The Commercial Bank (CBQK) Q4 2025 earnings summary

Executive summary

• Strategy for 2026–2030 centers on building a balanced, sustainably profitable bank with a strong retail and wealth franchise, scaling fee-based income, and leveraging AI and digital transformation for efficiency and risk management.

• Key challenges include margin pressure from global rate normalization, digital expectations, capital efficiency, and legacy exposures.

• Net profit after Pillar Two Tax was QAR 2,204.9 million, down 27% year-over-year; net profit before Pillar Two Tax was QAR 2,384.4 million, down 21%.

• Operating income grew 5% to QAR 4,786 million, while operating expenses rose 11% to QAR 1,411 million.

• The Group operates through four main business segments: Wholesale Banking, Retail Banking, International (including Alternatif Bank in Turkey), and Unallocated/Other.

Financial highlights

• Net profit before Pillar Two tax for FY2025 was QAR 2,384 million, down from QAR 3,032 million in FY2024; net profit after tax was QAR 2,204.9 million.

• Total assets increased to QAR 192.9 billion as of 31 December 2025, up from QAR 165.7 billion in 2024.

• Net provisions surged 155% to QAR 1,193.3 million; NPL ratio at 6.1% (down slightly from 6.2%).

• Net interest income rose to QAR 3.41 billion (2024: QAR 3.32 billion); non-interest income improved by 10.8%.

• Customer deposits increased 16.2% to QAR 89.4 billion, with low-cost deposits at 37% of the deposit base.

Outlook and guidance

• Net interest margin (NIM) guidance for 2026 is around 2.2%, with 10bps downward pressure.

• Loan growth expected at ~3% per annum medium-term, focusing on higher-return segments.

• 2026 ROE target is above 9.2%, with a 2030 target above 12%.

• Cost to income ratio targeted below 30% in 2026 and below 27% by 2030.

• Sustainable dividend targeted at QAR 0.3 per share annually, subject to regulatory approval.