Dubai: Commercial Bank of Dubai’s net loan book crossed Dh100 billion during the first half of 2026 as lending growth and higher non-funded income helped lift profit despite weaker net interest income.Net loans and advances reached Dh104.2 billion at the end of June, rising 3.1% from December 2025 and 4.4% from the same period last year.Net profit after tax increased 1.2% from the first half of 2025 to Dh1.72 billion, while profit before tax rose 1.3% to Dh1.89 billion.The bank delivered an after-tax return on equity of 20.92% during the period.Income rises despite pressure on interest earningsOperating income increased 2.7% year-on-year to Dh2.9 billion, supported by a 10.9% rise in non-funded income.Treasury sales, investment income and trade-related activity drove the increase, helping offset a 0.6% decline in net interest income.“Our strong H1 2026 performance demonstrates the continued resilience of our franchise and strength of our customer relationships. The results are supported by solid business growth and diversified income generation, while maintaining healthy funding, liquidity and capital positions and a disciplined approach to risk management. We commend the UAE leadership for their continued commitment to economic resilience, financial stability and sustainable growth, providing a strong foundation for the continued development of the UAE economy,” said Dr. Bernd van Linder, Chief Executive Officer of CBD.Operating expenses increased 3.4% to Dh775 million as CBD continued spending on digitisation, technology, business expansion, governance and regulatory compliance.The cost-to-income ratio stood at 26.72%.Deposits reach Dh107.7 billionCBD’s total assets rose 2.6% from a year earlier to Dh154.5 billion at the end of June.Gross loans and advances increased 3.4% year-on-year to Dh108.2 billion and were 2.7% higher than at the end of 2025.Customer deposits reached Dh107.7 billion, up 0.6% from the first half of last year. Current and savings account balances represented 51% of total deposits.The loan-to-deposit ratio stood at 96.74%, while the advances-to-stable-resources ratio was 91.28%, within the UAE Central Bank’s regulatory ceiling.Bad-loan ratio improvesCBD’s non-performing loan ratio fell by 53 basis points from the same period last year to 3.60%, while its coverage ratio reached 96.51%.The bank reported a capital adequacy ratio of 14.13%, with its Tier 1 and Common Equity Tier 1 ratios both at 13%.“We remain focused on supporting customers, executing strategic priorities and investing in innovation and technology to deliver sustainable long-term value for all our stakeholders,” van Linder said.Nivetha Dayanand is Assistant Business Editor at Gulf News, where she spends her days unpacking money, markets, aviation, and the big shifts shaping life in the Gulf. Before returning to Gulf News, she launched Finance Middle East, complete with a podcast and video series.