Dubai – Mubasher: The net profits of Commercial Bank of Dubai (CBD) dropped by 20% to AED 1.12 billion in 2020, compared to AED 1.4 billion in the earlier year, according to the bank's consolidated financial results for 2020.

Lower net profits were driven by the coronavirus (COVID-19) pandemic, which caused a contraction in business conditions and confidence and led to low interbank interest rates and higher specific and forecast credit losses.

The bank's net income recorded AED 1.927 billion in 2020, down from AED 2.285 billion in 2019.

The bank's net interest income and net income from Islamic financing decreased to AED 1.886 billion last year from AED 1.965 billion in 2019.

The basic and diluted earnings per share (EPS) settled at AED 0.40 in 2020, versus AED 0.50 in 2019.

During the fourth quarter (Q4) of 2020, the bank's net profits increased by 6.7% quarter-on-quarter (QoQ) to AED 304 million.

Commenting on the bank's performance, the CEO of CBD, Bernd van Linder, said: "Global and domestic business conditions and confidence continue to be weak, the impact of the COVID-19 pandemic has been truly unprecedented and will be felt for quite some time to come."

It is noteworthy to mention that in the third quarter (Q3) of 2020, the bank's net profits retreated to AED 285.33 million from AED 361.993 million in the corresponding period of 2019.