Doha Bank (DHBK) Q2 2024 earnings summary

Executive summary

• Net profit reached QAR 432.3 million in H1 2024, up 10.9% year-over-year, with total assets rising 13.8% to QAR 105.9 billion and customer deposits up 17%.

• Launched 50 transformation initiatives, including a new mobile app, driving digital adoption and operational efficiency.

• Issued a USD 500 million, 5-year bond, marking a return to debt capital markets after two years.

• Non-interest income rose 9.3% YoY, while net interest income declined 4.5% YoY.

• Focused on sustainable growth, selective client acquisition, and ongoing NPL resolution strategy.

Financial highlights

• Net interest income for H1 2024 was QAR 974.8 million, down 4.5% year-over-year; net profit up 10.9% YoY to QAR 432.3 million.

• Total assets grew 13.8% YoY to QAR 105.9 billion; customer deposits increased 17% YoY.

• Loan-to-deposit ratio improved to 96% from 104% at 2023 year-end.

• Loan loss impairment for H1 was QAR 406 million, down 14% YoY.

• Basic and diluted EPS for H1 2024 was QAR 0.14, up from QAR 0.13 in H1 2023.

Outlook and guidance

• Full-year loan growth guidance maintained at 5%, with a 3-5% annual growth target over five years.

• NIM guidance for year-end at 2.00%-2.10%; cost-to-income ratio expected to remain around 35%.

• Cost of risk guidance at 150 bps for year-end; NPL ratio expected around 10%.

• Fee and commission income expected to be flat to low single-digit growth by year-end.

• Return on equity expected at 6-6.5% for FY 2024.