It’s quite a challenge to more than double a bank’s assets, profitability, and market share. Yet, Bernd Van Linder managed to do it not once, but twice, across two different banks.
He stands out for achieving such growth in two Gulf nations—first with Saudi Bank in Saudi Arabia and later as the CEO of Dubai Commercial Bank in the UAE.
So, how did he pull this off?
“The very simple answer is that I like challenges,” Van Linder shared during an interview at CBD’s headquarters in Dubai. “What’s really exciting for me is making things better than I found them, and that’s why I go to work every day.”
With a PhD in Artificial Intelligence, Van Linder is often described as a “practical” corporate leader. He arrived in the Gulf in November 2006, joining Saudi Hollandy, one of the oldest banks in Saudi Arabia.
He took on the CEO role in May 2009 and spent six and a half years at the bank, where he was able to reshape its operations.
Van Linder pointed out, “We doubled our profitability as a team from RI1 billion to RI2 billion, growing to RI100 billion.” This success led them to hope they could replicate the same achievement at CBD.
“I jumped at the chance to do something similar at a bank that had a good reputation, was well-managed, and stable,” he said. “Yeah, I wanted to try it again in a different market. I aimed to achieve what I did in Saudi Arabia.”
When he took over as CEO of CBD in January 2017, the bank had about Dh64 billion in assets, which has more than doubled in the past seven years.
For Van Linder, increasing CBD’s market share in the UAE banking sector is a key indicator of success. Over the last eight years, the bank’s share has climbed from just over 2% to nearly 5%.
Strategic Cycle
The bank is currently in the middle of its latest three-year strategic cycle. Van Linder mentions that they are on track to meet “very aggressive KPIs” despite facing “intense competition” in recent months.
“Our focus isn’t just on assets; it’s about market share,” he explained. “We need to grow faster than the market, which is our number one priority. The second priority is to hit the 5% market share mark, which helps us stay relevant in any market.”
CBD is currently ranked the seventh-largest bank in the UAE. “We find ourselves in a unique spot. There are five banks much larger than us, while many are significantly smaller,” he added.
Economical Tailwind
However, maintaining this growth trajectory isn’t easy. With over 50 licensed banks competing for the same customers in the Emirates, Van Linder notes,
“We transformed this bank into a highly aggressive, customer-focused, delivery-oriented organization. I genuinely enjoy what I’m doing and I’m thrilled it’s working,” he said.
CBD reported a net profit of DH303 million at the end of last year, and for the three months ending in March, its net profit jumped to DH828 million, marking an 18% annual increase.
Much of the success from the past few years, according to him, originates from strong economic growth. The UAE economy grew by 4% last year, largely due to the expansion of the non-oil sector, as noted by the Ministry of Economy.
The non-oil economy escalated by 5% to reach 1.34 trillion Dhs, constituting over 75% of the nation’s economic activities; meanwhile, oil-related sectors contributed an estimated DH43.4 billion to the gross domestic product.
Looking ahead, the UAE Central Bank projects actual GDP growth of 4.4% in 2025 and an increase to 5.4% this coming year, spurred by the anticipated vitality in non-oil sectors and improved hydrocarbon activity per the revised OPEC+ production strategy.
Although geopolitical tensions loom, such as the ongoing conflict between Israel and Iran, they haven’t dampened the UAE’s economic outlook, nor its reputation as a safe investment haven, Van Linder noted.
“From my point of view, I’ve shown the world that this place is like an oasis,” he stated. “It’s the best place to do business. In my view, that won’t change due to external circumstances.”
Retail to Promote Growth
Looking forward, CBD aims to continue its growth by prioritizing retail banking. Van Linder mentions a focus on “hypergrowth” in mortgage and credit card sectors, as well as expanding more profit-oriented financial services, which he believes will help achieve their strategic objectives for 2024-2026.
When he began leading CBD, the bank was already in a solid position in commercial banking. Yet, Van Linder emphasized that retail banking has become pivotal to the growth they’ve seen so far.
“In 2017, we expressed a desire to be a major player in mortgages, and we’ve certainly reflected that in performance over the past quarters,” he added.
Recently, CBD has also begun extending loans to government-related entities throughout the Emirates, and it’s effectively expanded operations across borders.
Retail, institutional, and corporate segments each account for about a third of CBD’s total revenue, and Van Linder is content with that balance. “If there’s any shift, I aim to increase retail to 40% of the total. I think that would be beneficial for the bank,” he noted.
Given the consistent population and economic growth in the UAE, he thinks that goal is “not impossible.”
“Staying agile is crucial for us. We must be quick, which is what our customers expect and respond positively to,” Van Linder said.
Growth of Small and Medium-Sized Business Lending
CBD plans to enhance its lending offerings specifically for startups and small businesses moving forward.
“It’s not a new focus, but it’s certainly a challenging segment to get right,” he observed. “Some banks in the UAE have navigated this well, while others have struggled.”
According to the latest reports, CBD’s loan portfolio grew by 11.7% annually, reaching Dh93 billion by last year, though a slower growth rate is anticipated this year. He expects net income to see single-digit to double-digit growth by 2025.
While organic growth is key, CBD is open to considering mergers and acquisitions.
“We’re receptive to possibilities, but our primary inclination remains towards organic growth,” Van Linder stated.
CBD has already obtained the UAE credit card portfolio from Saudi lender Samba Bank and the Najam card business from Majid Al Futtaim.
“We’ve done it twice before, and we’re open to doing it again,” he remarked, though he noted that there are currently no active deals on the horizon.
Focus on Technology
In alignment with global digital transformation trends, CBD has significantly ramped up its capital investment in technology, quadrupling spending on digitalization over the past five years. Van Linder anticipates further investments in the near future.
“We’re prepared for open finance. There’s still a lot to explore in digital services that we haven’t tackled yet, and we foresee continued investment,” he said.
He emphasized that the rise of digital banks in the UAE is a significant factor driving the need for banks to enhance their technological capabilities, as these new entrants have started capturing market share from traditional banks.
More crucial than that, in his view, is the need to improve customer experience based on lessons learned from purely digital competitors.
“These are our competitors, and we can only keep pace if we perfect our end-to-end processes,” he stressed. “This is not just about an impressive banking app.”
The Biggest Challenge
With heightened competition from both traditional banks and digital-only lenders, maintaining relevance with customers is Van Linder’s primary challenge.
“Operating in a market with 52 licensed banks means the top four hold 80% of market share, leaving smaller banks with a very diverse range of options for customers,” he explained.
“So, how do we ensure customers choose us? That’s something that really keeps me awake at night.”
But despite his challenges, he noted, “I have no regrets about moving from a larger bank. What’s not to like about Dubai and this bank?”
CBD remains, in his words, “big enough to do everything, yet small enough to be involved at all levels of operation.”
Van Linder’s vision for CBD has largely remained unchanged. He aims to transform banks into “high-performing organizations.”
“To me, achievements are stepping stones. We’re not where we want to be, and there’s certainly more to accomplish,” he acknowledged. “We’ve doubled our size and tripled our net profits, but this is definitely not the finish line.”
He envisions CBD becoming the bank of choice for all its customers.
“I hope to be remembered as the person who established a well-organized, resilient institution that others can build upon,” he concluded.
