REG - Commercial Bk Qatar - Annual Financial Report

Commercial Bank PSQCAnnouncement

22/01/2026 17:00

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RNS Number : 9384P  Commercial Bank of Qatar (Q.S.C.)  22 January 2026

 

 

PRESS RELEASE

 

 

The Commercial Bank (P.S.Q.C.)

Financial Results

For The Year Ended

31 December 2025

 

 

 

The Commercial Bank (P.S.Q.C.) Reports Financial Year 2025

Net Profit Before Pillar Two Tax of QAR 2,384.4 million

 

Key Highlights

·   Net Profit before the impact of Pillar Two Tax of QAR 2,384.4 million,
down by 21.4% as compared to the year ended 31 December 2024.

·    Net Profit after Tax of QAR 2,204.9 million, down by 27.3% as
compared to the year ended 31 December 2024.

·    Total Assets of QAR 192.9 billion, up by 16.4% from 31 December 2024.

·    Loans and Advances to Customers excluding Acceptances of QAR 96.1
billion, up by 5.7% from 31 December 2024.

·    Customer Deposits of QAR 89.4 billion, up 16.2% from 31 December
2024.

·    Strong Capital Adequacy Ratio at 17.6% (post adjusting for proposed
dividends).

·    Total Equity of QAR 27.0 billion, up by 2.5% from 31 December 2024.

·    S&P Global Ratings affirms Commercial Bank's issuer credit rating
at 'A-/A-2' with Stable outlook.

 

Doha, Qatar, 18 January 2026:

The Commercial Bank (P.S.Q.C.) (the "Bank") and its subsidiaries (the "Group")
announced today its financial results for the year ended 31 December 2025.

http://www.rns-pdf.londonstockexchange.com/rns/9384P_1-2026-1-22.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9384P_1-2026-1-22.pdf)

The Group reported Net Profit before Pillar Two Tax of QAR 2,384.4 million for
FY 2025, down from QAR 3,032.1 million in FY 2024. Core income momentum
remained positive supported by growth in balance sheet.

The year-on-year decline in profit primarily reflected higher net provisions,
increased operating expenses including IFRS 2 related long term incentive
scheme (LTIS) movements, and a reported loss of QAR 144.7 million from our
Turkish subsidiary including the impacts of hyper-inflation.

On a normalized basis excluding the LTIS related movements, the adjusted Net
Profit before Pillar Two Tax for the year ended 31 December 2025 is QAR
2,424.6 million.

The Group also accrued for BEPS (Base Erosion and Profit Shifting) Pillar Two
Tax, a charge of QAR 179.4 million. The Group may benefit from certain
available reliefs on the finalisation of the draft executive regulations which
is now expected in 2026.

In relation to our core businesses, our retail and wealth business continues
to deliver good and consistent returns. On the wholesale banking side, despite
a challenging year, our lending book grew whilst we also continued our focus
on transaction banking services. Our associates continued to perform well as
we continue to work closely with them in the execution of their strategies.
 Performance at Alternatif Bank in Turkey improved at operating profit level.

The Board of Directors proposed a dividend distribution to shareholders of QAR
0.30 per share i.e. 30.0% of the nominal share value.

The financials and proposed dividend distribution are subject to Qatar Central
Bank approval and endorsement by shareholders at the Group's Annual General
Meeting.

 

Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman, said,

"2025 marked a year of disciplined execution and continued balance-sheet
resilience across loans and investment securities. The Group delivered
positive momentum in core income and asset growth, underpinned by prudent
governance and robust risk management framework. Importantly, all three major
credit-rating agencies affirmed Commercial Bank's strong credit profile,
reinforcing our trajectory of safe, sustainable growth and long-term value
creation in alignment with Qatar National Vision 2030. With the appointment of
our new Group CEO, Stephen Moss, in the second half of 2025, the Group is well
positioned to build on its strong foundations and advance into the next phase
of its strategy."

 

Mr. Omar Hussain Alfardan, Vice Chairman and Managing Director, said,

"In 2025, the Group delivered steady operating profit growth, with positive
contributions from all entities. We strengthened our franchise through
enhanced customer propositions, expanded fee-based income streams, and
value-added services. In parallel, we advanced targeted innovation and
capability building, while reinforcing our long-term commitment to
sustainability and national talent development. As we enter 2026 and the next
phase of our strategy, our priorities are clear: expanding resilient revenue
streams, managing risk and cost control."

