Thursday, 21 October 2021 03:35 GMT

Dukhan Bank net profit rises 10.7% to QR585.7m in Q2


(MENAFN- The Peninsula) The Peninsula

Doha: Dukhan Bank has announced a net profit of QR585.7m for the second quarter (Q2) of 2021, representing an increase of 10.7 percent compared to the same period of last year.

The total income for the six-month period ending 30 June 2021, increased to QR1,928.9m resulting in a growth rate of 9.1 percent compared to QR1,767.2m during the same period in 2020.

The total operating income during first half of 2021 increased significantly by QR221.4m or 28.1 percent to QR1,009m from QR787.6m same period last year.

Considering strong income growth and cost reduction, more operational efficiency was achieved as evident through reduction in the cost-to-income ratio, which decreased from 32 percent to 26 percent from the same period last year.

The bank’s robust financial performance in the first half of the year has resulted in its total assets increased to QR101.9bn, representing a growth of 18.1 percent compared to 31 December 2020.

Financing assets continued to grow strongly, reaching QR78.6bn with a growth of 34.2 percent compared to December 2020. Customer deposits, which mainly supported the balance growth, have increased by 31.9 percent from December 2020 to reach QR71.1bn at end of June 2021. Shareholders’ equity raised to QR11.6bn and the total capital adequacy ratio was stable at 16 percent as of June 30, 2021 in accordance with the Basel-III requirements, while maintaining a sufficient buffer above the minimum supervisory ratio as specified by the Qatar Central Bank and Basel Standards.

Bank’s solid financial performance has been complimented through assignment of a rating of 'A’ with a stable outlook by Fitch Ratings; and“A2/Prime-1” with a stable outlook by Moody’s.

During the second quarter of 2021, Dukhan Bank added the 'My Stocks’ feature to its mobile banking application to meet its customers’ demands for online trading services. The trading service is powered by The Group Securities (licensed by the QFMA), Qatar-based online trading platform, which allows customers to view real-time market data, place buy and sell stock orders, evaluate their portfolio, and analyse market through their smartphones. With this cutting-edge feature, Dukhan Bank became the first player in the industry to integrate with a trading service enabling customers to be part of its ambitious digital transformation endeavour.

Following a remarkable investors’ demand, Dukhan Bank issued its debut Additional Tier 1 $500m Sukuk. The Sukuk is priced with a profit rate of 3.95 percent, the lowest rate for this type of issuance in the Qatari market. The issuance included more than 84 investors in more than 19 countries around the world. The books were covered 4.5 times, peaking at $2.35bn, which is a testament of the Bank’s competitive market positioning and valued reputation amongst the global investor base.

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