Latest news with #CommercialBank
Qatar Tribune
16-07-2025
- Business
- Qatar Tribune
Commercial Bank reports QR1.26 bn net profit for H1 amid strategic growth, global tax impact
Tribune News Network Doha The Commercial Bank, its subsidiaries and associates (Group), on Wednesday announced a net profit of QR1,261.4 million for the first half of 2025, reflecting its continued resilience and commitment to long-term value creation, despite new global tax regulations and marketvolatility. The Group reported a net profit before the application of the new BEPS Pillar Two tax at QR1,374.2 million for the six months ended 30 June 2025, down 12.5 percent from QR1,571 million during the same period in 2024. The decline was primarily attributed to increased losses from its Turkish subsidiary, Alternatif Bank, which widened by QR104.2 million, and changes related to long-term incentive schemes (LTIS), amounting to QR35.9 million. Adjusting for LTIS, the normalised net profit before tax stood at QR1,410.1 million. With the implementation of the 15 percent global minimum top-up tax under the OECD's Base Erosion and Profit Shifting (BEPS) Pillar Two framework, the Group incurred a tax charge of QR112.9 million. Consequently, the net profit after tax declined to QR1,261.4 million in H1 2025, compared to QR1,571 million in H1 2024. Commercial Bank Chairman Sheikh Abdulla bin Ali bin Jabor Al Thani said the bank had made significant progress on its five-year strategic plan (2022–2026), especially in digital innovation, client experience, and operational efficiency. 'As we approach the final stretch of our strategy, our focus remains on disciplined execution, delivering sustainable value, and aligning with Qatar National Vision 2030,' he said. Vice Chairman and Managing Director Omar Hussain Alfardan highlighted the reaffirmation of the bank's credit ratings and a share buyback plan as testaments to investor confidence and the bank's robust fundamentals. 'The Board approved a share buyback plan of up to 10 percent of issued shares in May 2025, subject to regulatory approval. This aligns with our strategic goal of enhancing shareholder value and capital efficiency,' he said. In June, the bank successfully issued a QR500 million senior unsecured bond under its EMTN programme, further diversifying its funding base. The period also saw the launch of a new corporate mobile banking app, which earned the 'Best Mobile Banking App – Qatar 2025' award from International Finance. Commercial Bank Group CEO Joseph Abraham said the bank's performance in H1 2025 was driven by a strategic focus on diversified income sources, with total assets growing 13.2 percent year-on-year to QR182.1 billion. 'Our non-interest income grew 1.9 percent year-on-year, led by higher fee and commission-based income across transaction banking, cards, wealth management, and investments,' Abraham said. Loans and advances to customers rose by 12.7 percent to QR103.8 billion, supported by growth in the corporate, government, and retail sectors. Investment securities increased by 26 percent to QR35.8 billion, with the bank locking in yields through high-quality investments. Customer deposits reached QR83.5 billion, with low-cost deposits growing 10.2 percent and now constituting 42.1 percent of the deposit mix. Debt securities increased to QR11.4 billion, underscoring efforts to diversify funding. Net provisions declined by 30.8 percent to QR244.1 million, reflecting recoveries and reversals. The ratio of non-performing loans to gross loans improved to 5.5 percent from 5.9 percent a year earlier, while the loan coverage ratio stood at a healthy 87.9 percent. Alternatif Bank, the Group's Turkish subsidiary, reported a loss of QR107.1 million, driven by hyperinflationary accounting and market volatility. Despite higher costs from digital innovation and operations in Turkey, the Group maintained a strong capital base. The Common Equity Tier 1 (CET1) ratio was 12.5 percent, while the Capital Adequacy Ratio (CAR) stood at 17.2 percent — both well above Qatar Central Bank and Basel III requirements. From January 1, 2025, the Group began accruing the BEPS Pillar Two tax as per the OECD's Global Anti-Base Erosion (GloBE) rules, which seek to ensure that multinational enterprises are taxed at a minimum effective rate of 15 percent across all jurisdictions. The tax led to an incremental cost of QR112.9 million in the first half of the year. In a move to enhance shareholder returns, the Group's board has approved a share buyback programme of up to 10 percent of fully paid-up issued shares. The programme awaits regulatory approval from Qatar Central Bank (QCB) and Qatar Financial Markets Authority (QFMA). Looking ahead, Abraham said the bank remains committed to executing its strategic priorities while continuing to support Qatar's sustainable development goals. 'We are well positioned to adapt, innovate, and grow in a dynamic environment. Our performance in H1 2025 reflects strong fundamentals, prudent capital management, and a clear roadmap for long-term value creation,' heconcluded.
