Profit ratio

Dukhan Bank H1 net profit jumps 27% to QR 745 million

Dukhan Bank recorded a net profit of QR 745 million in the first half of 2022, which is an increase of 27% from the QR 586 million recorded in the same period last year.

Total revenue for the first six months of 2022 increased to QR 2.1 billion, a growth rate of 8% from QR 1.9 billion in the same period of 2021. Considering the strong revenue growth combined with effective cost management, greater operational efficiency was achieved thanks to the reduction in the cost/income ratio, which fell to 25.1% in the first half of 2022, compared to 26.3% recorded in the same period last year.
Dukhan Bank’s total assets reached QR 104 billion in the first half of 2022 and customer funding assets stood at QR 74 billion in the first half of 2022, while customer deposits stood at QR 73 billion. QR at the end of June 30, 2022, guaranteeing a funding-to-deposit ratio of around 100% reflecting efficient and prudent liquidity management.
Total equity reached QR 14 billion and the total capital adequacy ratio remained stable at 18.3% as of June 30, 2022, in line with Basel III requirements, while maintaining a sufficient cushion above the Minimum Oversight Ratio as specified by Qatar Central Bank and Basel Standards.
Earnings per share increased by 21% to QR 1.37 per share in 2022 from QR 1.13 per share in 2021. The bank’s return on tangible equity (RoTE) increased to 12.7% in the first half of 2022 compared to 11.2% recorded in the same period of 2021, showing an increase of 14% while the return on tangible assets (RoTA) increased from 12% to 1.4% during the first half of 2022 compared to compared to the same period last year.
It should be noted that international rating agencies Fitch affirmed the bank’s rating at A- with a stable outlook and Moody’s affirmed the bank’s rating at A2/Prime-1 also with a stable outlook.
During the second quarter of 2022, Dukhan Bank went the extra mile to ensure more convenient and seamless banking transactions for its customers with the introduction of numerous digital solutions. The bank has become the first partner in Qatar to join Mastercard’s global Digital First Card program. Through this program, Dukhan Bank is now issuing digital prepaid cards as part of the bank’s efforts to improve the customer experience.
Dukhan Bank has also launched its direct funds transfer service to India as part of its new digital service package. With this service, bank customers can now send funds directly to India from Dukhan Bank’s app safely and securely within 60 seconds. This direct remittance service to India is launched within Dukhan Bank’s D-remit platform and will be expanded to other countries with a host of remittance options for customers.
Additionally, in the first of its kind among Qatari banks, Dukhan Bank has unveiled “Investment Tracking”, an outstanding self-service feature to help customers view their investment portfolios with ease and comfort, while providing real-time reporting and analysis of portfolio performance.
The first half of 2022 also saw the launch of D-Tap (SoftPOS with PIN code acceptance), the new smart payment solution for merchants. This low-cost, maintenance-free solution allows merchants to accept payments through a variety of contactless cards and devices.
Dukhan Bank also unveiled direct-to-account money transfer service with Western Union money transfer services through its online web and app banking offering and its ATMs across the country. The service comes as an extension of Dukhan Bank’s existing ‘account-to-cash’ international funds transfer solution with Western Union to now include direct ‘account-to-account’ funds transfers.
In recognition of its excellent services and innovative idea in the banking industry, Dukhan Bank won several regional and international awards in the first half of 2022. Dukhan Bank received nine accolades at the 2022 MEED Excellence Banking Awards, which crowned the efforts of Dukhan Bank in the provision of banking services and its leadership in enriching the digital banking experience of its customers with innovative solutions by awarding it nine distinctions.
Dukhan Bank also won the Outstanding Innovation in Mobile Banking Award from Global Finance in the Innovators 2022 Awards for its mobile banking application “Dukhan Mobile”, which provides a simple and convenient banking experience for customers. In addition, the bank was awarded the Best Islamic Private Bank in the World at Global Finance’s World’s Best Islamic Financial Institutions Awards 2022.