Doha (The Palestine Telegraph Newspaper) - 22 January
2026 – Commercial Bank of Qatar announced a 27.3% decline in net profit for the
full year 2025. Net profit attributable to shareholders reached QAR 5.42
billion from QAR 7.45 billion in 2024. The bank cited lower interest margins
and higher impairment provisions as primary factors.
One of the country's largest lenders, reported a 27.3%
year-on-year decrease in net profit for 2025. The institution disclosed its
annual financial results on 21 January 2026, showing net profit attributable to
the bank's shareholders at QAR 5.42 billion compared to QAR 7.45 billion
recorded in 2024. Group CEO Abdulla Mubarak Al-Khalifa presented the figures
during a press conference at the bank's headquarters.
The decline stemmed from compressed net interest income and
elevated credit loss provisions amid regional economic pressures. Total assets
grew modestly to QAR 208.6 billion, reflecting 2.8% expansion. The bank's board
recommended a dividend payout of QAR 1.80 per share, maintaining capital
distribution continuity.
Financial Performance Breakdown for 2025
Net interest income fell 14.2% to QAR 11.8 billion from QAR
13.7 billion in the prior year, driven by a 320 basis points decline in net
interest margin to 2.9%. Non-interest income increased 8% to QAR 4.2 billion,
supported by trading gains and fee income growth. Operating income totalled QAR
16.0 billion, down 7.5% year-on-year.
Operating expenses rose 5.1% to QAR 4.8 billion, primarily
from staff costs and technology investments. Cost-to-income ratio improved
slightly to 30.1% from 28.4%. Impairment charges on loans and advances surged
85% to QAR 2.9 billion, reflecting conservative provisioning across corporate
and retail portfolios.
Fourth quarter 2025 net profit declined 32%
quarter-on-quarter to QAR 1.2 billion. Earnings per share dropped to QAR 1.42
from QAR 1.95. Return on average equity contracted to 11.8% from 17.2% in 2024.
Balance Sheet and Capital Position
Credit: thepeninsulaqatar.com
Total loans and advances reached QAR 138.4 billion, up 3.2%
from year-end 2024, with corporate lending comprising 62% of portfolio.
Customer deposits grew 4.1% to QAR 152.7 billion, maintaining robust liquidity
coverage ratio at 185%. Loan-to-deposit ratio stood at 90.6%.
Tier 1 capital ratio strengthened to 19.2%, exceeding Qatar
Central Bank minimums by 920 basis points. Total capital adequacy ratio
measured 21.4%. Non-performing loans ratio increased to 1.8% from 1.2%, with
coverage ratio at 142%.
Investment securities portfolio totalled QAR 48.2 billion,
diversified across sovereign bonds and equities. Cash and equivalents position
maintained at QAR 28.5 billion.
Segment Performance Details
Corporate banking generated QAR 3.8 billion net profit, down
22% from 2024 levels due to margin compression in energy sector exposures.
Consumer banking reported QAR 1.7 billion profit, 18% decline reflecting
mortgage competition pressures. Wealth management delivered QAR 0.45 billion,
up 12% on higher asset under management fees.
Treasury operations contributed QAR 1.2 billion, benefiting
from fixed income trading amid volatility. International segment profit fell
35% to QAR 0.25 billion, impacted by Lebanon operations slowdown.
Regional and Domestic Market Context
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Qatar's banking sector recorded aggregate 2025 net profits
of QAR 42.3 billion, down 11% from 2024 peak. CBQ market share in total assets
remained stable at 15.2%. Qatar National Bank reported 8% profit growth
contrasting CBQ decline.
Central Bank deposit rate maintained at 5.5% through
December 2025. Real estate sector constituted 28% of loan book, with 95%
performing assets. Energy financing represented 35%, fully compliant with
sustainability frameworks.
Non-oil GDP growth achieved 4.2%, supporting credit demand.
Inflation stabilised at 2.1%, within monetary policy targets.
