Doha Bank Q.P.S.C.
CONSOLIDATED FINANCIAL STATEMENTS
31 DECEMBER 2024
Doha Bank Q.P.S.C.
Consolidated financial statements
For the year ended 31 December 2024
CONTENTS | PAGE(S) |
Independent auditor's report | 1 - 5 |
Consolidated statement of financial position | 6 |
Consolidated statement of income | 7 |
Consolidated statement of comprehensive income | 8 |
Consolidated statement of changes in equity | 9 |
Consolidated statement of cash flows | 10 |
Notes to the consolidated financial statements | 11 - 86 |
Supplementary information | 87 -88 |
Independent auditor's report
to the shareholders of Doha Bank Q.P.S.C.
REPORT ON THE AUDIT OF THE CONSOLIDATED FINANCIAL STATEMENTS
Our opinion
In our opinion, the consolidated financial statements presents fairly, in all material respects, the consolidated financial position of Doha Bank Q.P.S.C. ("the Parent" or "the Bank") and its subsidiaries (together the "Group") as at 31 December 2024 and its consolidated financial performance and its consolidated cash flows for the year then ended in accordance with the IFRS Accounting Standards.
What we have audited
The Group's consolidated financial statements comprise:
- The consolidated statement of financial position as at 31 December 2024;
- The consolidated statement of income for the year then ended;
- The consolidated statement of comprehensive income for the year then ended;
- The consolidated statement of changes in equity for the year then ended;
- The consolidated statement of cash flows for the year then ended; and
- The notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the consolidated financial statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We are independent of the Group in accordance with the International Code of Ethics for Professional Accountants (including International Independence Standards) issued by the International Ethics Standards Board for Accountants (IES A Code) and the ethical requirements that are relevant to our audit of the consolidated financial statements in the State of Qatar. We have fulfilled our other ethical responsibilities in accordance with the IESBA Code and the ethical requirements in the state of Qatar.
Our audit approach
Overview
Key audit matter | Impairment on loans and advances and off balance sheet facilities to customers
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the consolidated financial statements. In particular, we considered where Directors made subjective judgements; for example, in respect of significant accounting estimates that involved making assumptions and considering future events that are inherently uncertain. As in all of our audits, we also addressed the risk of management override of internal controls, including among other matters consideration of whether there was evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an opinion on the consolidated financial statements as a whole, taking into account the structure of the Group, the accounting processes and controls, and the industry in which the Group operates.
PricewaterhouseCoopers - Qatar Branch, P.O.Box: 6689, Doha, Qatar.
Ministry of Commerce and Industry License number 6 / Qatar Financial Markets Authority License number 120155 T: +974 4419 2777, F:+974 4467 7528, www.pwc.com/me
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Key audit matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the consolidated financial statements of the current year. These matters were addressed in the context of our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
Key audit matter | How our audit addressed the key audit matter |
Impairment on loans and advances and off balance sheet facilities to customers
Impairment allowances represent the Directors' best estimate of the losses arising from credit risk and particularly from loans and advances and off balance sheet facilities to customers. As described in the material accounting policies to the consolidated financial statements, impairment losses have been determined in accordance with IFRS 9.
We focused on this area because the Directors make complex and subjective judgements over both amount and timing of recognition of impairment, such as:
- Determining criteria for significant increase in credit risk.
- Choosing appropriate models and assumptions for the measurement of Expected Credit Losses (ECL) including Probability of Default (PD), Loss Given Default (LGD), and Exposure at Default (EAD).
- Establishing the relative weighting of forward- looking scenarios for each type of product/
market and the associated CL.
- Establishing groups of similar assets for the purpose of measuring the ECL.
- Determining disclosure requirements in accordance with the IFRS 9.
Further, loans and advances and off balance sheet facilities to customers are material within the overall context of the consolidated financial statements.
The Group's gross loans and advances to customers that are subject to credit risk, include loans and advances to customers amounting to QR 66,245 million, and off-balance sheet facilities amounting to QR 14,234 million as at 31 December 2024, as disclosed in note 10 and note 33 to the consolidated financial statements.
Information on the credit risk and the Group's credit risk management is provided in note 4 to the consolidated financial statements.
Our audit procedures in relation to this key audit matter included the following:
- Assessed and tested on a sample basis the design and operating effectiveness of the relevant key controls around origination and approval of loans and advances and off balance sheet facilities, monitoring of credit exposures, and impairment calculation.
- Evaluated the appropriateness of the Group's impairment provisioning policy in accordance with the requirements of IFRS 9.
