Dukhan Bank Posts QR1.34Bn Net Profit In 2024 Reflecting 3% Annual Growth

(MENAFN- Gulf Times) Dukhan bank has reported a net profit of QR1.34bn in 2024, representing a 3% growth compared to the previous year.
Dukhan Bank chairman sheikh Mohammed bin Hamad bin Jassim al-Thani said,“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.”
He added:“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.”
Growth in bottom-line profitability was underpinned by an 11% increase in net income from financing activities and a 14% rise in net income from investing activities, resulting in an overall increase 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.
The group's total assets remained at QR117.9bn. Total assets primarily comprise financing assets of QR86.2bn (73% of total assets) and investment securities of QR19.9bn (17% of total assets).
During 2024, the bank successfully expanded its financing assets, achieving an impressive 11% growth compared to the last year, bringing the total financing book to QR86.2bn. This underscores the bank's strategic intent to increase its market share, while ensuring efficient and balanced resource allocation.
Building on this strong performance, non-performing loan (NPL) ratio improved, decreasing to 4.6% as of December 2024 (5.4% in 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 stood at QR86.4bn at the end of the financial period. Additionally, the bank successfully issued an $800mn, five-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 QR13.0bn. 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.
After reviewing the 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 QR0.08 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 QR0.16 per share).

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