Dukhan Bank (DUBK) Q1 2025 earnings summary

Executive summary

• Net profit for Q1 2025 reached QAR 437.1 million, up 3% year-over-year, reflecting solid profitability and resilience amid external headwinds.

• Total assets stood at 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.

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

• Maintained strong government linkage, with 43.2% government-related ownership and significant government and GRE deposits and financing exposure.

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

Financial highlights

• Net banking income grew by 5% year-over-year to QAR 688 million, driven by diversification and stronger non-interest income.

• Fee income included a QAR 30 million one-off, with underlying fee trends expected to remain stable.

• Net fee and commission income rose to QAR 94.3 million from QAR 48.9 million year-over-year.

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

• Investment portfolio yield rose slightly to 4.35% from 4.30% in Q1 2024.

Outlook and guidance

• Anticipates mid-single digit balance sheet and profitability growth for 2025, in line with Qatar's GDP expansion.

• Net interest margin expected to remain stable at 2–2.05%, with potential upside if funding costs decline.

• Conservative provisioning and stable asset quality expected, with cost of risk in the 50–60 bps range.

• Board declared first interim dividends in 2024 and approved a total cash dividend of 16% of nominal share value for FY 2024.

• Strategy focuses on expanding wholesale banking, digital transformation, and sustainability aligned with Qatar National Vision 2030.