Dukhan Bank reports a net profit of QAR 784 million for the six-month period ended 30 June 2024

The Board of Directors recommends 8% interim dividends

• Strong profitability driven by a persistent year-on-year growth in total income of 15%
• Group’s total assets reached QAR 2 billion
• Robust CAR of 17.8%, well above the minimum statutory limits
• The Board of Directors recommends an interim dividend of QR 0.08 per share (equivalent to 8% of nominal value of shares), subject to regulatory approvals

Dukhan Bank (“the Bank” or “the Group” when referred to along with its subsidiaries; QSE Ticker: DUBK) announced its financial results for the six-month period ended 30 June 2024, reporting a net profit of QAR 784 million, representing a 3% growth compared to the last year.

Key Performance Highlights

Analysis of Group’s financial performance

The Group reported a net profit of QAR 784 million for the first six months of 2024, reflecting a 3% year-on-year growth. This growth in bottom-line profitability was underpinned by a 18% increase in net income from financing activities, and a 34% rise in net income from investing activities, resulting in an overall rise in total income for the Group which grew by 15%.

The Group maintained its efforts to enhance operational efficiency and build on revenue sources, leading to a cost to income ratio of 31.6%.

Analysis of Group’s financial position  

The Group’s total assets stood at QAR 114.2 billion, primarily comprising of financing assets of QAR 82.7 billion (72% of total assets) and investment securities of QAR 16.7 billion (15% of total assets).

The balance sheet is mainly funded by customer deposits, which were QAR 84.6 billion at end of the financial period. The Group's liquidity remained robust, with regulatory loans-to-deposits ratio of 96.1%. Total shareholders’ equity amounted to QAR 12.9 billion. The capital adequacy ratio (CAR) was maintained at 17.8% in accordance with Basel III requirements, adequately above the minimum supervisory ratio specified by the Qatar Central Bank.

Interim dividends

In a significant move, the Board of Directors has declared the Bank’s first interim dividends of 8% equivalent to QR 0.08 per share. The proposed dividend is subject to regulatory approvals. This dividend will be payable to the shareholders as at the close of trading on 24^th July 2024. The dividend will be payable on a future date to be announced later. This decision reflects the Board’s strong confidence in the Bank’s future prospects and its commitment to providing value to shareholders.

Enhanced digital services

Dukhan Bank remains steadfast in its commitment to continuous innovation, regularly introducing new digital services and products to facilitate seamless banking transactions. With strategically positioned branches across the nation, Dukhan Bank offers a comprehensive array of advanced banking services and products aimed at enhancing accessibility, streamlining processes, and providing unmatched convenience to our expanding customer base.

A key highlight of our recent innovations is ‘Fawran,’ a service that allows for the instant transfer of money within Qatar, making transactions quick and effortless. We have also introduced the Smart Kiosk, a self-service machine designed to simplify and expedite the card printing process securely. Additionally, the 'Himyan' prepaid and debit card enables both new and existing customers to make secure local payments across the country. Our digital transformation is further exemplified by the seamless integration of Apple Pay, Samsung Wallet, and Google Pay through our contactless payment platform, D-Pay. Notably, Dukhan Bank introduced Qatar’s first prepaid digital card on our mobile app, becoming the initial partner in the country to join Mastercard's global Digital First Card program.

In our relentless pursuit of efficiency, we have launched instant finance for pre-approved customers via the Dukhan Mobile app. This feature is complemented by the introduction of Credit Card Spend Analytics on our mobile app, providing automated insights into categorized card spending, thus enhancing our credit decisioning models crucial to our lending processes. Prioritizing customer support, we introduced ‘Rashid,’ an AI-powered virtual assistant that assists customers across our digital platforms. These innovations reflect Dukhan Bank’s dedication to offering top-tier digital banking experiences and reinforcing our position as a leader in the financial sector.

Unwavering excellent performance and prestigious awards

In the first six months of 2024, Dukhan Bank has earned significant international acclaim and prestigious awards, reinforcing its position as Qatar's premier banking institution. Following the MENA Banking Excellence Awards 2024, Dukhan Bank secured six new titles, including "MENA Wealth Manager of the Year," highlighting its leadership in wealth management and commitment to tailored investment solutions. The bank also received accolades for “Best Retail Bank”, “Best Islamic Product Offering in MENA”, “Best Mortgage/Home Finance Offering in MENA”, “Best Multi-Channel Offering in MENA”, and “Excellence in Customer Centricity in MENA”, reaffirming its dedication to innovative banking solutions.

Additionally, Dukhan Bank was recognized as the "Best Islamic Financial Institution in Qatar 2024" at the Global Finance Awards, emphasizing its leadership in the Islamic banking sector. The bank was named "World’s Best Islamic Private Bank 2024" for the third consecutive year, underscoring its exceptional private banking services for high-net-worth individuals.

Furthermore, Dukhan Bank achieved significant milestones in data security and regulatory compliance by obtaining the Payment Card Industry Data Security Standard (PCI DSS) version 4.0 and ISO/IEC 27001 certifications. The PCI DSS version 4.0 certification affirms the bank's stringent security measures for handling payment card information. The ISO/IEC 27001 certification from Shamkris Global validates the bank's robust approach to information security management, ensuring the confidentiality, integrity, and availability of critical information assets.

Most recently, Moody’s affirmed Dukhan Bank’s credit rating at “A2” with a stable outlook, and Fitch upgraded its Long-Term Issuer Default Rating to ‘A’ with a ‘stable’ outlook. Moreover, Dukhan Bank ranks 4^th in Qatar and 23^rd in the Middle East on Forbes Middle East's 30 Most Valuable Banks 2024 List, and it was also listed among Forbes Middle East's Top 100 Listed Companies 2024.