Doha Bank (DHBK) Q1 2025 earnings summary

Executive summary

• Achieved net profit growth of 8.8% year-over-year for Q1 2025, with net profit at QAR 252 million and total assets reaching QAR 115.3 billion, driven by the Himma Transformation program and operational efficiencies.

• Net interest income rose 6.4% year-on-year to QAR 520 million, and net fee and commission income increased 12% year-on-year.

• Launched innovative digital solutions, including a top-ranked corporate mobile app, enhanced retail app features, and Lionel Messi-branded cards.

• Announced intention for a share buyback of up to 10% of issued shares, pending regulatory approval.

• CET1 ratio stands at 13.12% and total capital adequacy ratio at 19.27%, well above regulatory minimums.

Financial highlights

• Net profit for Q1 2025 was QAR 252 million, up 8.8% year-on-year, with earnings per share rising to QAR 0.08.

• Net interest income reached QAR 520 million (+6.4% YoY); net fee and commission income was QAR 102 million (+12% YoY).

• Net impairment loss on loans and advances was QAR 229 million, up from QAR 179 million last year.

• Customer deposits stood at QAR 50.2 billion, down 1.3% year-to-date.

• Investment securities portfolio increased by 7% year-to-date.

Outlook and guidance

• Loan growth guidance for 2025 is 5%, with a focus on high-quality assets and conservative underwriting.

• NIM guidance for 2025 is 1.85% ±10bps, with a medium-term target of 2.25%.

• Cost-to-income ratio expected to remain at 37%-38% for 2025, with a medium-term target of 30%-31%.

• Return on equity guidance for 2025 is 6.5%-6.7%, targeting approximately 10% in the medium term.

• New tax regulations (BEPS Pillar Two) may impact future periods, with a potential QAR 37 million tax liability estimated for 2025 if reliefs are not available.