Mr. Stephen Moss, Group Chief Executive Officer, commented,

"Since joining Commercial Bank in August 2025, our focus has been on working
to strengthen our capital efficiency, credit quality, and operational
discipline.  We have also been preparing for the next phase of our
strategy.  By engaging closely with our clients, staff, regulators, and
shareholders, we have shaped a refreshed vision and strategic priorities for
2026-2030, positioning the Group for sustainable growth and long-term value
creation."

 

Our refreshed strategy for long-term, safe and sustainable growth

 

The Group has launched its refreshed 2026-2030 strategy, reinforcing its
ambition to be Qatar's banking partner of choice - creating enduring value for
customers, employees, and shareholders.

Rooted in disciplined credit underwriting, provisioning, capital efficiency,
and continuous innovation, the strategy aims to build a stronger, more
balanced and sustainably profitable franchise, with a resilient business mix
and a focus on core client segments. The Group will prioritize long-term value
creation through high-quality earnings and strong credit fundamentals across
the cycle.

Wholesale: Deepening Client Relationships and Scaling Fee Income

The Group will focus wholesale growth on higher-return client segments and
strategic sectors, while continuing to invest in its transaction banking and
trade finance capabilities. A key objective is to rebalance the revenue mix by
accelerating capital-light, fee-based income and scaling product penetration.

Retail: Strengthening Market Position and Diversifying Profit Pools

In Retail, the Group aims to deepen its presence in Qatari customer segments
while maintaining leadership in the expat and employee banking markets. The
Group will continue to invest in its core retail franchises - cards,
remittances, and digital wealth - with a focus on cross-sell and deepening
long-term relationships.

Enablers: Investing in Digital, Innovation, and Talent

Execution will be supported by strategic enablers. The Group will modernize
its core platforms and continue expanding the use of AI, automation, and
data-driven decision-making to drive productivity and agility. It will also
accelerate digital onboarding and servicing, while aiming to maintain its
leadership in mobile-first banking.

Talent and culture remain central to the strategy. In the next phase of our
strategy the Group will work on simplifying its organizational model,
investing in future-critical skills, and fostering a performance-driven,
collaborative culture to enable sustained transformation and profitability.

 

 

2025 Financial Highlights

Key indicators of the financial results for the year ended 31 December 2025
are as follows:

 QAR million                                December     December     Change %

2025
2024

 Total Assets                               192,912.7    165,677.8    16.4%
 Loans and Advances to Customers            104,547.5    91,480.0     14.3%
 Customer Deposits                          89,445.4     77,006.8     16.2%
 Total Equity                               27,013.5     26,353.6     2.5%

 Net Operating Income                       4,786.1      4,556.0      5.1%
 Operating Expenses                          (1,411.2)    (1,273.2)   (10.8%)
 Operating Profit                           3,375.0      3,282.9      2.8%
 Net Provisions                             (1,193.3)    (467.2)      (155.4%)
 Share of Results of Associates             406.4        329.7        23.2%
 Net Monetary Losses Due to Hyperinflation  (131.2)      (131.8)      0.4%
 Income Tax (Expense) / Credit              (72.4)       18.4         (493.0%)
 Net Profit Before BEPS Pillar Two Taxes    2,384.4      3,032.1      (21.4%)
 BEPS Pillar Two Taxes                      (179.4)      -            (100.0%)
 Net Profit after Tax                       2,204.9      3,032.1      (27.3%)

 

 Key Performance Indicators          December  December
                                     2025      2024

 Cost to Income Ratio                29.5%     27.9%
 Cost of Risk - COR (bps) - gross    148       102
 Cost of Risk - COR (bps) - net      75        36
 Non-Performing Loan (NPL) Ratio     6.1%      6.2%
 Loan Coverage Ratio - Stage 3       60.4%     52.8%
 Common Equity Tier 1 (CET 1) Ratio  12.2%     12.3%
 Capital Adequacy Ratio (CAR)        17.6%     17.2%

 

Balance sheet

Total Assets as at 31 December 2025 reached QAR 192.9 billion, an increase of
16.4% from 31 December 2024. This is mainly driven by an increase in loans and
advances to customers and an increase in investment securities.

Investment securities increased by 21.3% to reach QAR 40.3 billion, with the
Group investing in high-quality market securities.

Net Loans and advances to customers increased to QAR 104.5 billion, up 14.3%
due to higher corporate, government and public sector, retail lending and
acceptances. Excluding acceptances which are trade related items, the loan
growth is approx. 5.7%.

Debt securities and other borrowings in issue increased to QAR 13.3 billion
and QAR 27.4 billion respectively, as the Group diversified its funding
sources. Furthermore, customer deposits are at QAR 89.4 billion as we focus on
reducing high cost of funding, while growing low-cost deposits by 4.5%, which
represents 37.0% of the total customer deposits mix.

