International Commercial Bank's Pre-Tax Profits Surge 4% to AED 93 Million in H1

Commercial Bank International Posts Solid Growth as UAE Banking Sector Continues Recovery

Commercial Bank International (CBI) has delivered a modest but steady performance in the first half of 2025, with pre-tax profits rising 4% year-on-year to AED 93 million. The results reflect the broader resilience of UAE's banking sector as it navigates a challenging global economic environment while benefiting from the country's continued economic diversification efforts.

Operating Performance Shows Strong Momentum

The bank's most impressive metric came from operating profits, which surged 134% year-on-year from AED 68 million to AED 158 million in the first half of 2025. This dramatic increase was primarily driven by gains from the sale of non-core assets, signaling a strategic refocusing of the bank's portfolio.

Second-quarter results maintained this positive trajectory, with operating profits climbing 34% year-on-year from AED 33 million to AED 45 million. The Q2 pre-tax profit reached AED 48 million, demonstrating consistent quarterly performance.

Balance Sheet Growth Reflects Market Confidence

Lending Portfolio Expansion

CBI's net loans and advances grew 3% from AED 12.5 billion in June 2024 to AED 12.9 billion in June 2025. While this growth rate appears modest compared to some regional peers, it reflects a disciplined approach to credit expansion in an environment where banks are increasingly selective about lending opportunities.

Deposit Growth Outpaces Lending

Customer deposits showed stronger momentum, rising 7% from AED 14.2 billion to AED 15.2 billion year-on-year. This deposit growth exceeding loan growth indicates improving liquidity positions and suggests the bank is well-positioned for future lending opportunities when market conditions become more favorable.

Strategic Transformation in Focus

CEO Ali Sultan Rakkad Al Ameri emphasized the bank's ongoing strategic transformation, highlighting the institution's focus on core business areas while divesting non-essential assets. This approach mirrors strategies adopted by other regional banks, including Emirates NBD and First Abu Dhabi Bank, which have streamlined operations to focus on high-return segments.

The bank's commitment to innovation and digital solutions aligns with the UAE's broader financial sector modernization, particularly as the country positions itself as a regional fintech hub. This strategic positioning becomes increasingly important as traditional banks compete with emerging digital financial services providers.

Market Context and Outlook

CBI's performance comes against a backdrop of relatively stable conditions in the UAE banking sector, supported by robust economic fundamentals and government initiatives to boost non-oil growth. The bank's steady results, while not spectacular, demonstrate the defensive characteristics that have made UAE banks attractive to investors seeking stability in volatile global markets.

The focus on asset optimization and digital transformation suggests CBI is preparing for a more competitive landscape, where efficiency and customer experience will increasingly determine market share. The bank's promise to continue developing innovative solutions for both retail and corporate clients indicates management's recognition that sustainable growth requires technological advancement alongside traditional banking excellence.