The Commercial Bank (CBQK) investor relations material

Executive summary

• Net profit after Pillar Two Tax was QAR 1,013.7 million for H1 2026, down 19.6% year-over-year, with stable net interest margin at 2.2% and resilient operating performance despite regional volatility.

• Net operating income rose 9.4% year-on-year to QAR 2,459 million, driven by higher net interest and fee income.

• Strategy execution for 2026–2030 is underway, focusing on capital efficiency, fee-driven growth, digital transformation, and embedding AI across operations.

• Maintained robust capital and liquidity positions, with CET1 at 12.8% and total CAR at 18.9%.

• Comprehensive income was QAR 849.6 million, reflecting significant foreign currency translation losses.

Financial highlights

• Net profit before Pillar Two Tax: QAR 1,083 million; net profit after tax: QAR 1,013.7 million for H1 2026.

• Net interest income increased 14.4% year-on-year to QAR 1,841.6 million; net interest margin stable at 2.2%.

• Net provisions rose sharply to QAR 718 million (up 143% year-on-year), reflecting a more balanced provisioning approach and higher ECL charges.

• Cost-to-income ratio at 31.6% (domestic: 26.9%; Alternatif Bank: 68.2%).

• Investment securities portfolio expanded 15.4% to QAR 41.3 billion, with 80.1% in government bonds.

Outlook and guidance

• Full-year 2026 net cost of risk guidance: 90–100 bps; long-term target: 70–90 bps.

• Loan growth guidance for 2026: 3% year-on-year, with selective focus on high-return segments.

• Net interest margin expected to remain around 2.2%, with potential downward pressure of 10–15 bps.

• Positive jaws targeted from 2027 onwards, with cost-to-income ratio expected to fall below 30% by 2030.

• Sustainable dividend policy maintained, subject to regulatory approval.