Dukhan Bank reports a net profit of QAR 437 million for the three-month period ended 31 March 2025, up by 3%

• Strong bottom-line profitability underpinned by a persistent year-on-year growth in the net banking income by 5%
• Group’s total assets reached QAR 117.7 billion

Dukhan Bank (“the Bank” or “the Group” when referred to along with its subsidiaries; QSE Ticker: DUBK) announced its financial results for the three-month period ended 31 March 2025, and reported a net profit of QAR 437 million, representing a 3% growth compared to the same period of last year.

Key Performance Highlights

Analysis of Group’s financial performance

The Group delivered a solid financial performance during the first quarter of 2025, reflecting the continued successful execution of its strategic initiatives and building on the strong momentum of previous years. Bottom-line profitability grew by 3%, supported by a 5% increase in net banking income.

The uplift in net banking income was driven by the Group’s ongoing focus on revenue diversification and the strengthening of non-profit income streams. In addition, despite prevailing external headwinds, prudent management of funding costs contributed positively to the Group net banking income.

On the other hand, operational efficiency remained a strategic priority, with continued optimization efforts delivering added value to overall profitability. These results underscore the Group’s resilience and ability to a sustained growth in a dynamic operating environment.

Analysis of Group’s financial position  

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The Group’s total assets remained at historic levels, standing at QAR 117.7 billion at the end of March 2025. The asset base continues to be primarily composed of financing assets, which reached QAR 86.6 billion and represent 74% of total assets, alongside investment securities amounting to QAR 19.6 billion (17% of total assets).

During the period, the Bank maintained its financing portfolio, bringing the total to QAR 86.6 billion. This aligns well with the Bank’s strategic objective of steadily increasing market share, while maintaining disciplined and efficient resource deployment. The focus remains on achieving a well-diversified portfolio with an emphasis on asset quality over sheer volume, thereby effectively managing risk exposure.

Reflecting the Group’s strong asset quality and disciplined credit risk management, the non-performing loan (NPL) ratio improved to 4.5% as of March 2025, down from 5.1% in March 2024 and 4.6% in December 2024. In parallel, the Stage 3 coverage ratio increased to 74.5% (March 2024: 71.5% and December 2024: 73.1%), reaffirming the Group’s prudent and proactive approach to managing credit risk.

On the funding front, the Group continued to strengthen and diversify its funding base, capitalizing on its long-standing client relationships and maintaining a sound maturity profile. These efforts contributed to a resilient liquidity position, supported by a regulatory loans-to-deposits ratio of 100%. Additionally, both the Liquidity Coverage Ratio (LCR) and the Net Stable Funding Ratio (NSFR) remained comfortably above regulatory thresholds throughout the quarter.

Total equity reached QAR 14.8 billion, while the Group sustained a strong Capital Adequacy Ratio (CAR) of 17.9%, significantly exceeding the minimum regulatory requirements of the Qatar Central Bank and the Basel III framework, providing solid foundations to support future growth.

Enhanced digital services

Dukhan Bank continues to set new benchmarks in digital banking, evolving its offerings to meet the ever-changing expectations of modern customers. This year saw the rollout of a refreshed Dukhan Mobile app, boasting an enhanced, user-friendly interface that simplifies navigation and optimises the customer journey. The app not only streamlines finance and credit card applications but also acts as a one-stop destination for all payment-related needs.

Building on this momentum, Dukhan Bank further expanded its digital capabilities by launching instant finance and instant credit card issuance, allowing customers to access key financial products within minutes through the app. In addition, new functionalities such as salary advance enablement and real-time display of card offers were introduced, empowering customers to make informed decisions and access tailored solutions on demand. These enhancements reaffirm Dukhan Bank’s commitment to delivering agile, customer-centric services through a seamless digital experience.

Beyond mobile banking, the Bank’s digital landscape remains strong with innovations like the Smart Kiosk, which facilitates rapid card issuance without the need for branch visits, the chequebook Machine that help customers print cheque book instantly, and the widespread use of Himyan cards for secure, convenient payments across Qatar. The integration of Apple Pay, Samsung Wallet, and Google Pay via D-Pay has cemented the Bank’s position as a digital frontrunner, while its early adoption of Digital Card program reflects a continued focus on secure, cardless payment experiences that align with global trends.

Unwavering excellent performance and prestigious awards

Dukhan Bank’s pursuit of innovation goes hand in hand with its operational excellence, earning it recognition on prestigious regional and international platforms. At the MENA Banking Excellence Awards 2024 hosted by MEED Magazine, the Bank took home six accolades, including MENA Wealth Manager of the Year, Best Retail Bank, Best Islamic Product Offering, Best Mortgage/Home Finance Offering, Best Multi-Channel Offering, and Excellence in Customer Centricity. Further underscoring its leadership, Dukhan Bank was named Best Islamic Financial Institution in Qatar at the 2024 Global Finance Awards and ranked among Forbes Middle East’s Top 100 Listed Companies for the same year.

These achievements reflect more than external validation, they are the result of a clear, strategic vision anchored in delivering innovative Islamic financial solutions and raising service standards. This vision continues to translate into strong performance, as evidenced by Fitch Ratings reaffirming Dukhan Bank’s Long-Term Issuer Default Rating (IDR) at ‘A’ with a Stable Outlook, a testament to the Bank’s sound fundamentals and long-term resilience.