit after tax for H1 2024 was a record AED1.452 billion, above the prior comparative period by 30.2% on a pre-tax basis, attributable to customer business activity and strong overall revenues.

“The bank remains steadfastly focused on the execution of the Bank’s strategy and is well positioned to continue to deliver on our strategic objectives and high-quality performance for the remainder of 2024 and beyond."

Other CBD highlights for the first half of the year include an increase in operating income to AED2.710 billion, up 10.1% YoY driven by net interest income, fees and commissions, while operating profit settled at AED2.066 billion, up 9.8% YoY.