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, reflecting solid delivery against strategic objectives and robust operational efficiency.

• Total assets hit QAR 118.3 billion, with financing assets at QAR 85.8 billion and investment securities at QAR 23.2 billion.

• Interim dividend of 8% of nominal share value (QAR 0.08 per share) approved/proposed for H1 2025, subject to regulatory approval.

• Maintained strong government and GRE linkage, with significant shareholding and deposits.

• 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, driven by revenue diversification and prudent funding cost management.

• NIMs increased slightly to 2.1%, with operational efficiency improvements supporting profitability.

• NPL ratio declined to 4.5%, with Stage 3 coverage at 74.3% (over 90% including eligible collateral).

• Capital adequacy ratio stood at 18.3%, well above the regulatory minimum.

• Earnings per share for H1 2025 were QAR 0.149, up from QAR 0.144 in H1 2024.

Outlook and guidance

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

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

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

• Fee and commission income expected to grow at a mid-single-digit rate, with Q2 levels seen as a sustainable base.

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