-
Used our own internal experts to independently assess the reasonableness of the ECL methodology developed and applied by Directors including model risk parameters (PD, LGD, and EAD),
forward-looking information, associated weighting, and staging analysis. - Obtained an understanding of and tested the completeness and accuracy of the historical and current datasets used for the ECL calculation.
- Tested a sample of loans and advances and off balance sheet facilities to customers to determine the appropriateness and application of staging criteria.
- Obtained an understanding of the methodology adopted to identify and calculate individual impairment allowance for stage 3 exposures, and tested a sample of such exposures against the methodology.
- Obtained samples of the latest available credit reviews and checked that they include appropriate assessment and documentation of borrowers' ability to meet repayment obligations (principal, interest, and commission).
- Evaluated the adequacy of the consolidated financial statements disclosures to determine if they were in accordance with IFRS 9 and QCB regulations.
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Other information
The Directors are responsible for the other information. The other information comprises the Board of Directors' report (but does not include the consolidated financial statements and our auditor's report thereon), which we obtained prior to the date of this auditor's report, and the complete annual report, which is expected to be made available to us after that date.
Our opinion on the consolidated financial statements does not cover the other information and we do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the consolidated financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed, on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
When we read the complete annual report, if we conclude that there is a material misstatement therein, we are required to communicate the matter to those charged with governance.
Responsibilities of the Directors and those charged with governance for the consolidated financial statements
The Directors are responsible for the preparation and fair presentation of the consolidated financial statements in accordance with IFRS Accounting Standards and with the requirements of the Qatar Commercial Companies Law number 11 of 2015, as amended by law number 8 of 2021 and QCB regulations, and for such internal control as the Directors determine is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, the Directors are responsible for assessing the Group's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group's financial reporting process.
Auditor's responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these consolidated financial statements.
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Auditor's responsibilities for the audit of the consolidated financial statements (continued)
As part of an audit in accordance with ISAs, we exercise professional judgment and maintain professional scepticism throughout the audit. We also:
- Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Group's internal control.
- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors.
-
Conclude on the appropriateness of the Directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report.
However, future events or conditions may cause the Group to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
- Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the Group as a basis for forming an opinion on the consolidated financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the consolidated financial statements of the current year and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
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REPORT ON OTHER LEGAL AND REGULATORY REQUIREMENTS
Further, as required by the Qatar Commercial Companies Law number 11 of 2015, as amended by law number
8 of 2021, we report that:
- We have obtained all the information we considered necessary for the purpose of our audit;
- The Group has maintained proper books of account and the financial statements are in agreement therewith;
- The financial information included in the Board of Directors' report is in agreement with the books and records of the Group; and
- Nothing has come to our attention, which causes us to believe that the Bank has breached any of the applicable provisions of the Qatar Commercial Companies Law number 11 of 2015, as amended by law number 8 of 2021, or of its Articles of Association, which would materially affect the reported results of its operations or its financial position as at 31 December 2024.
For and on behalf of PricewaterhouseCoopers - Qatar Branch
Qatar Financial Market Authority registration number 120155
Waleed Tahtamouni
Auditor's registration number 370
Doha, State of Qatar
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Doha Bank Q.P.S.C.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 31 December 2024
2024 | 2023 | |||
Notes | QR'000 | QR'000 | ||
Assets | ||||
Cash and balances with central banks | 8 | 5,887,697 | 4,842,101 | |
Due from banks | 9 | 6,842,893 | 5,496,929 | |
Loans and advances to customers | 10 | 60,983,523 | 58,009,676 | |
Investment securities | 11 | 34,204,591 | 30,386,048 | |
Insurance contract assets* | 19,052 | 14,932 | ||
Other assets* | 12 | 1,768,912 | 1,818,678 | |
Investment in an associate | 13 | 10,440 | 10,224 | |
Property, furniture and equipment | 14 | 529,935 | 619,229 | |
Total assets | 110,247,043 | 101,197,817 | ||
Liabilities and equity | ||||
Liabilities | ||||
Due to banks | 15 | 30,650,927 | 23,908,269 | |
Customers deposits | 16 | 50,851,776 | 51,572,773 | |
Debt securities | 17 | 3,832,221 | 2,588,373 | |
Other borrowings | 18 | 7,396,660 | 5,928,455 | |
Insurance contract liabilities* | 54,723 | 42,384 | ||
Other liabilities* | 19 | 2,642,522 | 2,713,542 | |
Total liabilities | 95,428,829 | 86,753,796 | ||
Equity | ||||
Share capital | 20 (a) | 3,100,467 | 3,100,467 | |
Legal reserve | 20 (b) | 5,110,152 | 5,110,152 | |
Risk reserve | 20 (c) | 1,451,600 | 1,416,600 | |
Fair value reserve | 20 (d) | (115,847) | (86,452) | |
Foreign currency translation reserve | 20 (e) | (86,296) | (82,249) | |
Retained earnings | 1,358,138 | 985,503 | ||
Net equity attributable to shareholders of the Bank | 10,818,214 | 10,444,021 | ||
Instruments eligible as additional Tier 1 capital | 20 (g) | 4,000,000 | 4,000,000 | |
Total equity | 14,818,214 | 14,444,021 | ||
Total liabilities and equity | 110,247,043 | 101,197,817 |
*Refer to Note 38 for change in comparatives
The consolidated financial statements were approved by the Board of Directors on 19 January 2025 and were signed on its behalf by:
Abdulrahman Bin Fahad Bin Faisal Al Thani
Group Chief Executive Officer
Fahad Bin Mohammad Bin Jabor Al Thani | Abdul Rahman Bin Mohammad Bin Jabor Al Thani |
Chairman | Managing Director |
The attached notes 1 to 38 form integral part of these consolidated financial statements.
