The Commercial Bank Financial Results For The Nine Months Ended 30 September 2025
14 October 2025
The Commercial Bank (P.S.Q.C.) Reports Nine Months Ended
30 September 2025
Net Profit Before Pillar Two Tax of QAR 1,955.4 million
Key Highlights
- Net Profit before the impact of Pillar Two Tax of QAR 1,955.4 million, down by 16.5% as compared to nine months period ended 30 September 2024.
- Net Profit after Tax of QAR 1,785.5 million, down by 23.7% as compared to nine months period ended 30 September 2024.
- Total Assets of QAR 192.0 billion, up by 17.6% from 30 September 2024.
- Loans and Advances to Customers excluding Acceptances of QAR 94.8 billion, up by 8.2% from 30 September 2024.
- Customer Deposits of QAR 85.7 billion, up by 10.4% from 30 September 2024.
- Capital Adequacy Ratio at 17.9%, up from 17.8% on 30 September 2024.
- Total Equity of QAR 26.8 billion, up by 1.7% from 30 September 2024.
- Successful bond issuance of USD 600 million with a coupon rate of 4.625% and five-year tenor under the Bank’s EMTN Program.
Doha, Qatar, 14 October 2025:
The Commercial Bank (P.S.Q.C.) (the “Bank”) and its subsidiaries (the “Group”) announced today its financial results for the nine months ended 30 September 2025.
The Group reported a Net Profit before Pillar Two Tax of QAR 1,955.4 million for the nine months ended 30 September 2025 as compared to QAR 2,341.2 million for nine months ended 30 September 2024. Our results were impacted by a decrease in net interest income and an increase in loan impairment charges, offset by higher fee income. On a normalized basis excluding the LTIS related changes, the adjusted Net Profit before Pillar Two Tax for the nine months ended 30 September 2025 is QAR 2,000.0 million. In relation to our core businesses, our retail and wealth business continues to deliver good and consistent returns. On the wholesale banking side, our strong innovation and customer centric culture continues as well as our penetration in cash management. Our associates continued to perform well as we continue to work closely with them in the execution of their strategies.
Due to the potential implementation of the Global Minimum Top-up Tax of 15% (Base Erosion and Profit Shifting - BEPS Pillar Two Tax), a tax charge of QAR 169.9 million has been recorded. The Group may benefit from certain available reliefs on the finalisation of the draft executive regulations in the fourth quarter of 2025.
Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman, said,
“In the nine months of 2025, Commercial Bank advanced in digital innovation and enhancing client experience while ensuring alignment with Qatar National Vision 2030. Independent recognition, including Best Performing Bank in Qatar and awards for AI innovation, reflects the tangible impact of this work on customers and the wider economy. As we prepare to enter into the next phase of our strategy, with the recent appointment of our new Group CEO, Stephen Moss, we aim to position the bank for future profitable growth and continue to support the Qatar National Vision 2030.”
Mr. Omar Hussain Alfardan, Vice Chairman and Managing Director, said,
“We continued to advance our digital leadership with recognition in AI innovation and introduced new propositions for retail, corporates and SMEs including Visa Commercial Pay. We invested in people by adopting Career Day as an annual initiative to attract Qatari talent. We were recognized by the Ministry of Environment and Climate Change for Leadership in Sustainability. Together with ratings reaffirmations earlier this year, we believe we have strong foundations upon which to build as we prepare to enter the next phase of our strategy.”
Mr. Stephen Moss, Group Chief Executive Officer, commented,
“During my first two months as Group CEO, I have focused on listening carefully to key stakeholders namely our clients, our staff, our regulators and our shareholders. We are in the process of preparing for the next phase of our strategy and aim to update our stakeholders on our strategic priorities in the first quarter of 2026. We are in a country which is forecast by many to be the fastest growing GCC economy in each of 2026 and 2027. We are well positioned as a strong domestic bank to support the needs of our clients through our best-in-class banking products and services.”
