Dukhan Bank H1 2025: Higher Net Financing and Investing, Along with Better Commissions, Boosts Net Profit

• Dukhan Bank experiences a remarkable drop in net income from financing activities, with a notable decrease of 5% year over year. Additionally, net income from investing activities also shows a decline, dropping by 10% compared to H1 2024.

• Company’s shares declined by 2% during  H1 2025.

• Despite the remarkable adverse impact of a drop in net income from financing and investing activities, thanks to the reduction in investment accounts and improved commissions and fees, the company increased net profit by 3%.

In H1 2025, Dukhan Bank's stock price faced a decline of 2%, dropping from 3.695 riyals per share at the beginning of the year to 3.638 riyals per share by H1 end. This underperformance was significant compared to the broader QSE index, which recorded an increase of approximately 2%.

Here are the key numbers:

● Net income from financing activities: 2,436 million QAR vs. 2,571 million QAR in H1 2024 (a 5% YoY decline).

● Net income from investment activities: 504 million QAR vs. 558 million QAR in H1 2024 (a 10% YoY decline).

● Net Profit: 811 million QAR vs. 784 million QAR in H1 2024 (a 3% YoY decline).

● Earnings per Share: 0.149 QAR/share vs. 0.144 QAR/share in H1 2024 (a 3% YoY decline).

● Dividend per Share: 0.08 QAR/share, the same as in H1 2024 (no YoY change).

Dukhan Bank achieved a notable improvement in its operating income ratio relative to the returns provided to unrestricted investment account holders, increasing from 1.38 in H1 2024 to 1.47 in H1 2025. This growth highlights the bank's ability to navigate challenging global macroeconomic conditions, which stabilized borrowing costs during 2024. Additionally, it underscores the bank's effective asset management strategies, contributing to the enhanced financial performance and operational efficiency during the year.

In summary, the net profit experienced negative influences from financing activities (135 million QAR) and investing activities (54 million QAR). However, these losses were offset by a 216 million QAR positive impact resulting from decreased returns to investment account holders, which made a positive impact of 216 million QAR.

An increase in income from commissions and fees contributed positively to the net profit, amounting to 50 million QAR. On the expense side, impairments and staff expenses had an adverse impact on the net profit, amounting to 9 million QAR and 15 million QAR, respectively.

For more comprehensive information, please refer to the reliable financial information source, http://sahmik.com.