Doha BankQSE: DHBK

Interim condensed consolidated financial information 30 June 2025

· Issued by Doha Bank
Doha Bank (Q.P.S.C.)

Interim condensed consolidated financial information

30 June 2025

Doha Bank Q.P.S.C.

Interim condensed consolidated financial information

Contents Pages

Independent auditor's review report 1

Interim condensed consolidated statement of financial position 2

Interim condensed consolidated statement of income 3

Interim condensed consolidated statement of comprehensive income 4

Interim condensed consolidated statement of changes in equity 5

Interim condensed consolidated statement of cash flows 6

Notes to the interim condensed consolidated financial information 7-26



Review report on the interim condensed consolidated financial information to the Board of Directors of Doha Bank Q.P.S.C.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Doha Bank

Q.P.S.C. (the "Parent" or the "Bank") and its subsidiaries (together "the Group") as at 30 June 2025, and the related interim condensed consolidated statements of income and interim condensed consolidated statement of comprehensive income for the three-month and six-month periods then ended, and the related interim condensed consolidated statements of changes in equity and interim condensed consolidated statement of cash flows for the six-month period then ended, and other explanatory notes. Management is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34, 'Interim Financial Reporting' ('IAS 34') as issued by the International Accounting Standard Board ("IASB"). Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34 as issued by IASB.

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 14 July 2025

PricewaterhouseCoopers - Qatar Branch, P.O. Box 6689, Doha, Qatar T: +974 4419 2777, F: +974 4467 7528

https://www.pwc.com

Ministry of Commerce and Industry Licence number 6 / Qatar Financial Markets Authority License number 220155

1

Doha Bank Q.P.S.C.

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

As at 30 June 2025

Assets

30June 31 December 30 June

2025 2024 2024

Notes (Reviewed) (Audited) (Reviewed)

Cash and balances with central banks 6,006,929 5,887,697 4,913,002

Due from banks 7 16,719,196 6,842,893 5,284,919

Loans and advances to customers 8 59,977,944 60,983,523 58,953,102

Investment securities 9 37,739,286 34,204,591 34,530,547

Insurance contract assets 12,881 19,052 16,614

Other assets 2,093,439 1,768,912 1,590,923

Investment in an associate 10,405 10,440 10,204

1

Pro2erty, furniture and egui2ment 4852948

Total assets •!az�61o28

Liabilities and equity Liabilities

522,935 585,zo6

110,2:1zp:1� 10�,ss�,01z

Due to banks lO 38,227,486 30,650,927 26,004,005

Customers deposits 11 50,933,682 50,851,776 51,565,513

Debt securities 12 6,690,094 3,832,221 3,661,446

Other borrowings 13 9,416,846 7,396,660 7,443,232

Insurance contract liabilities 38,960 54,723 37,962

Other liabilities 2286010!15 2,612,522 2,532,132

Equity

Share capital Legal reserve

l4

3,100,467

5,110,152

3,100,467

5,110,152

3,100,467

5,110,152

Risk reserve

Fair value reserve

Foreign currency translation reserve Retained earnings

shareholders of the Bank

1,451,600

(212,444)

(86,295) 115151�5

10,878,915

1,451,600

(115,847)

(86,296)

1,358,138

10,818,214

1,416,600

(89,545)

(82,552)

1,185,228

10,640,420

ca2ital

Total eguity

15

�000,000

�z87Bz2!5

1,000,000

14,818,214

1,000,000

14,640,420

Total liabilities and egui�

12a1o�61028

110,247,043

105,885,017

Total liabilities 108,162z113 25,128,829 91,211,59z

Total equity attributable to Instruments eligible as additional Tier 1

The interim condensed consolidated financi I information was approved by the Board of Directors on 14 July 2025 and was 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 �ad Bin Jabor Al Thani

Chairman Managing Director

The attached notes 1 to 21 form part of this interim condensed consolidated financial information. Independent auditors' review repmt is set out on page 1.

2



Interim condensed consolidated statement of income

For the three and six-month periods ended

For the three-month period ended 30 June For the six-month period ended 30 June

Notes

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

Interest income Interest expense

1,529,807

(1,060,795)

1,566,192

(1,080,237)

3,067,754

(2,078,611)

3,100,726

(2,125,967)

Net interest income

469,012

485,955

989,143

974,759

Fee and commission income Fee and commission expense

185,981

(85,465)

157,161

(64,803)

361,473

(159,241)

311,057

(127,843)

Net fee and commission income

100,516

92,358

202,232

183,214

Insurance revenue

22,319

12,538

45,789

44,409

Insurance service expense

(5,597)

1,936

(13,496)

(16,046)

Net expense from reinsurance contracts held

(12,503)

(9,613)

(21,361)

(17,931)

