Doha - The Commercial Bank and its subsidiaries announced a net profit after tax of QR2,204.9 million (QR2.2 billion) for the year ended 31 December 2025, reflecting resilient performance despite higher provisions, increased operating expenses, and challenging market conditions.

The bank’s net profit before Pillar Two Tax was QR 2,384.4 million, down from QR3,032.1 million in 2024. The decline primarily stemmed from higher net provisions, IFRS 2-related long-term incentive scheme movements, and a QR144.7 million loss from its Turkish subsidiary, impacted by hyperinflation.

On a normalised basis, excluding LTIS-related movements, adjusted net profit before Pillar Two Tax reached QR2,424.6 million. The bank also accrued QR 179.4 million for BEPS Pillar Two Tax, with potential reliefs expected following the finalisation of draft executive regulations in 2026.

Total assets of the bank grew 16.4 percent to QR192.9 billion, driven by growth in loans and advances and a 21.3 percent rise in investment securities to QR40.3 billion. Net loans and advances climbed 14.3 percent to QR104.5 billion, while customer deposits reached QR89.4 billion, with low-cost deposits increasing 4.5 percent, representing 37 percent of the total deposit mix. The bank’s retail and wealth businesses continued to deliver consistent returns, while wholesale banking maintained lending growth alongside transaction banking services. Performance at Alternatif Bank in Turkey also improved at the operating profit level.

Net interest income increased 2.9 percent to QR3,413.9 million, and fees and other income rose 10.8 percent to QR1,372.2 million. Gross provisions increased 78.2 percent to QR1,905.1 million, with net recoveries rising 18.3 percent. The reported cost-to-income ratio edged up to 29.5 percent due to higher staff costs. Capital strength remained robust, with the Common Equity Tier 1 ratio at 12.2 percent and the Capital Adequacy Ratio at 17.6 percent, comfortably above regulatory requirements.

Credit rating agencies affirmed the Bank’s strong credit profile, with S&P assigning ‘A-’, Fitch ‘A’, and Moody’s ‘A2’, all with stable outlooks.

The board of directors proposed a QR0.30 per share dividend, equivalent to 30 percent of nominal share value, subject to Qatar Central Bank approval and shareholder endorsement at the Annual General Meeting.

The bank also launched its 2026–2030 strategic plan, aimed at positioning Commercial Bank as Qatar’s banking partner of choice. The strategy emphasizes sustainable and balanced growth by strengthening wholesale banking through fee-based income and strategic client focus, enhancing retail banking offerings including cards, remittances, and digital wealth solutions, and leveraging digital platforms, artificial intelligence, and automation to improve productivity and customer experience. Talent development and fostering a performance-driven culture remain central to executing this strategy and ensuring long-term value creation.

Commercial Bank Chairman Sheikh Abdulla bin Ali bin Jabor Al Thani said, “The year 2025 demonstrated disciplined execution and balance-sheet resilience. With the appointment of our new CEO, Stephen Moss, the Group is well-positioned for sustainable growth in alignment with Qatar National Vision 2030.”

Moss added, “Our refreshed strategy focuses on operational discipline, capital efficiency, and long-term value creation, positioning Commercial Bank as a trusted partner for customers and shareholders in the next phase of our growth.”

© Copyright Qatar Tribune. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).