Dukhan Bank (DUBK) Q2 2025 earnings summary

Executive summary

• Net profit for H1 2025 reached QAR 811.3 million, up 3.5% year-over-year, with total assets at a record QAR 118.3 billion and financing assets at QAR 85.8 billion.

• Growth was driven by disciplined capital deployment, diversified portfolio, strong liquidity management, and a 6.2% increase in net banking income.

• Interim dividend of 8% of nominal share value (QAR 0.08 per share) was approved, reflecting confidence in performance and future prospects.

• Maintained strong government linkage, with 43.1% government and GRE shareholding and significant government-related deposits and financing.

• Recognized for award-winning customer service and digital innovation, with multiple accolades in 2024 and 2025.

Financial highlights

• Net banking income grew 6.2% year-over-year to QAR 1,358 million, supported by revenue diversification and prudent funding cost management.

• NIMs increased slightly to 2.1%; operational efficiency improved profitability.

• Investment securities rose to QAR 23.2 billion (20% of assets), with average yields around 4.4%-4.5%.

• Customer deposits slightly decreased by 2% to QAR 82.0 billion compared to June 2024.

• ROTE improved to 13.0% (from 11.1% FY 2024); ROTA at 1.4% (from 1.2% FY 2024).

Outlook and guidance

• Expect mid-single-digit balance sheet and profitability growth for 2025, led by wholesale and private banking.

• NIMs guided to remain around 2.1% by year-end; a 25 bps rate cut could uplift NIMs by 7-8 bps.

• Asset quality expected to remain stable, with cost of risk at 50-60 bps and conservative provisioning.

• Fee and commission income projected to grow mid-single digits, with Q2 as a base for modeling.

• Strategy focuses on expanding wholesale banking, digital transformation, and sustainability initiatives.