Dukhan Bank (DUBK) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 rose 3% year-over-year to QAR 437.1 million, supported by strong asset quality, robust liquidity, and a 5% increase in net banking income.

• Total assets reached QAR 117.7 billion, with financing assets at QAR 86.6 billion and customer deposits at QAR 82.0 billion, both up 4% from Q1 2024.

• Maintained a capital adequacy ratio of 17.9%, well above regulatory requirements.

• Earnings per share increased to QAR 0.080 from QAR 0.078 year-over-year.

• Recognized with multiple awards for Islamic banking, digital innovation, and customer service excellence.

Financial highlights

• Net profit for Q1 2025 was QAR 437.1 million, a 3% increase year-over-year.

• Net banking income rose 5% year-over-year to QAR 688 million, with fee income including QAR 30 million in one-off items.

• Financing assets grew 7% year-over-year to QAR 86.6 billion; customer deposits increased 4% to QAR 82.0 billion.

• Cost-to-income ratio improved to 31.4%, reflecting disciplined cost management.

• Non-performing loan ratio improved to 4.5% from 5.1% in March 2024, with provision coverage at 74.5%.

Outlook and guidance

• Expect mid-single digit balance sheet growth for 2025, in line with Qatar's GDP growth.

• Profitability anticipated to grow at a similar rate as the balance sheet.

• NIMs expected to remain stable at 2%-2.05%, with potential upside if funding costs decline.

• Conservative provisioning to continue, with cost of risk projected at 50-60 basis points.

• The Group continues to assess the impact of new tax legislation (BEPS Pillar Two) effective from 2025, with no immediate impact on Q1 results.