TLDR:
• CBI’s profits surge in 2024
• Strong loan growth boosts profitability
• Capital strength drives financial resilience
DUBAI/RAS AL KHAIMAH (The Thursday Times) — Commercial Bank International (CBI) has reported a record net profit before tax of AED 254 million for the first nine months of 2024, reflecting an impressive 81 percent year-on-year growth. The bank’s remarkable financial performance underscores its successful transformation efforts and innovative approach to growth, positioning it as a key player in the UAE’s banking sector.
CBI’s results for Q3 2024 have been particularly noteworthy. The bank delivered a net operating income of AED 278.5 million, marking a substantial increase of 90 percent compared to the same period last year and 115 percent higher than Q2 2024. This surge in profitability has been attributed to several factors, including strong loan growth, improved liquidity, and a strategic focus on innovation and operational efficiency.
Loan growth drives performance
One of the key drivers behind CBI’s stellar performance has been the expansion of its loan portfolio. Loans and advances saw a robust 8 percent year-on-year increase, reaching AED 13 billion by the end of September 2024. This growth not only boosted the bank’s net operating income but also contributed to a stronger balance sheet, with total assets rising by 12 percent year-on-year to AED 21 billion.
The bank’s loan-to-deposit ratio, which improved significantly to 85 percent from 98 percent last year, indicates enhanced liquidity and a healthier funding base. This improvement in liquidity has enabled CBI to strengthen its position in the market and respond more effectively to customer needs.
Focus on financial resilience
CBI’s capital adequacy ratio, a key indicator of financial strength, also saw an improvement during the first nine months of 2024. The ratio rose to 15.8 percent as of September 2024, up from 14.7 percent in the previous year. This increase highlights the bank’s commitment to maintaining a solid capital base and ensuring long-term financial resilience in a competitive market environment.
In addition to its capital strength, CBI’s strategic focus on operational efficiency has enabled it to manage costs effectively, further supporting its profitability. This financial resilience, coupled with the bank’s innovative approach to product offerings, has solidified CBI’s position in the UAE’s banking sector.
Growth through transformation
CBI’s strong results reflect its successful transformation strategy, which has focused on modernising its operations, enhancing customer experience, and driving innovation. The bank’s digital transformation efforts have played a key role in attracting new customers and boosting its market share in an increasingly competitive sector.
Looking ahead, CBI is well-positioned to continue its upward trajectory, with a clear focus on sustainable growth and enhancing shareholder value. The bank’s management has expressed confidence in its ability to navigate the challenges of the evolving financial landscape while maintaining its commitment to innovation and customer-centric solutions.
