Doha Bank (DHBK) Q4 2024 earnings summary

Executive summary

• Net profit grew 10.7% year-over-year to QR 851.5 million, with total assets up 8.9% to QR 110.2 billion and net loans increasing by 5.1%.

• The Himma Transformation program achieved 62% completion of 173 deliverables, with 90% of initiatives started, including C-suite recruitment and digital enhancements.

• Digital transformation resulted in a top-ranked mobile app, new corporate digital offerings, and global recognition for innovation.

• ESG strategy advanced, aligning with Qatar's National Vision 2030, with phase one completed and new green finance products launched.

• The Board proposed a 10% cash dividend (QR 310 million) for 2024, subject to approval.

Financial highlights

• Net profit reached QR 851.5 million, up from QR 769.5 million in 2023; total assets increased to QR 110.2 billion from QR 101.2 billion.

• Net interest income was QR 1.99 billion, down 5.9% year-over-year; net fee and commission income rose 6.8% to QR 401.9 million.

• Investment securities portfolio grew 12.6% year-over-year.

• Net impairment loss on loans dropped to QR 702 million from QR 892 million; cost of risk improved to 1.18%.

• Customer deposits decreased by 1.4%, but overall funding base increased by QAR 2.7 billion.

Outlook and guidance

• Loan growth guidance for 2025 is 5%-6%; NIM guidance is 185 bps ±5 bps, with short-term pressure expected if further rate cuts occur.

• Cost-to-income ratio targeted at 37%-38% for 2025, with a long-term goal of 30%-31% as transformation investments taper.

• Cost of risk guidance for 2025 is 120-130 bps; NPL ratio targeted around 7%.

• ROE guidance for 2025 incorporates the expected 15% corporate tax; long-term ROE goal is around 10%.

• The Group continues to monitor the impact of international tax reforms (Pillar Two) but cannot yet estimate the effect.