Dukhan Bank Q3 2025: Profit Rises as Lower Investment Account Costs Offset Decline in Financing and Investing Income

• Dukhan Bank experiences a remarkable drop in net income from financing activities, with a notable decrease of 7% year over year. Additionally, net income from investing activities also shows a decline, dropping by 8% compared to Q3 2024.

• Company’s shares declined by 4% YTD since the end of Q3 2025. Taking into account QSE index increase of 4% during the same period, this is remarkable underperformance

• 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 4%.

During the first three quarters of 2025, Dukhan Bank’s stock price declined by 4%, falling from 3.695 riyals per share at the beginning of the year to 3.546 riyals per share by the end of Q3 2025. This underperformance was notable compared to the broader QSE Index, which rose by approximately 2% over the same period. During this time, the company also reported a significant insider sale totaling QAR 22 million.

Here are the key numbers:

● Net income from financing activities: 3,619 million QAR vs. 3,897 million QAR in Q3 2024 (a 7% YoY decline).

● Net income from investment activities: 769 million QAR vs. 837 million QAR in Q3 2024 (an 8% YoY decline).

● Net Profit: 1,192 million QAR vs. 1,141 million QAR in Q3 2024 (a 4% YoY decline).

● Earnings per Share: 0.215 QAR/share vs. 0.206 QAR/share in Q3 2024 (a 4% YoY decline).

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 Q3 2024 to 1.52 in Q3 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 (277 million QAR) and investing activities (68 million QAR). However, these losses were offset by a 416 million QAR positive impact resulting from decreased returns to investment account holders.

An increase in income from commissions and fees contributed positively to the net profit, amounting to 77 million QAR. On the expense side, impairments and staff expenses had an adverse impact on the net profit, amounting to 88 million QAR and 17 million QAR, respectively.

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