Dubai's CBD board approves cash dividend after surge in full year profit

The annual general assembly meeting of the bank will be held on March 11

Commercial Bank of Dubai has set a foreign ownership limit of 40 per cent following approval from the company’s shareholders. Bloomberg

The board of Commercial Bank of Dubai approved distributing a cash dividend of 20.7 per cent of the bank’s paid-up capital for the fiscal year ending December 31, 2019.

The pay out will amount to a total of Dh580 million for the fiscal year, the bank said in a statement to the Dubai Financial Market, where its shares trade. The lender will hold its annual general assembly meeting on March 11.

Earlier this month, CBD reported a 20.5 per cent increase in its full-year net profit which climbed to Dh1.4 billion in 2019 on the back of a 11.3 per cent annual rise in revenue.

The bank offers a range of conventional and Islamic banking products and services to corporate, commercial and personal banking customers through a network of 15 branches and one sales office. It employs around 1,469 people. The Investment Corporation of Dubai has a 20 per cent stake in the lender and Al Futtaim Group, is the second-biggest shareholder with a 10.5 per cent interest.

CBD is investing in new technology and actively pursuing a digital transformation programme to expand and improve its services.