Dukhan Bank announces financial statement for the second quarter of 2021;
Doha-Qatar, July 2021 - Dukhan Bank has released its financial results for the second quarter of 2021, recording a net profit of QAR 585.7 million. This marks an increase of 10.7% compared to the same period of last year.
The total income for the six-month period ending 30 June 2021, increased to QAR 1,928.9 million resulting in a growth rate of 9.1% compared to QAR 1,767.2 million during the same period in 2020. The total operating income during first half of 2021 increased significantly by QAR 221.4 million or 28.1% to QAR 1,009.0 million from QAR 787.6 million same period last year. Considering strong income growth and cost reduction, more operational efficiency was achieved as evident through reduction in the cost-to-income ratio, which decreased from 32% to 26% from the same period last year.
The bank’s robust financial performance in the first half of the year has resulted in its total assets increased to QAR 101.9 billion, representing a growth of 18.1% compared to 31 December 2020. Financing assets continued to grow strongly, reaching QAR 78.6 billion with a growth of 34.2% compared to December 2020. Whereas customer deposits, which mainly supported the balance growth, have increased by 31.9% from December 2020 to reach QAR 71.1 billion at end of June 2021.
Shareholders' equity raised to QAR 11.6 billion and the total capital adequacy ratio was stable at 16% as of June 30, 2021 in accordance with the Basel-III requirements, while maintaining a sufficient buffer above the minimum supervisory ratio as specified by the Qatar Central Bank and Basel Standards.
Furthermore, the Bank’s solid financial performance has been complimented through assignment of a rating of 'A' with a stable outlook by Fitch Ratings; and “A2/Prime-1” with a stable outlook by the Moody's, both internationally acclaimed rating agencies.
Upgrading customer experience with digital transformation
During the second quarter of 2021, Dukhan Bank added the ‘My Stocks’ feature to its mobile banking application to meet its customers’ demands for online trading services. The trading service is powered by The Group Securities (licensed by the Qatar Financial Markets Authority), Qatar-based online trading platform, which allows customers to view real-time market data, place buy and sell stock orders, evaluate their portfolio, and analyse market through their smartphones. With this cutting-edge feature, Dukhan Bank became the first player in the industry to integrate with a trading service enabling customers to be part of its ambitious digital transformation endeavour.
Issuance of debut Additional Tier 1 USD500m Sukuk
Following a remarkable investors’ demand, Dukhan Bank issued its debut Additional Tier 1 USD 500 million Sukuk. The Sukuk is priced with a profit rate of 3.95%, the lowest rate for this type of issuance in the Qatari market. The issuance included more than 84 investors in more than 19 countries around the world. The books were covered 4.5 times, peaking at USD2.35 billion, which is a testament of the Bank’s competitive market positioning and valued reputation amongst the global investor base.
