22/01/2026 08:25 AST
Commercial Bank of Dubai (CBD) reported record financial results for the year ended 31 December 2025, posting net profit before tax of AED 3.84 billion, up 15.6% from the previous year, as net loans exceeded AED 100 billion for the first time.
Net profit after tax rose 15.5% year on year to AED 3.5 billion. The bank also reported net profit before tax of AED 1 billion in the fourth quarter of 2025. CBD said the results extended its run of quarterly profit growth to 22 consecutive quarters.
Operating income rises
Operating income increased 7.8% in 2025 to AED 5.92 billion, supported by sustained lending momentum and higher customer activity.
Net interest income rose 9.3%, driven by growth in loans and current and savings account balances, while non-funded income increased 4.5%.
Operating expenses climbed 10.8% to AED 1.55 billion, reflecting continued investment in digital platforms, technology, governance and regulatory compliance.
The cost-to-income ratio stood at 26.25%, placing CBD among the lower-cost banks in the UAE sector.
Double-digit growth
Total assets increased 14.4% year on year to AED 160.3 billion at the end of December. Gross loans and advances rose 7.2% to AED 105.4 billion, while net loans increased 8.6% to AED 101 billion.
Customer deposits grew 14.1% to AED 111.4 billion, with current and savings accounts accounting for 49% of total deposits. The loan-to-deposit ratio improved to 90.75%, while the advances-to-stable-resources ratio stood at 83.14%, remaining below the UAE Central Bank's regulatory ceiling.
Credit quality improves
CBD said asset quality continued to strengthen, with the non-performing loan ratio falling to 3.58% from 4.35% a year earlier. Cost of risk declined to 0.49%, down 25 basis points year on year.
The bank's capital adequacy ratio was 15.52%, with a Tier 1 ratio of 14.39% and a Common Equity Tier 1 ratio of 12.54%, all above regulatory minimums. Return on equity after tax rose to 22.15%, up 75 basis points from 2024.
Sustained profit growth
Chief executive Bernd van Linder said the bank's performance reflected consistent execution over multiple years.
"Achieving net profit growth for 22 consecutive quarters and recording net loans of over AED 100 billion are significant achievements that underline the bank's robust fundamentals," he said. "We achieved consistent results over the past five years, despite global headwinds, demonstrating the strength of our strategy to drive sustained growth and long-term value creation for all our stakeholders."
Van Linder said the bank will continue investing in customer experience, digital capabilities and national talent in 2026, while aligning operations with the UAE's economic transformation agenda.
Digital transformation
CBD said it continued to accelerate its digital transformation strategy during 2025, supported by technology investments and partnerships.
The bank reported its highest SME Net Promoter Score in more than three years, which it attributed to improvements in onboarding and service delivery.
In December, CBD said it became the first UAE bank to fully activate open finance at scale.
The bank said it also supported national initiatives, including Aani instant payments, the UAE Central Bank digital currency programme, the Financial Infrastructure Transformation Programme and Etihad Credit Insurance's Xport Xponential initiative.
Gulfnews
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