Strategic Initiatives and Outlook Statements
CEO Al-Khalifa highlighted digital transformation
investments exceeding QAR 800 million, launching AI-powered customer platform
serving 450,000 users. Branch network rationalised to 28 locations, with 85%
transactions digital.
Sustainability-linked lending portfolio expanded to QAR 18
billion, targeting net zero alignment by 2050. Partnerships announced with HSBC
for trade finance corridors to Southeast Asia.
2026 guidance projected 8-10% loan growth, with net interest
margin stabilisation above 3%. Dividend policy reaffirmed at 40% payout ratio.
Capital expenditure budgeted at QAR 1.2 billion for fintech expansion.
Regulatory Compliance and Governance Updates
Credit: kyc-chain.com
CBQ maintained full compliance with Basel III requirements
ahead of 2026 implementation. Anti-money laundering programme enhanced with
blockchain transaction monitoring. Board diversity reached 33% female
representation.
Annual general meeting scheduled for 15 March 2026, subject
to Qatar Financial Markets Authority approval. Auditor PwC reappointed for
three-year term. Related party transactions disclosed at QAR 2.1 billion, 1.6%
of total assets.
Comparative Performance Against Peers
QNB net profit grew 8.2% to QAR 17.9 billion, benefiting
from treasury gains. Doha Bank reported 5% decline to QAR 2.8 billion. Masraf
Al Rayan posted 12% Islamic banking profit growth at QAR 3.1 billion.
Sector return on equity averaged 14.2% versus CBQ's 11.8%.
Aggregate CAR stood at 19.8%, with liquidity coverage averaging 162%.
Dividend Policy and Shareholder Returns
Proposed 2025 dividend of QAR 1.80 per share yields 9.2%
based on closing price of QAR 19.55. Total payout amounts to QAR 6.9 billion,
52% of after-tax earnings. Scrip dividend option available at 95% discount to
market.
Shareholder distribution history averaged 38% payout ratio
since 2020 IPO. Qatar Investment Authority maintained 23.1% stake unchanged.
Free float constituted 52% with institutional ownership at 68%.
Digital Banking and Customer Metrics
Mobile app registrations surpassed 1.2 million, 85% of
retail customers. Digital mortgage approvals processed 4,200 applications, 92%
approval rate. Contactless payments volume reached QAR 28 billion monthly.
Customer deposits digital acquisition grew 22% year-on-year.
Net promoter score improved to 68 from 59. Cybersecurity incidents reported
zero material breaches.
Risk Management Framework Enhancements
Enterprise risk management framework stress-tested against
15% oil price collapse scenario. Climate risk disclosures aligned with TCFD
recommendations. Operational resilience programme conducted 42 simulations.
Provisioning methodology adopted IFRS 9 expected credit loss
model fully. Stage 3 loans monitored daily by 25-member recovery unit.
Market Reaction and Analyst Coverage
CBQ shares declined 3.2% to QAR 19.55 on announcement day,
underperforming QE Index 0.8% drop. Trading volume tripled average at 8.2
million shares. 12-month target consensus averaged QAR 23.10.
Analyst recommendations maintained
overweight rating with 9.2% upside potential. Dividend yield ranked third among
GCC banks at 9.2%.
Board and Management Statements
Chairman Sheikh Abdullah bin Thani Al-Thani affirmed capital
strength supports growth ambitions. CEO Al-Khalifa projected ROE recovery to
15% by 2027. CFO Ali Ahmed Al-Kuwari detailed Q1 2026 pre-provision profit
trajectory.
Investor relations team hosted 45 roadshows across GCC and
London. Earnings call scheduled 23 January featuring segment deep dives.
Economic Backdrop Influencing Results
Credit: Christopher Pike/Bloomberg
Qatar energy exports averaged $85 per barrel Brent
equivalent. LNG cargoes reached 82 million tonnes, up 4%. Visitor arrivals hit
4.2 million, 95% hotel occupancy.
FDI inflows totalled $3.1 billion across logistics and fintech. Corporate tax regime 10% rate applied first full year.