Impairment Reversals Drive Doha Bank’s Q3 2025 Profit Growth Despite Pressure on Interest Income

• The company's interest income declined by 3% year over year, but the net interest income margin experienced an improvement.

• Doha Bank’s shares increased as much as 28% during the first nine months of 2025.

• Net profit was pushed up by the improvement in interest margin, reduced impairments, and an increase in income from commissions and fees.

Doha Bank's stock demonstrated impressive performance in the first nine months of 2025, starting the year at 1.99 riyals per share and closing the first half of the year at 2.55 riyals per share, reflecting a substantial 28% increase in value. This performance significantly outperformed the Qatar Stock Exchange (QSE) Index, which saw an approximate 2% increase over the same period. Furthermore, insider confidence in the bank was evident, with insiders purchasing shares worth 31 million QAR during this time. This combination of price appreciation and insider activity highlights investor confidence and the bank's potential for sustained growth.

Here are the key numbers:

● Interest Income: 4,633 million QAR vs. 4,795 million QAR in Q3 2024 (a 3% YoY decline).

● Net Interest Income: 1,514 million QAR vs. 1,516 million QAR in Q3 2024 (a minor YoY decline).

● Net Profit: 745 million QAR vs. 690 million QAR in Q3 2024 (an 8% YoY increase).

● Earnings per Share: 0.240 QAR/share vs. 0.220 QAR/share in Q3 2024 (a 9% YoY increase).

Doha Bank experienced an improvement in its net interest margin, which increased from 32% in Q3 2024 to 33% in Q3 2025. This decline is primarily attributed to the impact of declining global interest rates, which lowered borrowing costs at a pace exceeding the decline of interest income. On the other hand, the company faced a 3% decline in interest income, likely from the same reason.

Against the backdrop of a challenging macroeconomic environment and mounting concerns regarding an impending recession, the banking sector faced heightened credit risk. However, Doha Bank strategically opted to reduce impairments to a lower amount than in Q3 2024.

The impact of this decision became evident in the company's financial performance for Q3 2025, showcasing a positive impact on profit of 143 million QAR compared to the previous year.

During the first nine months of 2025, the company experienced a decline in gains from investment activities, which exerted a significant negative impact on profitability, reducing net profit by QAR 46 million. In addition, higher staff expenses further weighed on results, with an adverse effect of QAR 27 million. Conversely, improved performance in commissions and fees partially offset these pressures, contributing a positive impact of QAR 15 million to net profit.

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