Qatar Tribune
14-07-2025
- Business
- Qatar Tribune
CB named best performing bank in Qatar by The Banker's ranking
Tribune News Network Doha Commercial Bank, a leading financial institution in Qatar renowned for its cutting-edge digital banking capabilities, has been recognised as the Best Performing Bank in Qatar in The Banker magazine's prestigious Top 1000 World Banks Rankings 2025. The bank also earned a prominent distinction as one of the top 3 highest movers in the Middle East, reflecting its exceptional year-on-year growth in performance and strategic execution. Published annually, The Banker's Top 1000 World Banks is the most authoritative and comprehensive global ranking of financial institutions, widely regarded as the definitive benchmark for international banking excellence. Rankings are determined based on audited year-end financials, with a particular emphasis on Tier 1 capital strength — a critical measure of a bank's financial stability and resilience. Recognition in this index signifies both operational soundness and sustained performance on a global scale. Commercial Bank Group Chief Executive Officer Joseph Abraham expressed pride at the announcement, calling it a major milestone in the bank's ongoing journey. 'This recognition marks a significant milestone in our journey and stands as a strong testament to the bank's solid capital foundation, disciplined strategic execution, and operational resilience,' he said. 'It reflects the collective dedication of our team, the trust of our clients, and the continued support of our stakeholders. We are proud to represent Qatar on the global stage and to be ranked among the region's top-performing banks. This achievement further reinforces our commitment to delivering sustainable value and driving long-term growth.' The 2025 edition of The Banker rankings, based on audited financial results as of 31 December 2024, is particularly significant as it is the first to incorporate end-of-year data reflecting the latest performance metrics from banks around the world. Commercial Bank's appearance at the top of the national rankings and among the highest climbers regionally is indicative of its robust fundamentals and dynamic adaptability in a challenging and competitive financial landscape. The accolade also highlights the strategic progress made by the bank across a range of critical areas. Commercial Bank has been at the forefront of Qatar's digital banking revolution, investing heavily in artificial intelligence, data analytics, and customer-centric platforms to improve service delivery and operational efficiency. Its focus on innovation has allowed it to meet evolving customer expectations while maintaining strict standards of risk management and financial governance.
Zawya
09-07-2025
- Business
- Zawya
Qatar's banks stand out with exceptional capital adequacy ratio
DOHA: Qatari banks stand out with their exceptional capital adequacy ratios and strong provision coverage. Also, Qatari companies enjoy robust balance sheets backed by low leverage and decent Return on Equity. In its QSE 2Q 2025 Earnings Preview released yesterday, QNB Financial Services (QNBFS) said, 'We expect Q2 2025 earnings to rise 3.6% and 1.3% year-on-year (YoY) and quarter-on-quarter (QoQ) respectively.' 'We see most of the growth coming from non-bank earnings, expected to rise 6.9% and 2.4% YoY and QoQ respectively as banks increase earnings by 0.7% and 0.4%.' 'We remain constructive on Qatari equities as the mainstay LNG anchors the Qatari economy/equities directly/indirectly, augmented by ramping up of the North Field project, including the upgraded capacity expansion target – a significant portion of Qatar's expected annual LNG capacity increase is already signed-off in long-term supply contracts,' it added. The preview noted that Doha Bank and Commercial Bank followed Qatar National Bank and Industries Qatar in announcing/implementing share buybacks; interim dividends and IPOs/listings could add further momentum. With several Qatar Stock Exchange (QSE) companies boasting strong balance sheets but beset with lower valuations, 'we are beginning to see new initiatives aimed at enhancing shareholder value. QNB Group approved a QR2.9bn share buyback program in September 2024 – it has bought back more than 116 million shares by 24 June 2025. This was followed by Industry Qatar's announcement of a QR1bn share buyback program in February 2025.' During Q2, 2025 Commercial Bank and Dukhan Bank also announced their intentions to buy back up to 10% of each bank's respective outstanding shares. More companies could also follow the share buyback initiative. Moreover, new rules allowing the distribution of interim dividends by QSE-listed firms could further enhance Qatar's appeal to local and foreign investors. Continued government efforts to grow and diversify the economy provides another platform for more companies to grow their earnings, with the latest June 2025 PMI at 52.0, confirming uninterrupted expansion in the non-oil economy since the beginning of 2024. According to the Bloomberg consensus, Qatar's GDP is expected to grow by 2.6% this year, up from 2.4% in 2024. The QSE climbed 5% in Q2 2025 (Q1 2025: -3.2%), markedly outperforming the regional index that edged lower by 0.5% in Q2 2025 (Q1 2025: +0.8%). Overall, foreign institutions (excluding GCC/Arab investors) turned bullish during 2Q2025 with a net buying positing of $325m of Qatari equities versus $328m net short in Q1 2025. It further stated, over the medium- to long-term, the North Field Gas Expansion, a nascent but growing tourism/sporting sector and QNV2030 investments to make Qatar an advanced economy, will continue to be major growth drivers for our companies. The demand for Qatar's gas should remain strong for the foreseeable future on the back of geopolitical developments, specifically in Europe, with demand for LNG expected to peak between mid-2030s and mid-2040s. With the successful hosting of the World Cup, perceived as one of the best editions and putting Qatar in the global spotlight, we are of the view that pockets of the Qatari stock market should benefit from this success. © Dar Al Sharq Press, Printing and Distribution. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
