Commercial Bank Group reported net profit before Pillar Two Tax of QR538.3mn in the first quarter (Q1) of 2026, supported by resilient operating performance.
Total assets were up 12.8% year-on-year to QR190.6bn with loans and advances (excluding acceptances) at QR97.1bn, up 3.9% on annualised basis.
During the review period, the bank maintained strong liquidity and a strong capital position, successfully re-issuing $500mn of Additional Tier 1 capital securities. The lender saw strong capital position, with capital adequacy ratio at 18.4%, increasing from 17.1% in January-March 2025.
Customer deposits amounted to QR85bn, up by 11.3% from March 31, 2025. Total equity stood at QR26.1bn, up 1.8% year-on-year.
Net operating income increased by 7.6% year-on-year to QR1.22bn, driven by increase in net interest income and fee income.
This was offset by higher net provisions, increased operating expenses including IFRS 2-related long-term incentive scheme (LTIS) movements, and a reported loss of QR25.7mn from Turkish subsidiary factoring the impact of hyper-inflation.
“Commercial Bank began 2026 with continued focus on prudent stewardship, sound governance and balance-sheet strength. In the current backdrop, our priorities remain firmly anchored in preserving financial strength, maintaining strong capital and liquidity, and continuing disciplined execution of our strategy to deliver sustainable long-term value creation. We remain confident in the strength of Qatar’s fundamentals, and the bank’s ability to build steadily on its foundations in alignment with Qatar National Vision 2030, said its chairman Sheikh Abdulla bin Ali bin Jabor al-Thani.
The group is very focused on executing the next phase of its strategy, announced in January, and progress is being made across its core businesses. The retail and wealth business saw good and consistent returns supported by lending growth.
The group strengthened its advisory-led offering through a new wealth management tool and hybrid advisory model, supporting fee income growth. On the wholesale banking side, the lending book grew in the core segments with clear focus on cross sell opportunities.
The associates continued to perform well as the group continues to work closely with them in the execution of their strategies. Performance at Alternatif Bank in Turkey improved year-on-year at operating profit level.
However, the results at Alternatif Bank were impacted by hyperinflation accounting, as the group continues to apply International Accounting Standard 29 (IAS 29), given that Turkey remains a hyperinflationary economy.
This quarter also reflects a more balanced approach of loan provisioning consistently throughout the year, rather than a significantly larger charge in the fourth quarter. This approach is in line with IFRS9 and prudent risk management.
The group also accrued for the BEPS (Base Erosion and Profit Shifting) Pillar Two Tax, a charge of QR36.9mn.
“In the current operating environment, we remained focused on staying close to our clients, supporting their needs, delivering resilient performance and continuing to execute our strategy with discipline," according to Omar Hussain Alfardan, vice chairman and managing director, Commercial Bank.
In Q1-2026, the bank further strengthened customer proposition, service delivery and continued to progress in the digital and AI (artificial intelligence)-led transformation as part of its broader transformation that will support the group’s sustainable growth in line with its strategy.
"We remain committed to reinforcing resilience across the business while continuing to respond to evolving client needs,” he added.
The current heightened geopolitical environment has resulted in uncertainty across the Gulf Cooperation Council, with direct impacts on energy supply and certain trade routes.
Despite this backdrop, the group has continued to operate resiliently, supported by its strong operating platform, established governance framework, and ongoing investment in digital capabilities including AI, which have enabled customers to maintain seamless and secure access to banking services.
The group’s Business Continuity and Crisis Management activities have ensured its operational resilience throughout the current environment. Backed by strong infrastructure, resilient capabilities, and close coordination with the regulator, the bank has been able to sustain uninterrupted services and maintain full operational readiness throughout this period.
Stephen Moss, group chief executive officer, said in Q1-2026 the bank delivered a resilient operating performance as it continues to be focused on prudent risk management and the execution of the next phase of its strategy.
"Net operating income and operating profit both improved year-on-year, while the reduction in reported net profit primarily reflected higher provisioning, consistent with adjustments of the scenario weights made under IFRS 9 to take into account the current geopolitical environment and balanced provisioning throughout the year," he said.
