Dukhan Bank net profit up 3.5% to QR811.3m in H1

10/07/2025 07:04 AST

Dukhan Bank announced its financial results for the six-month period ended30June 2025, and reported a net profit of QR 811.3m, representing a 3.5% growth compared to the same period of last year.

The Group delivered a strong financial performance during the first six months of 2025, reflecting continued successful execution of its strategic initiatives and building on the strong momentum established previously. Group net profit increased by 3.5%, supported by a 6.2% rise in net banking income.

This growth in net banking income was driven by the Group's ongoing focus on revenue diversification and the strengthening of non-profit income streams. Additionally, despite challenging external conditions, prudent management of funding costs provided further support to the Group's net banking income.

Operational efficiency also remained a key strategic focus, with continued optimization efforts enhancing overall profitability. These results highlight the Group's resilience and its ability to sustain growth in an evolving operating environment.

The Group sustained its highest-ever total asset base, reaching QR118.3bn as of June 2025, an increase of 3.5% compared to 30 June 2024. The asset mix remains predominantly comprised of financing assets, which stood at QR85.8bn, representing 72.6% of total assets. This was complemented by investment securities amounting to QR23.2bn, accounting for 19.6% of the total asset base.

During the period, the Bank maintained a steady expansion of its financing portfolio, which reached QR85.8bn, up by 3.8% compared to the same period last year. This growth aligns with the Bank's strategic objective of steadily increasing its market presence while ensuring disciplined and efficient capital allocation. The Bank continues to prioritize building a well-diversified portfolio, placing a clear emphasis on asset quality over volume to ensure prudent risk management.

Reflecting the Group's strong credit risk discipline and proactive portfolio management, the non-performing loan (NPL) ratio improved to 4.5% as of June 2025, compared to 5.2% in June 2024 and 4.6% in December 2024. In parallel, the Stage 3 coverage ratio rose to 74.3% (June 2024: 65.6%; December 2024: 73.1%), further underscoring the Group's robust approach to credit provisioning and risk mitigation.

On the funding side, the Group continued to strengthen and diversify its funding base by leveraging its long-standing client relationships and maintaining a balanced maturity profile. These efforts supported a healthy liquidity position, reflected in a regulatory loan-to-deposit ratio of 100%. Both the Liquidity Coverage Ratio (LCR) and Net Stable Funding Ratio (NSFR) remained comfortably above regulatory thresholds throughout the period.

Total equity reached QR15.2bn, while the Group maintained a solid Capital Adequacy Ratio (CAR) of 18.3%(June 2024: 17.8%; December 2024: 17.3%), significantly above the minimum requirements set by the Qatar Central Bank and in line with Basel III standards, providing a strong foundation for sustainable growth.

In a sustained precedence set in the last year, the Board of Directors has decided to distribute interim dividends of 8% of the nominal share value, equivalent to QR0.08 per share.

The interim dividend is subject to regulatory approvals. This dividend will be payable to the shareholders as at the close of trading on 17July 2025. The dividend will be payable on a future date to be announced later. This decision reflects the Board's strong confidence in the Bank's prospects and its commitment to providing value to shareholders.

The Peninsula