Doha, Qatar: The Commercial Bank, its subsidiaries and associates (“Group”) announced yesterday its financial results for the nine months ended 30 September 2024.

The Group reported a net profit of QR2,341.2m as compared to last year’s reported net profit of QR2,365.4m for nine months 2023 which was restated to QR2,277m for the same period in 2023, representing a 1% decrease on a reported basis and a 2.8% increase on a restated basis.

The result highlights the steady progress made on our path of growth and innovation.

The nine months 2023 numbers were restated due to the restatement of the year-end 2023 financial statements for the underlying derivative on the share option performance scheme. Accordingly, the current nine months 2024 figures provided are compared with the previous year restated numbers.

Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman, said, “Throughout the first nine months of 2024, Commercial Bank continued to execute its strategic plan, achieving a positive net profit growth. Further, the Bank has made good progress towards its sustainability efforts which is core to Commercial Bank’s strategy in line with the Qatar National Vision 2030 and National Environment and Climate Change Strategy. Last month MSCI upgraded Commercial Bank’s ESG rating from BBB to A and we continue to enhance our ESG practices across the Bank in accordance with best international standards. We remain committed to a resilient and sustainable financial future.”

Hussain Alfardan, Vice Chairman, said, “Commercial Bank has shown steady progress in the first nine months of 2024, supported by Qatar’s economic momentum and our focus on operational efficiency. Our disciplined cost management has maintained our cost-to-income ratio to acceptable levels, and growth across key segments reflects our commitment to meeting customer needs. The recent issuance of our inaugural Green Bond, raising CHF 225 million underscores our dedication to sustainable finance and to driving impactful green projects in Qatar.”

Joseph Abraham, Group Chief Executive Officer, commented, “Commercial Bank delivered a resilient performance in the first nine months of 2024, aligning with our strategic objectives and demonstrating positive financial results. We recorded a consolidated net profit of QAR 2,341.2 million, a 2.8% increase year-on-year, driven by lower operating costs, lower net provisions, and improved associate performance. Despite a decline in net interest income due to higher market funding costs, our core fee income grew by 10%, reflecting strengthened focus on transaction banking, cards, and wealth management. We continue to optimize our balance sheet, evidenced by a 2.2% increase in total assets. Additionally, our strategic capital market issuances, including a successful issuance of CHF 225 million Green Bond, underscore investor confidence in our financial health and commitment to sustainable growth. Our capital position remains robust with Common Equity Tier 1 ratio at 13.0% and Capital Adequacy Ratio at 17.8% underlining strong capital accretion as the Bank continues to grow in line with the guidance. Looking ahead, we remain committed to executing our long-term strategy and supporting Qatar’s National Vision 2030 through responsible banking and sustainable financing.”

Total assets as at 30 September 2024 reached QAR 163.2 billion, an increase of 2.2% from 30 September 2023. This is mainly driven by increase in due from banks, where lending to financial institutions have increased.

Income statement: Net profit for the nine months ended 30 September 2024 reached QR2,341.2m, an increase of 2.8% on restated basis, compared to same period last year.

The ratio of non-performing loans to gross loans stood at 6.0% as at 30 September 2024 compared to 5.3% as at 30 September 2023, due to lower loan balances. Capital ratios: The Group’s Common Equity Tier 1 (CET 1) Ratio as at 30 September 2024 reached 13.0%.

During 2024, Fitch and Moody’s affirm Commercial Bank’s credit ratings to “A” and “A2” respectively, with a stable outlook.

Moody’s maintains a stable outlook for Commercial Bank, expecting its capitalization and liquidity to remain resilient despite challenges like asset quality pressures and reliance on external funding.

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