PHOTO
- Strong profitability driven by a persistent year-on-year growth in total income of 15%
- Group’s total assets reached QAR 114.2 billion
- Robust CAR of 17.8%, well above the minimum statutory limits
- The Board of Directors recommends an interim dividend of QR 0.08 per share (equivalent to 8% of nominal value of shares), subject to regulatory approvals
Doha, Qatar: Dukhan Bank (“the Bank” or “the Group” when referred to along with its subsidiaries; QSE Ticker: DUBK) announced its financial results for the six-month period ended 30 June 2024, reporting a net profit of QAR 784 million, representing a 3% growth compared to the last year.
Key Performance Highlights
|
| Total assets QAR 114.2 billion |
| Financing assets QAR 82.7 billion |
| Customer deposits QAR 84.6 billion |
|
|
|
|
|
|
|
|
|
|
| Net profit QAR 784 million |
| EPS per share |
|
|
|
Analysis of Group’s financial performance
| Key financial performance indicators Amounts in QAR’ millions | 1H | 1H | Growth (%) |
| Net income from financing activities | 2,571 | 2,186 | +18% |
| Total income | 3,286 | 2,869 | +15% |
| Net profit | 784 | 761 | +3% |
| Earnings per share (QAR) | 0.144 | 0.139 | +3% |
The Group reported a net profit of QAR 784 million for the first six months of 2024, reflecting a 3% year-on-year growth. This growth in bottom-line profitability was underpinned by a 18% increase in net income from financing activities, and a 34% rise in net income from investing activities, resulting in an overall rise in total income for the Group which grew by 15%.
The Group maintained its efforts to enhance operational efficiency and build on revenue sources, leading to a cost to income ratio of 31.6%.
Analysis of Group’s financial position
| Key financial position indicators Amounts in QAR’ millions | 30 Jun | 31 Dec 2023 | Growth (%) |
| Financing assets | 82,699 | 77,585 | +7% |
| Total assets | 114,242 | 114,417 | -0.2% |
| Total deposits | 84,591 | 78,002 | +8% |
The Group’s total assets stood at QAR 114.2 billion, primarily comprising of financing assets of QAR 82.7 billion (72% of total assets) and investment securities of QAR 16.7 billion (15% of total assets).
The balance sheet is mainly funded by customer deposits, which were QAR 84.6 billion at end of the financial period. The Group's liquidity remained robust, with regulatory loans-to-deposits ratio of 96.1%. Total shareholders’ equity amounted to QAR 12.9 billion. The capital adequacy ratio (CAR) was maintained at 17.8% in accordance with Basel III requirements, adequately above the minimum supervisory ratio specified by the Qatar Central Bank.
Interim dividends
In a significant move, the Board of Directors has declared the Bank’s first interim dividends of 8% equivalent to QR 0.08 per share. The proposed dividend is subject to regulatory approvals. This dividend will be payable to the shareholders as at the close of trading on 24th July 2024. The dividend will be payable on a future date to be announced later. This decision reflects the Board’s strong confidence in the Bank’s future prospects and its commitment to providing value to shareholders.
Enhanced digital services
Dukhan Bank remains steadfast in its commitment to continuous innovation, regularly introducing new digital services and products to facilitate seamless banking transactions. With strategically positioned branches across the nation, Dukhan Bank offers a comprehensive array of advanced banking services and products aimed at enhancing accessibility, streamlining processes, and providing unmatched convenience to our expanding customer base.
A key highlight of our recent innovations is ‘Fawran,’ a service that allows for the instant transfer of money within Qatar, making transactions quick and effortless. We have also introduced the Smart Kiosk, a self-service machine designed to simplify and expedite the card printing process securely. Additionally, the 'Himyan' prepaid and debit card enables both new and existing customers to make secure local payments across the country. Our digital transformation is further exemplified by the seamless integration of Apple Pay, Samsung Wallet, and Google Pay through our contactless payment platform, D-Pay. Notably, Dukhan Bank introduced Qatar’s first prepaid digital card on our mobile app, becoming the initial partner in the country to join Mastercard's global Digital First Card program.
In our relentless pursuit of efficiency, we have launched instant finance for pre-approved customers via the Dukhan Mobile app. This feature is complemented by the introduction of Credit Card Spend Analytics on our mobile app, providing automated insights into categorized card spending, thus enhancing our credit decisioning models crucial to our lending processes. Prioritizing customer support, we introduced ‘Rashid,’ an AI-powered virtual assistant that assists customers across our digital platforms. These innovations reflect Dukhan Bank’s dedication to offering top-tier digital banking experiences and reinforcing our position as a leader in the financial sector.
Unwavering excellent performance and prestigious awards
In the first six months of 2024, Dukhan Bank has earned significant international acclaim and prestigious awards, reinforcing its position as Qatar's premier banking institution. Following the MENA Banking Excellence Awards 2024, Dukhan Bank secured six new titles, including "MENA Wealth Manager of the Year," highlighting its leadership in wealth management and commitment to tailored investment solutions. The bank also received accolades for “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”, reaffirming its dedication to innovative banking solutions.
Additionally, Dukhan Bank was recognized as the "Best Islamic Financial Institution in Qatar 2024" at the Global Finance Awards, emphasizing its leadership in the Islamic banking sector. The bank was named "World’s Best Islamic Private Bank 2024" for the third consecutive year, underscoring its exceptional private banking services for high-net-worth individuals.
Furthermore, Dukhan Bank achieved significant milestones in data security and regulatory compliance by obtaining the Payment Card Industry Data Security Standard (PCI DSS) version 4.0 and ISO/IEC 27001 certifications. The PCI DSS version 4.0 certification affirms the bank's stringent security measures for handling payment card information. The ISO/IEC 27001 certification from Shamkris Global validates the bank's robust approach to information security management, ensuring the confidentiality, integrity, and availability of critical information assets.
Most recently, Moody’s affirmed Dukhan Bank’s credit rating at “A2” with a stable outlook, and Fitch upgraded its Long-Term Issuer Default Rating to ‘A’ with a ‘stable’ outlook. Moreover, Dukhan Bank ranks 4th in Qatar and 23rd in the Middle East on Forbes Middle East's 30 Most Valuable Banks 2024 List, and it was also listed among Forbes Middle East's Top 100 Listed Companies 2024.
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 on Grand Hamad Street, Doha and its 9 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.
Disclaimer:
This press release may contain details about future events and expectations that are forward-looking statements. Any statement in this press release that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.
None of the future projections, expectations, estimates or prospects in this press release should be taken as forecasts or promises nor should they be taken as implying any indication, assurance or guarantee that the assumptions on which such future projections, expectations, estimates or prospects have been prepared are correct or exhaustive or, in the case of the assumptions, fully stated in the press release. Further past performance cannot be relied on as a guide to future performance. The Bank assumes no obligations to update the forward-looking statements contained herein to reflect actual results, changes in assumptions or changes in factors affecting these statements. The Bank relies on information obtained from sources believed to be reliable but does not guarantee its accuracy or completeness. The opinions presented herein are based on general information gathered at the time of writing and are subject to change without notice.
The Bank, it’s Directors, officers, advisors, contractors and agents, its subsidiaries and associates, shall not be liable in any way for any costs, losses or other detrimental effects resulting or arising from the use of or reliance by any party on any forward-looking statement and / or other material contained herein.
