Commercial Bank Group has reported a net profit before Pillar Two Tax of QR1,083.0mn on net operating income of QR2,459.4mn in the first half of this year.
The year-on-year (y-o-y) movement in profit was supported by resilient operating performance in the first half of 2026.
Net operating income increased by 9.4% y-o-y, driven by increases in net interest income and fee income.
This was offset by higher net provisions in the first half of 2026 due to a more balanced approach of loan provisioning across each quarter, and increased operating expenses as the group continued to invest in digital capabilities including AI and people.
The results also include a reported loss of QR28.2mn from Alternatif Bank after the impact of hyperinflation accounting.
Overall balance sheet growth y-o-y was supported by an increase in loans and advances to customers as well as an increase in customer deposits.
Total assets stood at QR184.5bn, up by 1.4% from June 30, 2025. Loans and advances to customers, excluding acceptances, reached QR98.0bn, up by 3.6% from June 30, 2025.
Customer deposits stood at QR85.1bn, up by 1.8% from June 30, 2025, while capital adequacy ratio stood at 18.9%, up from 17.2% as of June 30, 2025. Total equity was QR26.6bn, up by 1.6% from June 30, 2025.
On a normalised basis, excluding the Long-Term Incentive Scheme (LTIS) related movements, the adjusted net profit before Pillar Two Tax for the six months ended June 30, 2026 is QR1,107.8mn.
The group also accrued a charge of QR69.3mn for BEPS (Base Erosion and Profit Shifting) Pillar Two Tax, resulting in net profit after Pillar Two Tax excluding LTIS of QR1,038.5mn for the period.
“The first half of 2026 demonstrated the resilience of Qatar’s economy and the strength of Commercial Bank’s foundations. Our priorities remain centred on sound governance, balance-sheet resilience and the careful execution of our strategy to create sustainable long-term value in alignment with Qatar National Vision 2030,” said Sheikh Abdulla bin Ali bin Jabor al-Thani, the chairman.
Omar Hussain Alfardan, vice chairman and managing director, said during the first half, the group remained focused on the execution of its strategic priorities.
“In Retail Banking, we deepened retail and wealth relationships while protecting the strength of our core businesses across cards, employee banking and remittances. In Wholesale Banking, we strengthened our transaction banking proposition, with external recognition for our cash management and payment-processing capabilities, reflecting the strength of our platform and service standards,” he said, adding that the senior management appointments announced in the second quarter further enhance the leadership capabilities required to deliver the next phase of the group’s strategy and develop Qatari talent.
Stephen Moss, Group CEO, said the group delivered resilient operating momentum in the first half, with net operating income increasing by 9.4% and operating profit by 7.9%.
“The domestic franchise remained solid, underlying lending grew, and Alternatif Bank returned to operating profitability. Reported profit was affected by higher provisioning as we apply a more balanced approach across the year, consistent with prudent risk management and IFRS 9,” he said.
Total assets as on June 30, 2026 reached QR184.5bn, mainly driven by an increase in investment securities and by an increase in investment in associates. Investment securities increased by 15.4% to reach QR41.3bn, with the group investing in high-quality market securities that support sustainable and recurring income.
Net loans and advances to customers, excluding acceptances, of QR98.0bn reflects growth of 3.6% from June 30, 2025. Customer deposits increased by 1.8% to QR85.1bn, while low-cost deposits increased by 1.6% to QR35.5bn and represented 42.0% of the total customer deposit mix. Other borrowings increased by 15.9% to QR28.4bn.
The group reported consolidated net profit after tax of QR1,013.7mn for the six months ended June 30, 2026, including a BEPS Pillar Two Tax charge of QR69.3mn and a reported post-hyperinflationary accounting loss of QR28.2mn for Alternatif Bank.
Net interest income increased by 14.4% to QR1,841.6mn, and net fee and commission-based income increased by 3.5% to QR509.3mn, which included one-off fees. The group’s reported cost-to-income ratio increased to 31.6%, mainly due to an increase in staff costs. Gross provisions increased by 110.5% to QR905.2mn, including gross loan provisions and ECL of QR680.4mn.
Net provisions were at QR717.5mn, supported by recoveries which increased year on year by 39.7% to QR187.6mn. The share of the results of associates increased by 7.3% to QR209.7mn. The group’s Common Equity Tier 1 (CET 1) Ratio as on June 30 stood at 12.8%, while the Total Capital Adequacy Ratio (CAR) increased to 18.9%.
These ratios are higher than the regulatory minimum requirements of the Qatar Central Bank and Basel III requirements. The group is subject to the global minimum top-up tax under Pillar Two tax legislation, which relates to the Group’s operations in the State of Qatar.
The group has accrued for Base Erosion and Profit Shifting (BEPS) Pillar Two Tax with effect from January 1, 2025, based on the applicable rules under BEPS Pillar Two Anti Global Base Erosion (“GloBE”) Rules.
The rules have multiple mechanisms that aim to ensure that qualified multinational enterprises maintain a minimum effective tax rate of 15%, calculated based on the excess taxable profits in every jurisdiction in which the group operates.
The incremental impact of these new taxes amounted to QR69.3mn for the six months ended June 30, 2026, compared to QR112.9mn for the same period in 2025.
All three major rating agencies affirmed the group’s ratings, with S&P at A- / Stable / A-2; Fitch at A / Rating Watch Negative / F1; and Moody’s at A3 / Stable / P-2.
