Commercial Bank of Dubai posts 9.4% rise in Q3 net profit as lending expands and provisions fall

Commercial Bank of Dubai (CBD) recorded a net profit after tax of Dh969 million for the third quarter of 2026, a 9.4% increase from the preceding quarter, driven by stronger lending activity and a reduction in credit loss provisions.

Profit before tax for the three months ended 30 September 2026 climbed 9.2% to Dh1,063 million, while net interest income rose 9.7% quarter on quarter, the Dubai-based lender said in its latest financial statement.

Record nine-month earnings

For the first nine months of 2026, CBD posted a record net profit before tax of Dh2,948 million, up 4.1% compared with the same period last year. Return on equity after tax stood at 21.38%.

Operating income for the nine-month period edged up 0.9% to Dh4,440 million. Non-funded income grew 2.6%, supported by fee income, while net interest income increased 0.2% on the back of loan growth and a higher share of low-cost current and savings account (Casa) deposits.

Operating expenses rose 1.4% to Dh1,178 million, reflecting investment in digitisation, technology, business expansion, governance and regulatory compliance. The cost-to-income ratio stood at 26.53%.

Net impairment losses dropped 22.6% to Dh314 million, while corporate tax expense increased 4.2% to Dh264 million.

Dr Bernd van Linder, chief executive officer of CBD, said the results demonstrated “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 added. “We remain focused on executing our strategic priorities while investing in AI, innovation and digitisation.”

Balance sheet expansion

Total assets reached Dh167.9 billion at the end of September, up 4.7% from Dh160.3 billion at the close of 2025. Net loans and advances grew 8.5% to Dh109.6 billion, from Dh101 billion, and gross loans rose 7.7% to Dh113.5 billion.

Customer deposits increased 0.7% to Dh112.2 billion, from Dh111.4 billion. Casa deposits accounted for 50% of the deposit base, and the loan-to-deposit ratio stood at 97.75%.

Asset quality and capital strength

The non-performing loan (NPL) ratio improved by 52 basis points year on year to 2.98%. The coverage ratio rose 806 basis points over the same period to 106.99%, and stood at 153.14% for Stage 3 loans when collateral is included.

The bank’s capital adequacy ratio was 15.53%, its Tier 1 ratio 14.39% and its Common Equity Tier 1 ratio 12.71%. CBD said all ratios were well above the minimum thresholds set by the Central Bank of the UAE.

In July 2026, CBD issued a $600 million Additional Tier 1 perpetual bond with a six-year non-call period, which the lender said supports its long-term capital planning.