DOHA: The Commercial Bank, its subsidiaries and associates (“Group”) announced yesterday its financial results for the six months ended June 30 2025.
The Group reported a net profit before Pillar Two Tax of QR1,374.2m for the six months ended June 30 2025 as compared to QR1,571.0m for H1 2024. The 12.5% variance was primarily due to an increased loss from Alternatif Bank by QR104.2m and long-term incentive scheme (LTIS) related changes of QR35.9m.
If normalized for the LTIS related changes, the adjusted net profit before Pillar Two Tax for H1 2025 would be QR1,410.1m. Excluding these items the core operating income remains strong supported by combination of both higher lending and incremental fees and other income.
Due to the likely implementation of the Global Minimum Top-up Tax of 15% (Base Erosion and Profit Shifting - BEPS Pillar Two Tax), a tax charge of QR112.9m was deducted. Overall, these items resulted in a decrease in reported net profit after tax of QR1,261.4m compared to QR1,571.0m in the same period last year.
Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman, said, “In the first half of 2025, Commercial Bank has accelerated progress across the core pillars of our five-year strategy, delivering measurable impact in digital innovation, client experience, and operational efficiency. As we enter the final stretch of our 2022–2026 plan, our focus remains on disciplined execution, delivering sustainable value, and deepening our alignment with Qatar National Vision 2030. We remain fully committed to supporting the country’s economic ambitions while continuing to raise the bar in service excellence, innovation, and long-term shareholder returns.”
Omar Hussain Alfardan, Vice Chairman and Managing Director, said, “Commercial Bank sustained strong momentum in H1 2025, with major credit rating agencies reaffirming their ratings, reflecting continued confidence in the Bank’s capital strength, liquidity, and profitability. In May, the Board of Directors approved a Share Buyback plan of up to 10% of the Bank’s fully paid-up issued shares, subject to regulatory approval. This strategic initiative reflects our focus on enhancing shareholder value, capital efficiency, and superior returns on equity.
In June, we further diversified our funding base through a successful QR500m senior unsecured bond issuance under our EMTN programme. We also advanced our digital leadership with the launch of a new Corporate Mobile Banking App and were recognised by International Finance as “Best Mobile Banking App – Qatar 2025”. Sustainability remains a core priority, with a focus on a number of sustainability initiatives, as we continue to deliver long-term value to clients and stakeholders.”
Joseph Abraham, Group Chief Executive Officer, commented, “Commercial Bank delivered a strong performance in the first half of 2025, reflecting disciplined execution of our strategy and a continued focus on long-term value creation. The Bank reported a consolidated net profit after tax of QR1,261.4m, driven by strong growth in fee and other income, higher dividends from investments and improved contribution from associates.
Our strategic focus on diversifying income streams continues to yield results, with total fee and other income increasing year-on-year, supported by robust performance in transaction banking, growing cards portfolio, enhanced wealth management, and well managed investments portfolio. This helped offset pressure on net interest income to an extent, which was impacted from a downwards interest rate revisions. Meanwhile, our subsidiary in Turkey, Alternatif Bank, reported a loss of QR107.1m, primarily reflecting the impact of hyperinflationary accounting and market volatility.
We remain focused on optimising the balance sheet, achieving a 13.2% increase in total assets. Further, we continue to grow our low-cost deposits, which increased by 10.2% year on year, reflecting our efforts to diversify funding sources and strengthen balance sheet resilience. Our capital position remains robust, with a CET1 ratio of 12.5% and a Capital Adequacy Ratio of 17.2% as we continue to support growth while maintaining prudent capital levels in line with our guidance.
Looking ahead, we are committed to delivering value for our stakeholders by executing on our strategic priorities, advancing sustainable finance, and supporting Qatar’s National Vision 2030. Our performance in six months 2025 reinforces our ability to adapt, innovate, and grow in a dynamic regional and global environment.”
Total Assets as at June 30 2025 reached QR182.1bn, an increase of 13.2% from June 30 2024. This is mainly driven by an increase in loans and advances to customers and an increase in investment securities. The investment securities increased by 26.0% to reach QR35.8bn, with the Bank investing in high-quality market securities supporting the moves to lock in yields.
