Dukhan Bank (DUBK) Q3 2024 earnings summary

Executive summary

• Net profit for the nine months ended 30 September 2024 rose by 3% year-over-year to QAR 1,141.4 million, with return on tangible equity increasing to 12.8% from 11% last year.

• Total assets reached a record QAR 116.7 billion, with financing assets comprising 73% and investment securities 15%.

• Maintained a robust capital adequacy ratio of 17.4%, well above regulatory requirements.

• Strategic focus on digital transformation, customer-centricity, and product innovation supported resilience and market share.

• Recognized with multiple awards for retail, digital, and private banking excellence in 2024.

Financial highlights

• Net income from financing activities increased by 17% and from investing activities by 33%, resulting in a 16% rise in total income year-over-year.

• Total income rose 14% year-over-year to QAR 4,983 million.

• Customer deposits grew 5% from FY 2023 to QAR 82.3 billion.

• Net profit margin held steady at 2.1%.

• Non-performing loans (NPL) ratio improved to 4.7% from 5.4% at end-2023.

Outlook and guidance

• Expecting single-digit balance sheet expansion for full year 2024, aligned with national GDP growth.

• Board declared the first interim dividend of QR 0.08 per share, reflecting confidence in future prospects.

• Growth to be led by wholesale and private banking, emphasizing quality over quantity.

• No significant deterioration in asset quality anticipated; conservative provisioning to continue.

• Targeting 100% stage 3 coverage ratio within 12 months.