Dukhan Bank achieves a record net profit of QAR 1.34 billion for 2024, reflecting a 3% annual growth

Board of Directors proposed an additional cash dividend distribution to the shareholders of 8% of the nominal share value (QAR 0.08 per share), subject to QCB approval and shareholders’ approval at the AGM, taking the total cash dividend for the financial year 2024 to 16% of the nominal share value (QAR 0.16 per share)

• Highest-ever profitability underpinned by a persistent year-on-year growth in total income by 12%
• Group’s total assets reached QAR 117.9 billion remaining at historic levels
• The Bank successfully issued a USD 800 million 5-year senior unsecured Sukuk – the largest issue size achieved by a Qatari Islamic bank since 2020
• The Bank achieved an impressive yearly growth of 11% in financing books
• Robust CAR of 17.3%, well above the minimum statutory limits

Lusail, Qatar – 16 January 2025: Dukhan Bank (“the Bank” or “the Group” when referred to along with its subsidiaries; QSE Ticker: DUBK) announced its financial results for the year ended 31 December 2024, reporting a record net profit of QAR 1.34 billion, representing a 3% growth compared to the last year.

Key Performance Highlights

Message from the Chairman of Dukhan Bank

Commenting on the Bank’s achievements, H.E. Sheikh Mohammed Bin Hamad Bin Jassim Al-Thani, the Chairman of Dukhan Bank, said:

“We take great pride in our sustained track record of exceptional performance, a testament to our unwavering commitment to delivering unparalleled value to our customers, stakeholders, and the nation at large. Over the past year, we have ascended to unprecedented milestones, demonstrating the strength and adaptability of our business models. Despite external challenges, we have upheld institutional stability, further solidifying our position as a cornerstone of progress and innovation.

We continue our journey with a renewed focus on expanding our digital capabilities and services, investing in cutting-edge technology to enhance the customer experience and simplify banking services, making them accessible anytime, anywhere. At the same time, we remain steadfast in advancing our commitment to sustainability with consistent and deliberate steps forward.

As we look to the future with confidence and ambition, we reaffirm our commitment to building on our strengths, relentlessly pursuing new growth opportunities, fostering innovation, and delivering greater value to our stakeholders. At the same time, we aim to expand our market share while achieving responsible and sustainable growth that aligns with the needs of society and the environment.”

Analysis of Group’s financial performance

Group’s financial performance during 2024 demonstrated an execution of our strategy. The growth in bottom-line profitability was underpinned by a 11% increase in net income from financing activities, and a 14% rise in net income from investing activities, resulting in an overall rise in total income for the Group which grew by 12%.

Growth in net income from financing activities reflected positive momentum in overall volumes coupled with better yields.

Analysis of Group’s financial position

The Group’s total assets remained at historic levels at QAR 117.9 billion. Total assets primarily comprise of financing assets of QAR 86.2 billion (73% of total assets) and investment securities of QAR 19.9 billion (17% of total assets).

During this year, the Bank successfully expanded its financing assets, achieving an impressive 11% growth compared to the last year, bringing the total financing book to QR 86.2 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 to 4.6% as of December 2024 (5.4% as of December 2023). 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 improved to 73.1% (December 2023: 69.9%), reflecting the Group’s prudent approach towards managing non-performing loans.

The balance sheet is mainly funded by customer deposits, which were QAR 86.4 billion at end of the financial period. Additionally, the Bank successfully issued a USD 800 million 5-year senior unsecured Sukuk – the largest issue size achieved by a Qatari Islamic bank since 2020. The success of this transaction is reflective of the strength of the Qatari economy and Dukhan Bank’s strong credit fundamentals.

The Group's liquidity remained robust, with regulatory loans-to-deposits ratio of 98.6%. Total shareholders’ equity amounted to QAR 13.0 billion. The capital adequacy ratio (CAR) was maintained at 17.3% 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 its customers. The Bank unveiled a fresh new look to its 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 its latest advancements, it also introduced the 'Request to Pay' feature through its 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, its digital suite remains robust with services such as the Smart Kiosk for quick card issuance and its versatile Himyan cards, designed for secure payments nationwide. Its commitment to digital excellence is unwavering, as evidenced by its comprehensive integration of Apple Pay, Samsung Wallet, and Google Pay via D-Pay, and the bank’s leadership in digital card solutions with Mastercard's global Digital First Card program.

Unwavering excellent performance and prestigious awards

The past year has been marked by Dukhan Bank’s 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.

Shareholder value creation

After reviewing current year’s financial performance, with an assessment of the present and anticipated liquidity position, and considering the prevailing and future macroeconomic conditions along with the business outlook, the Board of Directors has proposed an additional cash dividend distribution of 8% of the nominal share value (equivalent to QAR 0.08 per share), subject to the approval of Qatar Central Bank and shareholders at the Annual General Assembly meeting.

The proposed dividend combined with the interim dividend takes the total dividend distribution for the financial year 2024 to 16% of nominal share value (equivalent to QR 0.16 per share).