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- Group’s total assets reached QAR 116.7 billion, a highest level achieved in the Bank’s history
- Robust CAR of 17.4%, well above the minimum statutory limits
Lusail, Qatar: Dukhan Bank (“the Bank” or “the Group” when referred to along with its subsidiaries; QSE Ticker: DUBK) announced its financial results for the nine-month period ended 30 September 2024, reporting a net profit of QAR 1.14 billion, representing a 3% growth compared to the last year.
Key Performance Highlights
Analysis of Group’s financial performance
| Key financial performance indicators Amounts in QAR’ millions | 9M | 9M | Growth (%) |
| Net income from financing activities | 3,897 | 3,324 | +17% |
| Total income | 4,301 | 3,704 | +16% |
| Net profit | 1,141 | 1,107 | +3% |
| Earnings per share (QAR) | 0.209 | 0.203 | +3% |
Group’s financial performance during the first nine months of 2024 demonstrated the execution of our strategy and strengthened platform for growth. The growth in bottom-line profitability was underpinned by a 17% increase in net income from financing activities, and a 33% rise in net income from investing activities, resulting in an overall rise in total income for the Group which grew by 16%.
Growth in net income from financing activities reflected positive momentum in overall volumes coupled with better yields.
The Group’s efforts to cross-sell coupled with deepened client relationships, while leveraging differentiated product strengths, fostered consistent growth in both profit and non-profit income sources.
Analysis of Group’s financial position
| Key financial position indicators Amounts in QAR’ millions | 30 Sep | 31 Dec 2023 | Growth (%) |
| Financing assets | 84,889 | 77,585 | +9% |
| Total assets | 116,702 | 114,417 | +2% |
| Total deposits2 | 82,289 | 78,002 | +5% |
The Group’s total assets stood at QAR 116.7 billion, a highest level achieved in the Bank’s history. Total assets primarily comprise of financing assets of QAR 84.9 billion (73% of total assets) and investment securities of QAR 17.3 billion (15% of total assets).
During this year, the Bank successfully expanded its financing assets, achieving an impressive 9% growth compared to the previous year, bringing the total financing book to QR 84.9 billion. This underscores the Bank's strategic intent to increase its market share, while ensuring efficient and balanced resource allocation.
Building on this strong performance, the non-performing loan (NPL) ratio improved, decreasing from 5.2% to 4.7% as of September 2024. This improvement is largely attributed to the Bank's effective recovery management strategies, reflecting the high quality of its loan portfolio and robust credit risk management practices. Additionally, the Stage 3 coverage ratio reached 69%, reflecting the Group’s prudent approach towards managing non-performing loans.
The balance sheet is mainly funded by customer deposits, which were QAR 82.3 billion at end of the financial period. The Group's liquidity remained robust, with regulatory loans-to-deposits ratio of 101.2%. Total shareholders’ equity amounted to QAR 12.8 billion. The capital adequacy ratio (CAR) was maintained at 17.4% in accordance with Basel III requirements, adequately above the minimum supervisory ratio specified by the Qatar Central Bank.
Enhanced digital services
Dukhan Bank continues to push the envelope in digital banking innovation, consistently launching new services that cater to the dynamic needs of our customers. We unveiled a fresh new look to our Dukhan Mobile app, which features an intuitive interface designed to enhance user experience, a streamlined finance and card application processes, and serves as a centralized hub for all payment needs. Among our latest advancements, we also introduced the 'Request to Pay' feature through our Fawran service on the Dukhan Mobile app. This cutting-edge functionality allows customers to send and receive payment requests instantly, revolutionizing the way transactions are handled in real-time.
Alongside this, our digital suite remains robust with services such as the Smart Kiosk for quick card issuance and our versatile Himyan cards, designed for secure payments nationwide. Our commitment to digital excellence is unwavering, as evidenced by our comprehensive integration of Apple Pay, Samsung Wallet, and Google Pay via D-Pay, and our leadership in digital card solutions with Mastercard's global Digital First Card program.
Unwavering excellent performance and prestigious awards
This period has been marked by recognition across various prestigious platforms, including six accolades by MEED Magazine at the MENA Banking Excellence Awards 2024: "MENA Wealth Manager of the Year", “Best Retail Bank”, “Best Islamic Product Offering in MENA”, “Best Mortgage/Home Finance Offering in MENA”, “Best Multi-Channel Offering in MENA”, and “Excellence in Customer Centricity in MENA”. Dukhan Bank’s industry leadership was further validated at the Global Finance Awards, where it was honored as the "Best Islamic Financial Institution in Qatar 2024”, in addition to its listing among Forbes Middle East top 100 Listed Companies 2024. These recognitions are a testament to the bank’s strategic focus on providing innovative financial solutions and our commitment to excellence in Islamic banking.
Most recently, Dukhan Bank has maintained a trajectory of exceptional performance, underscored by Fitch Ratings reaffirming our Long-Term Issuer Default Rating (IDR) at ‘A’ with a Stable Outlook.
About Dukhan Bank:
Dukhan Bank was incorporated as a Qatari Shareholding Company in the State of Qatar under Commercial Registration No. 38012 dated 28 January 2008. Dukhan Bank commenced its activities on 1 February 2009 under Qatar Central Bank License No. RM/19/2007. The Bank and its subsidiaries are primarily engaged in financing, investing and advisory activities in accordance with Islamic Shari’a rules as determined by the Shari’a Committee of the Bank and provisions of its Memorandum and Articles of Association. Investment activities are carried out for proprietary purpose and on behalf of customers.
The Bank operates through its head office situated in Lusail, and its 8 branches in the State of Qatar. The Bank rebranded itself from Barwa Bank to Dukhan Bank during October 2020 post obtaining necessary approvals as per the State of Qatar applicable laws and regulations. The Bank is 24.6% owned by the General Retirement and Social Insurance Authority, 11.7% by the Military Pension Fund (Qatar), and 7.0% by Qatar Holding, strategic and direct investment arm of Qatar Investment Authority being the sovereign wealth fund of the State of Qatar; and remaining shares are owned by other shareholders.
On 22 January 2023, pursuant to Resolution No. 2 of 2023 by the Minister of Industry and Commerce, the Bank was converted from a Qatari Private Shareholding Company to a Qatari Public Shareholding Company. On 1 February 2023, Qatar Financial Markets Authority approved the listing of the Bank’s shares on the Qatar Stock Exchange.
Following the approval, trading of the Bank's shares on Qatar Stock Exchange Main Index commenced on 21st February 2023. The Bank was included under the MSCI emerging market index as of the close of 31st May 2023. On 15th September 2023, the Bank was included in the FTSE’s mid-cap index. QSE included the Bank to QE Index and QE Al-Rayan Islamic index effective from 1st October 2023.
