Dukhan Bank H1 net profit surges 3.5% to QR811.3mn

Dukhan Bank posted a net profit of QR811.3mn in the first half of 2025, registering a 3.5% year-on-year (y-o-y) growth.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.Earnings per share also witnessed a 3.5% y-o-y increase from QR0.144 to QR0.149.The 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 optimisation 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, or a 3.5% y-o-y increase. The asset mix remains predominantly comprising 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, Dukhan Bank maintained a steady expansion of its financing portfolio, which reached QR85.8bn, up by 3.8% y-o-y. The growth aligns with Dukhan Bank’s strategic objective of steadily increasing its market presence while ensuring disciplined and efficient capital allocation. The bank continues to prioritise 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.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 the Basel III standards, providing a strong foundation for sustainable growth.In a sustained precedent 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 at the close of trading on July 17, 2025. The dividend will be payable on a future date to be announced later. This decision reflects the board’s strong confidence in Dukhan Bank’s prospects and its commitment to providing value to shareholders.In the second quarter of 2025, Dukhan Bank accelerated its digital innovation journey with the launch of several key enhancements that reflect its customer-first strategy and leadership in Shariah-compliant digital banking.Dukhan Bank’s continued pursuit of innovation and service excellence has garnered widespread recognition in Q2 2025 from leading regional and global financial institutions.