Commercial Bank of Dubai

1. Company Overview & Earnings Context

Commercial Bank of Dubai (CBD) delivered a strong H1 2026 performance despite an evolving operating environment, reporting record profitability supported by resilient business growth, disciplined execution, and diversified income generation. The Bank continued expanding its loan book beyond AED 104 billion while maintaining robust liquidity, capital, and funding positions. Strong customer relationships, prudent risk management, and continued investment in innovation and technology supported another solid reporting period.

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2. Financial Performance Snapshot

• Total operating income: AED 2.90B (+2.7% YoY)

• Net interest income & Islamic financing income: AED 2.00B (-0.6% YoY)

• Net fees & commission income: AED 636.0M (+6.4% YoY)

• Other operating income: AED 261.0M (+23.5% YoY)

• Operating profit: AED 2.13B (+2.5% YoY)

• Net impairment loss: AED 240.0M (+13.1% YoY)

• Profit before tax: AED 1.89B (+1.3% YoY)

• Income tax expense: AED 169.7M

• Net profit: AED 1.72B (+1.2% YoY)

• Earnings per share (EPS): AED 0.55 (unchanged YoY)

Compared with H1 2025:

• Total operating income increased from AED 2.82B to AED 2.90B.

• Operating profit increased from AED 2.07B to AED 2.13B.

• Profit before tax increased from AED 1.86B to AED 1.89B.

• Net profit increased from AED 1.70B to AED 1.72B.

• EPS remained stable at AED 0.55.

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3. Operational Highlights & Key Metrics

• Total assets: AED 154.5B

• Net loans & advances: AED 104.2B

• Gross loans & advances: AED 108.2B

• Customer deposits: AED 107.7B

• Total equity: AED 17.0B

• Cash & balances with Central Bank: AED 13.0B

• Investment securities: AED 18.8B

• Cost-to-income ratio: 26.7%

• Return on equity (ROE): 20.9%

• Return on assets (ROA): 2.2%

• Non-performing loan (NPL) ratio: 3.6%

• Provision coverage ratio: 96.5%

• Capital adequacy ratio (CAR): 14.1%

• CET1 ratio: 13.0%

• Loan-to-deposit ratio: 96.7%

• Advances to Stable Resources Ratio (ASRR): 91.3%

During the period, CBD also successfully issued a USD 600 million Additional Tier 1 (AT1) perpetual bond to further strengthen its long-term capital position.

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4. Key Performance Drivers

CBD's performance was driven by continued loan growth, higher fee and commission income, stronger non-funded income, and disciplined execution of its business strategy. While net interest income softened slightly due to the lower interest rate environment, growth in fees, commissions, and other operating income more than offset the decline. Continued investment in digitisation, technology, governance, and regulatory compliance supported long-term growth, although these investments contributed to a modest increase in operating expenses. Higher expected credit losses also weighed on earnings, reflecting prudent provisioning despite improving asset quality.

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5. Outlook & Forward Guidance

Management remains focused on supporting customer growth while continuing to invest in innovation, technology, and digital banking capabilities. The Bank will continue strengthening strategic partnerships, expanding its lending franchise, maintaining strong liquidity and capital positions, and supporting national initiatives including digital payments and financial infrastructure transformation. Management believes CBD's disciplined execution, diversified income streams, and resilient balance sheet position the Bank well for sustainable long-term growth.

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6. Investor Takeaway

Commercial Bank of Dubai delivered another strong set of H1 2026 results, demonstrating the resilience of its business model despite a changing interest rate environment. Continued loan growth, expanding non-funded income, strong profitability, and excellent returns on equity were supported by disciplined risk management and a well-capitalised balance sheet. With ongoing investments in digital transformation, strategic partnerships, and customer growth, CBD remains well positioned to deliver sustainable long-term value for shareholders.