Insurance service results

4,219

4,861

10,932

10,432

Net foreign exchange gain

33,105

32,629

62,207

66,107

Net income from investment securities

10,950

51,017

30,999

86,560

Other operating income

5,173

2,601

9,297

7,915

49,228

86,247

102,503

160,582

Net operating income

622,975

669,421

1,304,810

1,328,987

Staff costs

(149,654)

(137,950)

(297,441)

(274,675)

Depreciation

(17,134)

(20,269)

(34,509)

(40,943)

Net impairment loss on investment

securities

(5)

(7,135)

(163)

(6,813)

Net impairment loss on loans and advances

to customers

(197,352)

(227,116)

(426,646)

(405,978)

Net impairment reversal / (loss) on other

financial facilities

46,141

4,781

104,570

(10,797)

Other expenses

(84,773)

(80,185)

(177,988)

(156,619)

Total expenses and impairment

(402,777)

(467,874)

(832,177)

(895,825)

Profit before tax

Income tax expense

220,198

(4,483)

201,547

(536)

472,633

(5,289)

433,162

(832)

Profit for the period

215,715

201,011

467,344

432,330

Earnings per share

Basic and diluted earnings per share (QR per share)

17

0.07

0.06

0.15

0.14



The attached notes 1 to 21 form part of this interim condensed consolidated financial information.

Independent auditors' review report is set out on page 1.

Interim condensed consolidated statement of comprehensive income

For the three and six-month periods ended

For the three-month period ended 30 June For the six-month period ended 30 June

Notes

2025

(Reviewed)

2024

(Reviewed)

2025

(Reviewed)

2024

(Reviewed)

Profit for the period

215,715

201,011

467,344

432,330

Other comprehensive (loss) / income

Items that are or may be subsequently reclassified to interim condensed consolidated statement of income:

Foreign currency translation differences for foreign operations

Movement in fair value reserve (debt instruments):

Net change in fair value of debt instruments designated at FVOCI

Net amount transferred to interim condensed consolidated statement of income

(272)

231,633

(169,902)

(8)

(163,527)

104,233

1

524,147

(662,903)

(303)

(540,808)

549,221

61,459

(59,302)

(138,755)

8,110

Items that will not be reclassified

subsequently to interim condensed consolidated statement of income

Net change in fair value of equity investments

designated at FVOCI

(46,232)

8,417

42,159

(11,506)

Total other comprehensive income /

(loss)

15,227

(50,885)

(96,596)

(3,396)

Total comprehensive income

230,942

150,126

370,748

428,934



The attached notes 1 to 21 form part of this interim condensed consolidated financial information.

Independent auditors' review report is set out on page 1.

Doha Bank Q.P.S.C.

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

Interim condensed consolidated statement of changes in equity

For the six-month period ended

Total equity attributable to shareholders of the Bank

Foreign

Instrument

currency

eligible as

Share

Legal

Risk

Fair value ranslation

Retained

additional

Total

capital

reserve

reserve

reserve reserve

earnings

Total

Tier 1 capital

equity

Balance at 1 January 2025 (Audited)

Total comprehensive (loss) / income:

3,100,467

5,110,152

1,451,600

(115,847)

(86,296)

1,358,138

10,818,214

4,000,000

14,818,214

Profit for the period

-

-

-

-

-

467,344

467,344

-

467,344

Other comprehensive (loss) / income

-

-

-

(96,597)

1

-

(96,596)

-

(96,596)

Total comprehensive (loss) / income

-

-

-

(96,597)

1

467,344

370,748

-

370,748

Transactions with shareholders:

Dividends for the year 2024 (Note 16)

-

-

-

-

-

(310,047)

(310,047)

-

(310,047)

Balance at 30 June 2025 (Reviewed)

3,100,467

5,110,152

1,451,600

(212,444)

(86,295)

1,515,435

10,878,915

4,000,000

14,878,915

Balance at 1 January 2024 (Audited)

3,100,467

5,110,152

1,416,600

(86,452)

(82,249)

985,503

10,444,021

4,000,000

14,444,021

Total comprehensive (loss) / income:

Profit for the period

-

-

-

-

-

432,330

432,330

-

432,330

Other comprehensive loss

-

-

-

(3,093)

(303)

-

(3,396)

-

(3,396)

Total comprehensive (loss) / income

-

-

-

(3,093)

(303)

432,330

428,934

-

428,934

Transactions with shareholders:

Dividends for the year 2023 (Note 16)

-

-

-

-

-

(232,535)

(232,535)

-

(232,535)

Balance at 30 June 2024 (Reviewed)

3,100,467

5,110,152

1,416,600

(89,545)

(82,552)

1,185,298

10,640,420

4,000,000

14,640,420



The attached notes 1 to 21 form part of this interim condensed consolidated financial information.

Independent auditors' review report is set out on page 1.