08-07-2025
- Business
- Zawya
Commercial Bank, QDB sign co-operation agreement to support SMEs in Qatar
Qatar - The agreement aims to enhance the banking and advisory ecosystem available to local businesses by combining the strengths and expertise of both institutions. As part of this initiative, the two entities will jointly offer a suite of value-added services tailored to SMEs, including advisory support in financial planning, marketing, succession planning, feasibility studies, restructuring, and risk management. Commercial Bank, a leader in innovative digital banking solutions, has entered into a strategic co-operation agreement with Qatar Development Bank (QDB) to empower and support small and medium-sized enterprises (SMEs) in Qatar. The agreement aims to enhance the banking and advisory ecosystem available to local businesses by combining the strengths and expertise of both institutions. As part of this initiative, the two entities will jointly offer a suite of value-added services tailored to SMEs, including advisory support in financial planning, marketing, succession planning, feasibility studies, restructuring, and risk management. Additionally, a jointly agreed calendar of workshops will be held throughout the year at either Commercial Bank's or Qatar Development Bank's premises, further supporting SME development and growth. Commenting on the collaboration, Fahad Badar, Executive General Manager and Chief Wholesale and International Banking Officer of Commercial Bank, said: 'This collaboration with QDB reflects our shared vision to cultivate a thriving SME ecosystem in Qatar. Through comprehensive advisory services and knowledge-sharing sessions, we are not only investing in the future of businesses but contributing meaningfully to the development goals of Qatar's 2030 National Vision.' Dr Hamad Salem Mejegheer, Executive Director, SME Development at Qatar Development Bank (QDB), emphasised the significance of the agreement, stating: 'Through this collaboration with our partners at Commercial Bank, we aim to harness our collective expertise to deliver greater impact in entrepreneurship, particularly in supporting SMEs, which form a cornerstone of Qatar's economic development. This agreement represents a new step toward achieving our strategy to enhance and develop the local enterprises, in alignment with the Third National Development Strategy of the State of Qatar (2024–2030).' © Gulf Times Newspaper 2022 Provided by SyndiGate Media Inc. (
Qatar Tribune
07-07-2025
- Business
- Qatar Tribune
Commercial Bank signs agreement with QDB to empower SMEs in Qatar
Tribune News Network Doha In a significant move aimed at strengthening Qatar's small and medium-sized enterprise (SME) sector, Commercial Bank has signed a strategic cooperation agreement with Qatar Development Bank (QDB) to deliver comprehensive support forlocal businesses. Commercial Bank, known for its leadership in innovative digital banking solutions, will work closely with QDB to enhance the financial and advisory ecosystem available to SMEs across the country. The collaboration is designed to empower entrepreneurs by leveraging the combined resources, expertise, and networks ofboth institutions. As part of this initiative, SMEs in Qatar will benefit from a wide array of value-added services, including advisory support in areas such as financial planning, marketing, succession planning, feasibility studies, restructuring, and risk management. The partnership also includes a jointly developed calendar of workshops to be conducted throughout the year at either Commercial Bank or QDB premises, offering hands-on support and knowledge-sharing opportunities for business owners and aspiring entrepreneurs. Commenting on the partnership, Commercial Bank EGM, Chief Wholesale and International Banking Officer Fahad Badar said, 'This collaboration with QDB reflects our shared vision to cultivate a thriving SME ecosystem in Qatar. Through comprehensive advisory services and knowledge-sharing sessions, we are not only investing in the future of businesses but contributing meaningfully to the development goals of Qatar's 2030 National Vision.' Qatar Development Bank Executive Director of SME Development Dr Hamad Salem Mejegheer also highlighted the strategic importance of the agreement. 'Through this collaboration with our partners at Commercial Bank, we aim to harness our collective expertise to deliver greater impact in entrepreneurship, particularly in supporting SMEs, which form a cornerstone of Qatar's economicdevelopment. This agreement represents a new step toward achieving our strategy to enhance and develop local enterprises, in alignment with the Third National Development Strategy of the State of Qatar (2024–2030),' he said. The agreement underscores the critical role that SMEs play in Qatar's economic diversification efforts and national development priorities. By providing entrepreneurs with the right tools, knowledge, and financial guidance, the partnership is expected to create new opportunities for innovation, growth, and sustainable enterprise development in the country.