Key indicators of the financial results for the nine months ended 30 September 2025 were as follows:
Financial Highlights
|
QAR million |
September 2025 |
September 2024 |
Change % |
|
|
|
|
|
|
Total Assets |
191,975.9 |
163,210.3 |
17.6% |
|
Loans and Advances to Customers |
104,034.9 |
90,738.8 |
14.7% |
|
Customer Deposits |
85,653.7 |
77,560.8 |
10.4% |
|
Total Equity |
26,833.1 |
26,372.3 |
1.7% |
|
|
|
|
|
|
Net Operating Income |
3,468.5 |
3,677.0 |
(5.7%) |
|
Operating Expenses |
(1,046.9) |
(927.3) |
(12.9%) |
|
Operating Profit |
2,421.6 |
2,749.7 |
(11.9%) |
|
Net Provisions |
(603.1) |
(534.9) |
(12.7%) |
|
Share of Results of Associates |
297.0 |
237.1 |
25.3% |
|
Net Monetary Losses Due to Hyperinflation |
(107.0) |
(123.4) |
13.3% |
|
Income Tax Expense |
(53.0) |
12.8 |
(514.6%) |
|
Net Profit Before BEPS Pillar Two Taxes |
1,955.4 |
2,341.2 |
(16.5%) |
|
BEPS Pillar Two Taxes |
(169.9) |
- |
(100.0%) |
|
Net Profit after Tax |
1,785.5 |
2,341.2 |
(23.7%) |
|
Key Performance Indicators |
September 2025 |
September 2024 |
|
|
|
|
|
Cost to Income Ratio |
30.2% |
25.2% |
|
Cost of Risk – COR (bps) – gross |
98 |
120 |
|
Cost of Risk – COR (bps) – net |
69 |
66 |
|
Non-Performing Loan (NPL) Ratio |
5.8% |
6.0% |
|
Loan Coverage Ratio* |
56.9% |
78.8% |
|
Common Equity Tier 1 (CET 1) Ratio |
13.0% |
13.0% |
|
Capital Adequacy Ratio (CAR) |
17.9% |
17.8% |
* Stage 3
Balance sheet: Total Assets as at 30 September 2025 reached QAR 192.0 billion, an increase of 17.6% from 30 September 2024. This is mainly driven by an increase in loans and advances to customers and an increase in investment securities. The investment securities increased by 27.9% to reach QAR 39.3 billion, with the Bank investing in high-quality market securities. The loans and advances to customers increased to QAR 104.0 billion, up by 14.7% due to higher corporate, government and public sector, retail lending and acceptances. Excluding acceptances which are trade related items, the loan growth is approx. 8.2%.
Debt securities in issue increased to QAR 13.7 billion as the Bank diversified its funding sources. Furthermore, customer deposits is at QAR 85.7 billion as we focus on reducing high cost of funding, while growing low-cost deposits by 6.5%, which represents 37.5% of the total customer deposits mix.
Income statement: Reported a consolidated Net Profit after Tax of QAR 1,785.5 million for the nine months ended 30 September 2025, which includes a BEPS Pillar Two Tax charge of QAR 169.9 million and a reported loss of QAR 132.7 million for the period from our subsidiary in Turkey, Alternatif Bank.
The net interest income was impacted by lower interest income and higher interest expense. To offset the pressure on the net interest income, the Group has been focusing on growing core net fee and commission-based income which included: 1) retail banking fees including wealth management and banking services and 2) wholesale banking fees, in particular payments.
The Group’s reported nine months period 30 September 2025 cost-to-income ratio increased to 30.2% due to lower operating income, and higher operating cost from domestic and Turkey. Further, the lower operating expenses in the nine months period ended 30 September 2024 were also attributed to decreased staff related LTIS costs, a consequence of IFRS 2 due to the decline in share price.
Net provisions increased by 12.7%, which included an increase in gross loan provisions as the Group continued to build loan provisions.
Our associates continued to perform strong as their contributions improved by 25.3%.
Credit quality: As of 30 September 2025, the ratio of non-performing loans to gross loans stood at 5.8%, compared to 6.0% as of 30 September 2024. During the nine months period 2025, the Group’s net provisions increased to QAR 603.1 million, up from QAR 534.9 million compared to the same period in 2024. As of 30 September 2025, Loan Coverage Ratio for stage 3 loans is 56.9%.