Independent auditors' report is set out on pages 1-5.
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Doha Bank Q.P.S.C.
CONSOLIDATED STATEMENT OF INCOME
For the year ended 31 December 2024
2024 | 2023 | |||
Notes | QR'000 | QR'000 | ||
Interest income* | 21 | 6,357,391 | 5,601,738 | |
Interest expense* | 22 | (4,365,627) | (3,485,737) | |
Net interest income | 1,991,764 | 2,116,001 | ||
Fee and commission income | 23 | 674,287 | 601,864 | |
Fee and commission expense | 24 | (272,352) | (225,416) | |
Net fee and commission income | 401,935 | 376,448 | ||
Insurance revenue | 76,550 | 67,508 | ||
Insurance service expense | (36,290) | (31,067) | ||
Net expense from reinsurance contracts held | (37,051) | (31,642) | ||
Recovery from reinsurers from legal case | 25 | - | 64,320 | |
Insurance service results | 3,209 | 69,119 | ||
Net foreign exchange gain | 26 | 139,727 | 104,640 | |
Net income from investment securities* | 27 | 94,801 | 127,305 | |
Other operating income | 28 | 22,842 | 19,544 | |
257,370 | 251,489 | |||
Net operating income | 2,654,278 | 2,813,057 | ||
Staff costs | 29 | (560,617) | (521,145) | |
Depreciation | 14 | (80,296) | (89,375) | |
Net impairment (loss) / reversal on investment securities | (17,004) | 4,222 | ||
Net impairment loss on loans and advances to customers | 10 | (702,028) | (892,360) | |
Net impairment (loss) / reversal on other financial facilities | (67,521) | 31,017 | ||
Other expenses* | 30 | (369,221) | (319,662) | |
Loss on litigation | 30.1 | - | (161,646) | |
Total expenses and impairment | (1,796,687) | (1,948,949) | ||
Profit before share of results of an associate and tax | 857,591 | 864,108 | ||
Share of results of an associate | 679 | 555 | ||
Profit before tax | 858,270 | 864,663 | ||
Income tax expense | 31 | (6,814) | (95,185) | |
Profit for the year | 851,456 | 769,478 | ||
Earnings per share: | ||||
Basic and diluted earnings per share (QR per share) | 32 | 0.27 | 0.25 |
*Refer to Note 38 for change in comparatives
The attached notes 1 to 38 form integral part of these consolidated financial statements.
Independent auditors' report is set out on pages 1-5.
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Doha Bank Q.P.S.C.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the year ended 31 December 2024
2024 | 2023 | |||
Notes | QR'000 | QR'000 | ||
Profit for the year | 851,456 | 769,478 | ||
Other comprehensive (loss) / income | ||||
Items that are or may be subsequently reclassified to | ||||
consolidated statement of income: | ||||
Foreign currency translation differences for foreign operations | (4,047) | (421) | ||
Net movement in cash flow hedges - effective portion of | ||||
changes in fair value | - | (604) | ||
Movement in fair value reserve (debt instruments): | ||||
Net change in fair value of debt instruments designated at | ||||
FVOCI | 20 (d) | (648,685) | 279,806 | |
Net amount transferred to consolidated statement of income | 20 (d) | 595,197 | (268,652) | |
(57,535) | 10,129 | |||
Items that will not be reclassified subsequently to | ||||
consolidated statement of income | ||||
Net change in fair value of equity investments designated at | ||||
FVOCI | 20 (d) | 24,093 | 27,378 | |
Total other comprehensive (loss) / income | (33,442) | 37,507 | ||
Total comprehensive income | 818,014 | 806,985 |
The attached notes from 1 to 38 form an integral part of these consolidated financial statements Independent auditors' report is set out on pages 1-5.
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