19/01/2026 10:28 AST
Commercial Bank has reported net profit of QR2.2bn in 2025 and recommended 30% cash dividend.
The core income momentum remained "positive", supported by growth in balance sheet. The financials and proposed dividend distribution are subject to the Qatar Central Bank's approval and endorsement by shareholders at the group's annual general meeting.
Net interest income rose by 2.9% to QR3.41bn, and the group continued to grow core net fee and commission-based income, with fees and other income increasing by 10.8% to QR1.37bn.
Total assets were up 16.4% year-on-year to QR192.9bn at the end of December 31, 2025. This is mainly driven by an increase in loans and advances to customers and an increase in investment securities.
Investment securities grew 21.3% to QR40.3bn with the group investing in high-quality market securities. Net Loans and advances to customers increased to QR104.5bn, up 14.3% due to higher corporate, government and public sector, retail lending and acceptances. Excluding acceptances, which are trade related items, the loan growth is about 5.7%.
However, the group net earnings fell 27.3% on an annualised basis, reflecting higher net provisions, increased operating expenses including IFRS 2 related long term incentive scheme (LTIS) movements, and a reported loss of QR144.7mn from its Turkish subsidiary including the impacts of hyper-inflation.
The group also accrued for BEPS (Base Erosion and Profit Shifting) Pillar Two Tax, a charge of QR179.4mn. It may benefit from certain available reliefs on the finalisation of the draft executive regulations which is now expected in 2026.
Net provisions were at QR1.19bn supported by strong recoveries which increased by 18.3% to QR711.8mn.
Regarding core businesses, its retail and wealth business continues to deliver good and consistent returns. On the wholesale banking side, despite a challenging year, its lending book grew whilst it also continued to focus on transaction banking services.
The associates continued to perform well as it continues to work closely with them in the execution of their strategies. The performance at Alternatif Bank in Turkiye improved at operating profit level.
"2025 marked a year of disciplined execution and continued balance-sheet resilience across loans and investment securities. The group delivered positive momentum in core income and asset growth, underpinned by prudent governance and robust risk management framework," said Sheikh Abdulla bin Ali bin Jabor al-Thani, Commercial Bank chairman.
Customer deposits grew 16.2% year-on-year to QR89.4bn in 2025 as the bank focused on reducing high cost of funding, while growing low-cost deposits by 4.5%, which represents 37% of the total customer deposits mix.
Debt securities and other borrowings in issue increased to QR13.3bn and QR27.4bn respectively, as the group diversified its funding sources.
The group's Common Equity Tier 1 (CET 1) ratio was at 12.2%. The capital adequacy ratio (CAR) increased to 17.6%.
Omar Hussain Alfardan, vice-chairman and managing director, said in 2025, the group delivered steady operating profit growth, with positive contributions from all entities.
"We strengthened our franchise through enhanced customer propositions, expanded fee-based income streams, and value-added services. In parallel, we advanced targeted innovation and capability building, while reinforcing our long-term commitment to sustainability and national talent development," he added.
Gulf Times
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