 

Income statement

CB Group reported a consolidated Net Profit after Tax of QAR 2,204.9 million
for the year ended 31 December 2025, which includes a BEPS Pillar Two Tax
charge of QAR 179.4 million and a reported loss of QAR 144.7 million from our
subsidiary in Turkey, Alternatif Bank.

Net interest income increased by 2.9% to QAR 3,413.9 million, and the Group
continued to grow core net fee and commission-based income, with fees and
other income increasing by 10.8% to QAR 1,372.2 million.

The Group's reported cost-to-income ratio increased to 29.5% due to increase
in staff costs.

Gross provisions increased by 78.2% to QAR 1,905.1 million as we continued to
build provisions for the remedial book. Net provisions were at QAR 1,193.3
million supported by strong recoveries which increased by 18.3% to QAR 711.8
million.

Our share of the results of associates continued to outperform by 23.2% to QAR
406.4 million.

 

 

Capital ratios

The Group's Common Equity Tier 1 (CET 1) Ratio as at 31 December 2025 is at
12.2%. The Capital Adequacy Ratio (CAR) as at 31 December 2025 increased to
17.6%. These ratios are higher than the regulatory minimum requirements of the
Qatar Central Bank and Basel III requirements.

 

BEPS Pillar Two Tax

 

The Group is subject to the global minimum top-up tax under Pillar Two tax
legislation. The top-up tax relates to the Group's operations in the State of
Qatar
('Qatar').

The Group has accrued for Base Erosion and Profit Shifting (BEPS) Pillar Two
Tax with effect from 1 January 2025 based on the applicable rules under BEPS
Pillar Two Anti Global Base Erosion ("GloBE") Rules. The Rules have multiple
mechanisms that aim to ensure that qualified multinational enterprises
maintain a minimum effective tax rate of 15% calculated based on the excess
taxable profits in every jurisdiction in which the Group operates. The
incremental impact of these new taxes amounted to QAR 179.4 million for the
year ended 31 December 2025 (year ended 31 December 2024: Nil). The Group may
benefit from certain available reliefs on the finalisation of the draft
executive regulations.

 

 

Credit ratings highlight the Group's robust resilience

 

On 22 October 2025, Standard & Poor's (S&P) Global Ratings affirmed
Commercial Bank's issuer credit ratings at 'A-' with a stable outlook. Earlier
in 2025, both Fitch and Moody's affirmed Commercial Bank's strong credit
ratings of 'A' and 'A2' respectively, also with a stable outlook.

These rating affirmations by S&P, Fitch, and Moody's reflect continued
confidence in the Group's financial strength, supported by solid capital
buffers, diversified funding sources, healthy liquidity, and profitability
supported by adequate earnings generation capacity. The ratings also
acknowledge the potential for sovereign support if ever required, given the
Commercial Bank's systemic importance to the local banking sector.

 

Diversified funding sources

 

In September, the Group issued a USD 600 million Senior-Unsecured Bond under
its EMTN programme with a 4.625% coupon and five-year tenor, listed on
Euronext Dublin. The transaction saw strong demand from investors, with
approximately USD 2.0 billion order book, allowing Commercial Bank to tighten
the final spread.

 

The Group continues to proactively diversify its funding base to maintain a
strong liquidity profile. It remains focused on accessing competitive and
sustainable funding solutions that are aligned with its long-term strategic
objectives.

 

 

Reinforcing our commitment to sustainability

 

The Group remains aligned with Qatar National Vision 2030 and Qatar's
environmental and climate priorities. In 2025, the Group continued to make
progress in relation to its sustainability initiatives to support its
operations and customers. The Group's progress was also recognised during the
year, including the Ministry of Environment and Climate Change's Leadership in
Sustainability recognition (October 2025).

 

About The Commercial Bank

The Commercial Bank was incorporated in 1974 as the first private bank in the
country. It stands as one of Qatar's leading financial institutions, with a
profitable track record since its inception, and is the second-largest
conventional bank in Qatar. Today, the Group continues to play a pivotal role
in driving innovation and raising banking service standards across the region
through investment in new technology, a strong customer focus, and prudent
management.

For further information, visit: Investor Relations | Commercial Bank of Qatar
(cbq.qa) (https://www.cbq.qa/EN/IR/Pages/default.aspx)

For investor-related queries, please contact CB Investor Relations team on
ir@cbq.qa (mailto:ir@cbq.qa)

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