Dukhan Bank reported a 5% year-on-year (y-o-y) growth in net profit to reach QR1.25bn in 2022, with an EPS of QR0.227 per share, post considering nominal value of QR1 per share.
This comes after the bank’s transformation into a Qatari public shareholding company by listing its shares on the Qatar Stock Exchange and commencement of trading from February 21, 2023.
Total income for the year increased to QR4.5bn, showing solid double-digit growth of 10% from last year, while net income from financing activities also grew to QR3.2bn, marking a 10% y-o-y growth. Overhead expenses were below last year by 4% from QR782mn to QR750mn.
Total assets reached QR106bn and financing assets increased to QR76bn with a growth of 1% over last year. The balance sheet is mainly funded by customer deposits, which reached QR75bn. The regulatory LDR was maintained at 100% level, asserting prudent liquidity management by the bank.
The bank’s total equity soared to QR12.5bn, representing a growth of 3%, whereas the total capital adequacy ratio was 18.3% as of December 31, 2022, in accordance with Basel III and Qatar Central Bank (QCB) guidelines, showing strong and well-capitalised position of the bank.
Return on equity and assets were 11% and 1.2%, respectively in 2022. The bank has been rated “A2” and “A-” by Moody’s and Fitch, respectively with a stable outlook.
Reflecting on the robust performance, Dukhan Bank’s board of directors proposed a dividend distribution to shareholders of 16% or QR0.16 per share, post considering nominal value of QR1 per share after its conversion to a public listed company, increased from QR0.14 per share or 14% of the nominal share value last year, subject to approval of general assembly meeting of the shareholders and QCB
Sheikh Mohamed bin Hamad bin Jassim al-Thani, chairman & managing director of Dukhan Bank, said: “We are very pleased that Dukhan Bank has continued its progressive growth journey, which led to improved financial performance that resulted in achieving solid growth, supported by stability, resilience, and high-performance of the Qatari banking sector in 2022.
“The outstanding performance is also attributed to the exceptional hosting of the 2022 FIFA World Cup by the State of Qatar and the contribution that we have made to ensure its success by supporting our customers and Qatar’s guests with innovative and secured banking services.”
He added: “This financial report is of particular importance to the bank’s management and shareholders as Dukhan Bank recently recorded a significant milestone by successfully listing its shares on the Qatar Stock Exchange, transforming into a Qatari public shareholding company. This step will enable us to share the positive results of the Bank’s successful growth journey over the years with a broader base of investors.”
Noting the financial results, the board of directors stated: “The importance of the environmental, social, and corporate governance (ESG) strategy launched by the bank in 2022 was highlighted in the meeting. The bank aims to be placed in a leading position within Qatar’s transition to a sustainable society, helping to build a future in which economic growth and sustainability are aligned in accordance with Qatar National Vision 2030 with an increased focus on the bank digital transformation strategy to provide its more than 150,000 customers base an easy, secure, and seamless banking experience.”