Capital ratios: The Group’s Common Equity Tier 1 (CET 1) Ratio as at 30 September 2025 reached 13.0%. The Capital Adequacy Ratio (CAR) as at 30 September 2025 stood at 17.9%. 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 BEPS Pillar Two Tax with effect from 1 January 2025 based on the applicable rules under Base Erosion and Profit Shifting (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 Commercial Bank operates. The incremental impact of these new taxes amounted to QAR 169.9 million for the nine months ended 30 September 2025 (nine-month period ended 30 September 2024: Nil). The Group may benefit from certain reliefs on the finalisation of the draft executive regulations in the fourth quarter of 2025.
Commercial Bank Share Buyback
The Board of Directors approved at its meeting held on 22 May 2025 a Share Buyback plan to purchase up to 10% of the Bank’s fully paid-up issued shares. The program is pending regulatory approvals from the Qatar Central Bank (QCB) and Qatar Financial Markets Authority (QFMA).
Credit ratings highlight the Bank’s robust resilience
Commercial Bank’s credit ratings remain strong, with Moody’s and Fitch affirming the credit ratings at A2 and A respectively. The summary of ratings are as follows:
- Moody’s:A2 / Stable / P-1
- Fitch: A / Stable / F1
- S&P: A- / Stable / A-2
These ratings reflect continued confidence in the Bank’s financial strength, underpinned by solid capitalization, liquidity, and profitability, as well as the stable operating environment in Qatar. They also acknowledge the potential for sovereign support if ever required.
The consistency across agencies reinforces Commercial Bank’s credibility and strategic position, providing a strong platform for long-term value creation.
Diversified funding sources
In September, Commercial Bank issued a USD 600 million Senior-Unsecured Bond under its EMTN programme. The Bonds, with a 4.625% coupon and five-year tenor, are listed on Euronext Dublin. The transaction saw strong demand from investors, with approximately USD 2.0 billion order book, an oversubscription by approximately 4 times, allowing Commercial Bank to tighten the final spread.
The Bank continues to proactively diversify its funding sources to support its growth initiatives and enhance liquidity. It remains focused on securing competitive, sustainable financing options that align with its long-term strategy, further strengthening its financial position and capacity to meet the evolving needs of its customers and stakeholders.
Reinforcing our commitment to sustainability
Commercial Bank remains aligned with Qatar National Vision 2030 and the country’s environmental and climate strategy. Building on recent milestones in green financing and ESG performance, the Bank continues to embed sustainability into its processes. As part of its long-term vision, Commercial Bank is committed to driving sustainable growth while creating lasting value for clients, communities, and shareholders.
Commercial Bank in early October 2025 was recognised by Ministry of Environment and Climate Change for Leadership in Sustainability.
Empowering innovation, talent, and community impact
Commercial Bank continues to advance its position as a leading innovator and purpose-driven organization in Qatar through a range of strategic initiatives launched in early 2025:
- Recognition of Consumer and Digital Excellence:
Commercial Bank has been recognized with nine prestigious awards from Global Finance magazine, affirming its position as a leader in innovation and customer-focused banking. Among these accolades, the Bank was named “Best Consumer Digital Bank in the Middle East” and recognized for “Best Online Payment Solution Consumer Global”, reflecting its continued commitment to delivering seamless and secure digital experiences that empower customers through innovation, convenience, and confidence.
- All-new Corporate Mobile Banking App:
The Bank unveiled its all-new Corporate Mobile Banking App, setting a new standard for business banking in the region. This state-of-the-art mobile app has been redesigned to transform how corporate clients manage their financial operations by delivering unprecedented speed, security, and convenience through their smartphones.
- Best in-class Straight Through Processing:
Commercial Bank was recognized by J.P. Morgan for “Best-in-Class Straight Through Processing (STP) Rates” in Payments and Commercial & Treasury Messages - reaffirming its commitment to customer-centric financial solutions. The Bank continues to play a key role in advancing Qatar’s financial landscape and enhancing the client experience.
About Commercial Bank
Commercial Bank, incorporated in 1974 as the first private bank in the country, celebrates its 50th anniversary this year. 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 Bank 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)
For investor-related queries, please contact CB Investor Relations team on ir@cbq.qa