Dukhan Bank posts QR1.19bn net profit in 2021

Dukhan Bank has posted a net profit of QR1.19bn in 2021, recording 17% year-on-year growth in net profits.
The bank’s robust financial performance during the year has resulted in its total assets to increase to QR110.7bn, representing a significant growth of more than 28% as compared to last year driven by growth under the financing assets and investment securities. Notably financing assets continued to grow to QR75.2bn as of December 31, 2021 from QR58.5bn in end-2020, representing a “remarkable” growth of 29%.
Further customers’ deposits balance increased to QR77.4bn at end- 2021, which mainly supported the assets growth, increased considerably by 44% compared to QR53.9bn in December 2020.
The bank’s total equity soared to QR14bn in 2021 from QR11.5bnn in 2020, whereas the total capital adequacy ratio stands at 18.4% as of December 31, 2021, in accordance with the Basel III guidelines, maintaining a sufficient buffer above the minimum supervisory ratio as specified by Qatar Central Bank and Basel Standards.
Dukhan Bank’s strong asset liability management capabilities enabled it to improve its financing to deposits ratio to under 98% from above 100% at end- 2020 reflecting the improvement in the Bank’s overall liquidity position.
The total income for the year increases to QR4,050mn resulting in a growth of 7% compared to QR3,788mn during 2020, while net operating income reached QR2,068mn, compared to QR1,974mn, which represents a year-on-year growth of 5%.
Dukhan Bank’s drive for operational efficiency coupled by strong revenue sources has helped it to improve cost to income ratio from 28% to 27% during the year as well.
Reflecting on the 'strong' performance, Dukhan Bank’s Board of Directors proposed a dividend distribution to shareholders of QR1.4 per share or 14% of the nominal share value, up from QR1.0 per share or 10% of the nominal share value last year, subject to approval of general assembly meeting of the shareholders.
Dukhan Bank has been affirmed rating of 'A' by Fitch Ratings, and “A2/Prime-1” with a stable outlook by the international rating agency Moody's.
Reflecting on Dukhan Bank’s strong financial performance in 2021, Sheikh Mohammed bin Hamad bin Jassim al-Thani, chairman and managing director, commented, “Despite the on-going global market uncertainties, Qatar’s banking sector remains robust with rising profitability and strong capitalisation.
“Dukhan Bank has successfully navigated through the ongoing economic environment generating a significant 17% year-on-year growth in net profits (2020 net income before goodwill impairment of QR450mn).
“Supported by assets of QR110 billion, we began 2022 with a robust strategy to propel the bank upward to even greater heights. Building on the progress already achieved, Dukhan Bank is determined to generate stronger returns for our shareholders while simultaneously ensuring a superior banking experience for all our customers.”
“It is important to thank His Highness Sheikh Tamim Bin Hamad al Thani, the Amir of the State of Qatar for the outstanding role he plays in the development and security of Qatar. It is due to the effective leadership of His Highness The Amir and the government of Qatar that Dukhan Bank is able to achieve such remarkable growth and success.”
Dukhan Bank CEO Khalid al-Subeai said, “The major elements of Dukhan Bank’s outstanding performance and continued growth lies in the bank’s relentless pursuit of advanced technologies and innovations that empower our customers. This allows the bank to adopt the latest technologies to transform the digital products and service offered to customers.
“Dukhan Bank has consistently aimed to improve the customers’ experience, build trust and increase loyalty by developing multiple banking channels that answer their myriad needs easily and conveniently.”
Confirming its position as the leading digital bank in Qatar, Dukhan Bank introduced a number of new and innovative digital products and services during 2021 that provide added value for customers. Contactless payment platform Dukhan Pay (D-Pay) now enables individual and corporate customers to conduct all their transactions online easily and securely by integrating seamlessly and securely with payment services like Apple Pay, Fitbit Pay, and Garmin Pay.
Recently, Dukhan Bank unveiled the services provided by ‘Rashid’, its virtual assistant service who will respond to the customers’ various inquiries online quickly and easily through the Bank’s website and mobile applications.
Powered by artificial intelligence, cloud technology and machine learning, Rashid offers fast solutions and quick responses to customer enquiries in both Arabic and English.
The year 2022 promises to offer Dukhan Bank customers further services with ‘Rashid.
Digital banking at Dukhan Bank reached new heights in 2021 with the launch of an upgraded Corporate Banking Digital Platform offering corporate customer a range of digital services suited for business with secure, seamless transition between web and mobile apps.