Dukhan Bank (DUBK) Q4 2024 earnings summary

Executive summary

• Achieved record net profit of QAR 1.34 billion for FY2024, up 3% year-over-year, with robust return on tangible equity at 11.1% and total assets at QAR 117.9 billion.

• Financing book grew 11% annually, mainly driven by wholesale and private banking, with customer deposits funding 81% of liabilities.

• Maintained a strong capital adequacy ratio of 17.3%, well above the 14.6% regulatory minimum.

• Board proposed a total dividend of 16% of nominal share value for 2024, subject to approvals.

• The bank completed its transition to a public shareholding company and is listed on the Qatar Stock Exchange.

Financial highlights

• Net income from financing activities rose 11% to QAR 5,189.9 million, and net income from investing activities increased 14% to QAR 1,089.3 million, driving a 12% rise in total income.

• Net profit margin maintained at 2.1%, with a 10 bps year-over-year increase in NIM.

• Non-performing loan (NPL) ratio improved to 4.6% from 5.4% last year; stage 3 coverage ratio reached 73.1%, or about 95% including eligible collateral.

• Cost-to-income ratio held at 32.9%, with a slight increase in Q4 due to end-of-year accruals and office relocation costs.

• Earnings per share rose to QAR 0.244 from QAR 0.237 year-over-year.

Outlook and guidance

• Expect mid-single digit growth in both balance sheet and bottom line for 2025, driven by wholesale and private banking.

• Project a 15 bps improvement in NIM in 2025, assuming a 50 bps rate cut.

• Cost to income ratio expected to remain flat or slightly lower, trending toward 30% in the medium term.

• Conservative provisioning to continue, with cost of risk targeted at 50–60 bps, assuming zero recoveries.

• The bank continues to assess the impact of international tax reforms (BEPS Pillar Two) but is currently exempt from income tax in Qatar.