Dukhan Bank reports net profit of QR437m for Q1 2025

22/04/2025 03:39 AST

Dukhan Bank announced its financial results for the three-month period ended 31 March 2025,and reported a net profit of QR437m, representing a 3% growth compared to the same period of last year.

The Group delivered a solid financial performance during the first quarter of 2025, reflecting the continued successful execution of its strategic initiatives and building on the strong momentum of previous years.

Bottom-line profitability grew by 3%, supported by a 5% increase in net banking income. The uplift in net banking income was driven by the Group's ongoing focus on revenue diversification and the strengthening of non-profit income streams. In addition, despite prevailing external headwinds, prudent management of funding costs contributed positively to the Group net banking income.

On the other hand, operational efficiency remained a strategic priority, with continued optimization efforts delivering added value to overall profitability. These results underscore the Group's resilience and ability to a sustained growth in a dynamic operating environment.

The Group's total assets remained at historic levels, standing at QR117.7bn at the end of March 2025. The asset base continues to be primarily composed of financing assets, which reached QR86.6bn and represent 74% of total assets, alongside investment securities amounting to QR19.6bn (17% of total assets).

During the period, the Bank maintained its financing portfolio, bringing the total to QR86.6bn. This aligns well with the Bank's strategic objective of steadily increasing market share, while maintaining disciplined and efficient resource deployment. The focus remains on achieving a well-diversified portfolio with an emphasis on asset quality over sheer volume, thereby effectively managing risk exposure.

Reflecting the Group's strong asset quality and disciplined credit risk management, the non-performing loan (NPL) ratio improved to 4.5% as of March 2025, down from 5.1% in March 2024 and 4.6% in December 2024. In parallel, the Stage 3 coverage ratio increased to 74.5% (March 2024: 71.5% and December 2024: 73.1%), reaffirming the Group's prudent and proactive approach to managing credit risk.

Total equity reached QR14.8bn, while the Group sustained a strong Capital Adequacy Ratio (CAR) of 17.9%, significantly exceeding the minimum regulatory requirements of the Qatar Central Bank and the Basel III framework, providing solid foundations to support future growth.

The Peninsula