Commercial Bank Of Dubai Q1 Net Profit Hits Dh830 Million

(MENAFN- Khaleej Times) Commercial Bank of Dubai (CBD) on Wednesday announced that net profit after tax for the first quarter ended March 31, 2026 rose to Dh830 million, up 0.2 per cent year-on-year.

CBD recorded a net profit before tax of Dh912 million, an increase of 0.3 per cent compared to the prior comparative period. The bank sustained a strong return on equity (ROE) of 20.57 per cent after tax.

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CBD's Q1 2026 performance was underpinned by solid growth in loans, Casa balances and non-funded income, supported by robust business continuity frameworks, strong funding, liquidity and capital, operational excellence and prudent and proactive risk management practices.

The bank's operating income increased 6.2 per cent over Q1 2025 to Dh1.456 billion, attributed to an increase in net interest income by 2.4 per cent led by solid loan and current and savings accounts (Casa) growth, and 16.0 per cent growth in non-funded income.

Operating expenses were Dh392 million, up 5.8 per cent, as the bank continued to invest in digitisation, technology, business growth, governance and regulatory compliance. The cost-to-income ratio remained strong at 26.90 per cent, underlining disciplined operating efficiency as the Bank enhanced its capabilities and growth initiatives.

The Bank's total assets stood at Dh157.9 billion as of 31 March 2026, up 11.9 per cent from Dh141.1 billion at 31 March 2025. Gross loans and advances increased 4.1 per cent year-on-year to Dh106.4 billion, with net loans and advances rising 5.3 per cent to Dh102.1 billion.

Customer deposits grew 10.0 per cent year-on-year to Dh109.6 billion, with low-cost Casa balances comprising 51 per cent of total deposits. The loan-to-deposit ratio stood at 93.1 per cent, and the advances to stable resources ratio was 86.94 per cent, well within the UAE Central Bank regulatory ceiling.

CBD's asset quality further strengthened in the first quarter of 2026. The non-performing loan ratio declined to 3.55 per cent from 4.29 per cent at the end of Q1 2025 further highlighting the excellent asset quality. The Bank's capital position remained strong, with a Capital Adequacy Ratio (CAR) of 15.45 per cent, a Tier 1 ratio of 14.32 per cent and a Common Equity Tier 1 (CET1) ratio of 12.54 per cent, all well above minimum regulatory requirements.

Continued focus on transformation

CBD continued to accelerate its transformation agenda, leveraging digital technologies and partnerships to enhance customer experience across all segments. It was among the financial institutions to recognise AE Coin, a UAE Central Bank-licensed, fully reserved, UAE dirham-backed digital currency, as a payment method across all federal government entities.

CBD's strong credit profile was reaffirmed with Fitch Ratings affirming an A- rating with a 'Stable' outlook and Moody's maintaining a Baa1 rating with a 'Stable' outlook, reflecting its sound capitalisation, balanced funding mix and prudent risk management.

Dr. Bernd van Linder, Chief Executive Officer, CBD, said:“Our Q1 2026 results reflect our strength and resilience as we continue to deliver consistent value for our shareholders. We are focused on being customer-centric, driving digital transformation and empowering national talent. CBD will continue to deliver seamless, secure and personalised financial experiences, while contributing to the UAE's economic transformation and global ambition.”

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