The Commercial Bank (CBQK) Q4 2025 earnings summary

Executive summary

• Announced a strategic plan for 2026–2030 focused on balanced retail and wholesale growth, capital efficiency, fee-based income, digital innovation, and resolving 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, with non-interest income up 10.8% and operating expenses rising 11%.

• Loans and advances to customers increased 14.3% to QAR 104.5 billion; customer deposits rose 16.2% to QAR 89.4 billion.

• Consolidated financial statements for 2025 were audited and found to present fairly the financial position and performance in accordance with IFRS.

Financial highlights

• Net profit before Pillar Two tax was QAR 2,384 million for 2025, down from QAR 3,032 million in 2024.

• Net interest income rose 3% year-over-year to QAR 3.41 billion; fees and other income up 10.8%.

• Net provisions surged 155% to QAR 1,193.3 million; NPL ratio at 6.1%.

• Operating income increased 5.1% year-over-year, driven by net interest, fees, and investment income.

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

Outlook and guidance

• Targeting steady ROE improvement, with a 2026 ROE target above 9.2% and a 2030 target above 12%.

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

• Net cost of risk expected at 80–100 bps for 2026–2027, normalizing to 70–90 bps from 2028.

• Loan growth guidance of ~3% per annum in the medium term, with retail book expected to increase 50% by 2030.

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