Doha, Qatar: The Commercial Bank, its subsidiaries and associates announced yesterday its financial results for the three months ended March 31, 2025.
The Group reported a net profit before Pillar Two Tax of QR704.3m for the three months ended March 31, 2025 as compared to QR801.6m for Q1 2024.
The 12% variance was due to the increased losses of QR31.9m from Alternatif Bank in Q1 2025 as compared to the previous year and due to long-term incentive scheme (LTIS) related changes of QR84.8m. If normalized for the LTIS related changes, the adjusted net profit before tax for Q1 2025 would be lower by QR12.5m which equates a 1.7% decrease.
Due to the likely implementation of the Global Minimum Tax of 15% (Base Erosion and Profit Shifting - BEPS Pillar Two Tax), a tax charge of QR52.9m was deducted. Overall, these items resulted in a decrease in reported net profit after tax of 18.7% compared to QR801.6m in the same period last year.
Commercial Bank held its Annual and Extraordinary General Meetings on 20 March 2025, during which shareholders approved all agenda items, including the Board’s recommendation to distribute a cash dividend of QR0.30 per share.
Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman, said, “Commercial Bank continues to make strong progress towards our vision of becoming Qatar’s leading bank, delivering the world’s best client experience through innovation and digital excellence. Now in the fourth year of our five-year strategic plan (2022–2026), we remain focused on disciplined execution and long-term value creation, and strive to improve our performance in the coming months. As we build on the foundations laid over the past three years, we are fully aligned with Qatar National Vision 2030 and committed to supporting the nation’s growth while delivering exceptional service and sustainable returns to our customers and shareholders.”
Hussain Alfardan, Vice Chairman, said, “As we celebrate 50 years of banking excellence and digital innovation, Commercial Bank remains focused on driving forward-looking initiatives that support Qatar’s national ambitions and deliver lasting value. In the first quarter of 2025, we took another meaningful step by collaborating with Citi to become the first bank in Qatar to offer 24/7 USD Cross Border Transfers. This milestone enhances the speed, flexibility, and convenience of international transactions for our clients, reflecting our continued investment in cutting-edge digital solutions. It also underscores our role as a trusted enabler of Qatar’s vision to be a global leader in both finance and technology.”
Joseph Abraham, Group Chief Executive Officer, commented, “Commercial Bank delivered a resilient performance in the first quarter 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 QR651.4m, driven by strong growth in fee and other income, improved contribution from associates, and lower net provisions.
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, and enhanced wealth management. 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 QR31.9m, primarily reflecting the impact of hyperinflationary accounting and market volatility.
We remain focused on optimising the balance sheet, achieving a 1.7% increase in total assets. Further, we continue to grow our low-cost deposits, which increased by 5.7% 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 12.3% and a Capital Adequacy Ratio of 17.1% 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 first quarter 2025 reinforces our ability to adapt, innovate, and grow in a dynamic regional and global environment.”
Total assets as at 31 March 2025 reached QR169.1bn, an increase of 1.7% from 31 March 2024. This is mainly driven by an increase in loans and advances to customers and an increase in investment securities by 23.5% to reach QR34.7bn, with the Bank investing in high-quality market securities. The loans and advances to customers increased to QR94.9bn, up by 5.8% due to higher government & public sector borrowings.
Debt securities rose to QR10.5bn as the Bank diversified its funding sources. Furthermore, customer deposits is at QR76.4bn as we have strategically reduced high cost funding, while growing low-cost deposits by 5.7%, which represents 41.0% of the total customer deposits mix.
