The Board of Directors proposed a cash dividend of 16% of nominal share value, equivalent to QAR 0.16 per share, subject to QCB approval and shareholders’ approval at the AGM

 

Doha, Qatar – 4 February 2024: Dukhan Bank (“the Bank” or “the Group” when referred along with its subsidiaries; QSE Ticker: DUBK), announced its financial results for the year ended 31 December 2023 with a highest net profit amounting to QAR 1.3 billion, representing a 4% growth compared to the last year.

 

Key Performance Highlights

Return on tangible equity (RoTE) 11.0%		Return on tangible assets (RoTA) 1.2%		Capital adequacy ratio (CAR) 17.2%
Total assets QAR 114.4 billion +8% yoy		Financing assets QAR 77.6 billion +3% yoy		Customer deposits QAR 78.0 billion +5% yoy
Net profit QAR 1.3 billion +4% yoy		EPS QAR 0.237 per share		Dividend per share (DPS) QAR 0.16 per share

 

Message from Chairman of Dukhan Bank
Commenting on the achievements, H.E. Sheikh Mohammed Bin Hamad Bin Jassim Al-Thani, Chairman of Dukhan Bank, said:
“At Dukhan Bank, we are excited about the continual attainment of exceptional results throughout 2023, contributing significant value to our customers, stakeholders, and the nation at large. Over the past year, we have reached noteworthy milestones, with our successful listing on the Qatar Stock Exchange (QSE) standing as a strong testament to the trust and confidence bestowed upon our institution by our shareholders. Additionally, our robust business models have showcased resilience in navigating many challenges, fortifying the overall stability of our institution.

At Dukhan Bank, our commitment to the future remains steadfast as we persist in investing in advanced digital capabilities to elevate our customer service and facilitate their banking requirements with greater ease. We take pride in our significant social contributions and the strides made in our sustainability journey, evident in various initiatives undertaken in both operations and corporate culture. These milestones position us to advance and emerge as leaders in the banking sector in Qatar. 
Moving forward, we are committed to leveraging our core strengths to seek out new opportunities, cultivate innovation, and provide exceptional value to our shareholders. Simultaneously, we aim to expand our existing market share with a focus on sustainable growth.”

Analysis of Group’s financial performance 

Key financial performance indicators Amounts in QAR’ millions	YE 2023	YE 2022	Growth (%)
Net income from financing activities	4,666	3,216	+45%
Total income	6,095	4,452	+37%
Net profit	1,302	1,253	+4%
Earnings per share (QAR)	0.237	0.227	+4%

 

The Group reported a highest ever net profit of QAR 1.3 billion with a year-on-year of growth 4%. This was mainly attributed to a rise in net income from financing activities, which led to an overall increase in total income for the Group which grew by 37%. 
Further, improvement in net impairment charge owing to better recoveries, also supported the bottom-line profitability on an overall basis. Net profit margins for the Group remained resilient, despite persistently higher policy rates prevailed throughout the year.

Analysis of Group’s financial position  

Key financial position indicators Amounts in QAR’ millions	31 Dec 2023	31 Dec 2022	Growth (%)
Financing assets	77,585	75,677	+3%
Total assets	114,417	106,276	+8%
Total deposits	78,002	74,545	+5%

 

The Group’s total assets stood at QAR 114.4 billion, which mainly comprise of financing assets of QAR 77.6 billion (68% of total assets), followed by investment securities of QAR 20.0 billion (17% of total assets).

The balance sheet is mainly funded by customer deposits, which were QAR 78.0 billion as at end of the financial year. Group's liquidity position remained robust with regulatory loans to deposit ratio of 98.1%. Total shareholders’ equity remained above QAR 12.9 billion. The capital adequacy ratio (CAR) maintained at 17.2% in accordance with Basel III requirements, being adequately higher than the minimum supervisory ratio, as specified by the Qatar Central Bank.

Shareholder value creation

After reviewing current year’s financial performance, with an assessment of the present and anticipated liquidity position, and taking into account the prevailing and future macroeconomic conditions along with the business outlook, the Board of Directors has recommended a 16% annual cash dividend distribution equivalent to QAR 0.16 per share.

Enhanced digital services

Dukhan Bank boasts strategically positioned branches across the country, providing a comprehensive array of cutting-edge banking services and products. This endeavor aims to enhance accessibility, streamline processes, and offer convenience to our expanding customer base. As part of our commitment to innovation, Dukhan Bank consistently introduces contemporary digital services and products, facilitating seamless banking transactions. A notable addition to our offerings is the recent launch of eco-friendly vehicle finance, incentivizing customers to invest in electric or hybrid vehicles with an attractive and competitive profit rate.

Furthermore, Dukhan Bank has introduced the Smart Kiosk, a self-service machine that simplifies and expedites the card printing process for clients in a secure manner. Additionally, we launched 'Himyan' prepaid card, the first Qatari national prepaid card, enabling both customers and visitors to make secure payments. Our commitment to technological advancements is further showcased through the unveiling of Apple Pay, Samsung Wallet, and Google Pay services, seamlessly operating via our contactless payment platform (D-Pay). Dukhan Bank takes pride in introducing the first prepaid digital card in Qatar on its mobile app, following our distinction as the initial partner in Qatar to join Mastercard's global Digital First Card program. In line with our dedication to customer support, we have introduced 'Rashid,' an AI-powered virtual assistant, available to assist customers across our digital platforms, mobile app, website, and WhatsApp.

Dukhan Bank has also undertaken the listing of its shares for trading on the Qatar Stock Exchange through a direct listing. This strategic move is in harmony with the bank's long-term vision, aimed at inviting customers, shareholders, and eligible investors to be part of its pioneering journey. Dukhan Bank takes pride in offering an award-winning and comprehensive spectrum of banking services, spanning retail, corporate and commercial banking, private banking, real estate finance, structured finance, investments, as well as wealth and asset management.

Unwavering excellent performance and prestigious awards

In recognition of its steadfast commitment to customer-centric services and outstanding performance, Dukhan Bank continues to garner international acclaim and prestigious awards. In 2023, the bank has received several notable accolades, including four Global Finance Awards: World’s Best Islamic Private Bank, Best Integrated Consumer Banking Site – Qatar, Best Mobile Banking Adaptive Site – Qatar, and Best Mobile Banking Adaptive Site – Middle East. Additionally, Dukhan Bank secured four distinctions at the MENA Banking Excellence Award 2023, winning Best Private Bank – Qatar, Best Multi-Channel Offering, Excellence in Omni-Channel Integration, and MENA Private Banker of the Year – Chaouki Daher. The Bank also earned the esteemed 'Most Innovative Islamic Card Product of 2023' award for its cutting-edge digital prepaid card at The Banker magazine's awards ceremony. Furthermore, Euromoney's Islamic Finance Awards 2023 recognized Dukhan Bank as the 'Most Transformed Islamic Bank in Qatar 2023.' The Bank achieved three prestigious global rankings by Euromoney magazine, showcasing excellence in digital transformation, social responsibility, and corporate banking.