Dukhan Bank Reports Continued Reduction in Financing Costs, Supporting Earnings Growth in 2025

• Dukhan Bank experiences remarkable drop in net income from financing activities, with a notable decline of 8% year over year. Additionally, net income from investing activities also shows a decline, dropping by 5% compared to 2024.

• Company’s shares declined by a notable 5% during  2025.

• Despite the remarkable adverse impact of the drop in financing and investing income, reduced financing costs acted in a positive direction and the company increased net profit by 3%.

In 2024, Dukhan Bank's stock price faced a notable decline of 5%, dropping from 3.695 riyals per share at the beginning of the year to 3.496 riyals per share by year-end. Insider trade in 2025 recorded a notable amount, amounting to 22 million QAR.

Here are the key numbers:

● Net income from financing activities: 4,776 million QAR vs. 5,190 million QAR in 2024 (a 8% YoY decline).

● Net income from investment activities: 1,035 million QAR vs. 1,089 million QAR in 2024 (a 5% YoY decline).

● Net Profit: 1,411 million QAR vs. 1,343 million QAR in 2024 (a 5% YoY increase).

● Earnings per Share: 0.257 QAR/share vs. 0.244 QAR/share in 2024 (a 5% YoY increase).

● Dividend per Share: 0.160 QAR/share, the same amount as in 2024. In 2025 dividends were paid in two semi-annual tranches.

Dukhan Bank achieved a notable improvement in its operating income ratio relative to the returns provided to unrestricted investment account holders, increasing from 1.41 in 2024 to 1.53 in 2024. This growth highlights the bank's ability to navigate challenging global macroeconomic conditions, which stabilized borrowing costs during 2025. 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 (414 million QAR) and investing activities (54 million QAR). However, these losses were offset by a 524 million QAR adverse impact resulting from reduced returns to investment account holders.

Other drivers led to lower changes in net profit compared to 2024. Commissions and fees made a positive impact of 70 million QAR, while impairments made an adverse impact amounting to 21 million QAR.

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