The Commercial Bank (CBQK) investor relations material

Executive summary

• Strategy for 2026–2030 centers on building a balanced, sustainably profitable bank, leveraging strong retail and wealth franchises, scaling fee-based income, and improving capital efficiency and risk profile.

• Net profit after Pillar Two Tax was QAR 2,204.9 million, down 27% year-over-year; net profit before Pillar Two Tax was QAR 2,384.4 million, down 21%.

• Operating income grew 5% to QAR 4,786 million; operating expenses rose 11% to QAR 1,411 million.

• The Group operates through four main business segments: Wholesale Banking, Retail Banking, International (including Alternatif Bank in Turkey), and Unallocated/Other.

• Technology, digital delivery, and AI are key enablers, with live AI use cases in document processing and customer service, and further initiatives planned to drive income, efficiency, and risk management.

Financial highlights

• Net profit for 2025 was QAR 2.2 billion, down from QAR 3.0 billion in 2024, mainly due to higher provisions, increased expenses, and Turkish subsidiary losses.

• Net interest income rose 3% year-over-year to QAR 3.41 billion; fees and other income up 10.8%; operating income up 5.1%.

• Customer deposits rose 16.2% to QAR 89.4 billion; total assets up 16.4% to QAR 192.9 billion.

• Loans and advances to customers increased 14.3% to QAR 104.5 billion.

• Earnings per share were QAR 0.50, down from QAR 0.71.

Outlook and guidance

• Net interest margin (NIM) guidance for 2026 is around 2.2%, with 10 bps downward pressure; focus on optimizing funding mix and increasing CASA deposits.

• Loan growth expected at roughly 3% per annum in the medium term, with retail book targeted to increase 50% by 2030.

• 2026 ROE target is above 9.2%, with a 2030 target above 12%.

• Committed to sustainable dividend of QAR 0.3 per share, subject to regulatory approval.

• Positive jaws expected from 2027 onwards, with revenue growth outpacing costs.