Dukhan Bank posts QR1.3bn net profit in 2023

Dukhan Bank reported the highest ever net profit of QR1.3bn in 2023 with a 4% year-on-year (y-o-y) growth mainly attributed to a rise in net income from financing activities, which led to an overall increase in total income for the bank, which grew by 37%.
Further, improvement in net impairment charge owing to better recoveries also supported the bottom-line profitability on an overall basis. Net profit margins for the bank remained resilient, despite persistently higher policy rates prevailed throughout the year.
After reviewing the current year’s financial performance, with an assessment of the present and anticipated liquidity position and taking into account the prevailing and future macroeconomic conditions along with the business outlook, the board of directors has recommended a 16% annual cash dividend distribution equivalent to QR0.16 per share.
Earnings per share (EPS) stood at QR0.237 per share.
The bank’s total assets amounted to QR114.4bn, which mainly comprised financing assets of QR77.6bn (68% of total assets), followed by investment securities of QR20.0bn (17% of total assets).
The balance sheet is mainly funded by customer deposits, which were QR78.0bn at the end of the financial year. The bank’s liquidity position remained robust with a regulatory loans-to-deposit ratio of 98.1%.
Total shareholders’ equity remained above QR12.9bn. The capital adequacy ratio (CAR) is maintained at 17.2% in accordance with Basel III requirements being adequately higher than the minimum supervisory ratio as specified by the Qatar Central Bank.
Dukhan Bank chairman Sheikh Mohamed bin Hamad bin Jassim al-Thani said, “At Dukhan Bank, we are excited about the continual attainment of exceptional results throughout 2023, contributing significant value to our customers, stakeholders, and the nation. Over the past year, we have reached noteworthy milestones with our successful listing on the Qatar Stock Exchange standing as a strong testament to the trust and confidence bestowed upon our institution by our shareholders. Additionally, our robust business models have showcased resilience in navigating many challenges, fortifying the overall stability of our institution.
“At Dukhan Bank, our commitment to the future remains steadfast as we persist in investing in advanced digital capabilities to elevate our customer service and facilitate their banking requirements with greater ease. We take pride in our significant social contributions and the strides made in our sustainability journey, evident in various initiatives undertaken in both operations and corporate culture. These milestones position us to advance and emerge as leaders in the banking sector in Qatar.
He added: “Moving forward, we are committed to leveraging our core strengths to seek out new opportunities, cultivate innovation, and provide exceptional value to our shareholders. Simultaneously, we aim to expand our existing market share with a focus on sustainable growth.”