Interim condensed consolidated statement of cash flows

For the six-month period ended

For the six-month period ended 30 June

Notes

2025

(Reviewed)

2024

(Reviewed)

Cash flows from operating activities

Profit before tax

472,633

433,162

Adjustments for:

Net impairment loss on loans and advances to customers

426,646

405,978

Net impairment loss on investment securities

163

6,813

Net impairment (reversal) / loss on other financial facilities

(104,570)

10,797

Depreciation

34,509

40,943

Amortisation of financing cost

10,136

7,877

Dividend income

(28,859)

(45,394)

Net gain from investment securities

(2,140)

(41,166)

(Loss) / gain on sale of property, furniture and equipment

(2,253)

(46)

Profit before changes in operating assets and liabilities

806,265

818,964

Change in due from banks and balances with central banks

204,176

(1,351,060)

Change in loans and advances to customers

608,331

(1,618,761)

Change in other assets

(318,356)

226,073

Change in due to banks

7,576,559

2,095,736

Change in customers deposits

81,906

(7,260)

Change in other liabilities

293,582

105,706

Social and sports fund contribution

(21,286)

(19,237)

Income tax paid

(1,147)

(595)

Net cash flows generated from operating activities

9,230,030

249,566

Cash flows from investing activities

Acquisition of investment securities

(4,999,233)

(9,382,743)

Proceeds from sale of investment securities

1,369,953

5,269,524

Acquisition of property, furniture and equipment

(2,769)

(6,121)

Dividend received

28,859

45,394

Proceeds from sale of property, furniture and equipment

26,820

113

Net cash flows used in investing activities

(3,576,370)

(4,073,833)

Cash flows from financing activities

Repayment of other borrowings

(1,598,196)

(123,898)

Proceed from other borrowings

3,618,382

1,638,675

Repayment of debt securities

(68,506)

(755,554)

Proceeds from debt securities

2,916,243

1,820,750

Payment of lease liabilities

(11,825)

(15,340)

Dividends paid

(310,047)

(232,535)

Net cash flows generated from financing activities

4,546,051

2,332,098

Net increase / (decrease) in cash and cash equivalents

10,199,711

(1,492,169)

Cash and cash equivalents at the beginning of the period

3,900,032

4,636,564

Cash and cash equivalents at the end of the period

19

14,099,743

3,144,395

Operational cash flows from interest and dividend:

Interest received

2,978,107

3,045,647

Interest paid

2,059,455

2,118,596

Dividends received

28,859

45,394

Non cash item disclosure:

Total addition of right of use assets and corresponding addition to lease liabilities amounted to QR 0.99 million as at 30 June 2025 (30 June 2024: QR 1.34 million).

Independent auditors' review report is set out on page 1.



The attached notes 1 to 21 form part of this interim condensed consolidated financial information.

  1. Reporting entity

    Doha Bank Q.P.S.C. ("Doha Bank" or the "Bank") is an entity domiciled in the State of Qatar and was incorporated on 15 March 1979 as a Joint Stock Company under Emiri Decree No. 51 of 1978. The commercial registration of the Bank is 7115. The address of the Bank's registered office is Doha Bank Tower, Corniche Street, West Bay, P.O. Box 3818, Doha Qatar.

    Doha Bank is engaged in conventional banking activities and operates through its head office in Qatar (Doha) and has 14 local branches, 2 corporate service centers and 1 corporate branch. Internationally the Bank has four overseas branches, 1 each in the United Arab Emirates and State of Kuwait, and 2 branches in the Republic of India, with representative offices in Bangladesh, China, Japan, Nepal, Singapore, South Africa, Turkey and United Kingdom.

    The interim condensed consolidated financial information for the period ended 30 June 2025 comprise the Bank and its subsidiaries (together referred to as "the Group").

    The principal subsidiaries of the Group are as follows:

    Percentage of ownership

    Company's name

    Country of incorporation

    Company's

    capital

    Company's

    activities

    30 June

    2025

    30 June

    2024

    Sharq Insurance L.L.C.

    Qatar

    100,000

    General insurance

    100%

    100%

    Doha Finance Limited

    Cayman Island

    182

    Debt issuance

    100%

    100%

    Derivatives

    DB Securities Limited

    Cayman Island

    182

    transactions

    100%

    100%

    The interim condensed consolidated financial information of the group for the period ended 30 June 2025 were authorised for issuance in accordance with a resolution of the Board of Directors on 14 July 2025.

  2. Basis of preparation

    1. Statement of compliance

      The interim condensed consolidated financial information has been prepared in accordance with IAS 34, Interim Financial Reporting as issued by the International Accounting Standard Board ("IASB").

      The interim condensed consolidated financial information does not contain all information and disclosures required in the consolidated financial statements and should be read in conjunction with the Group's consolidated financial statements as at 31 December 2024. The accounting policies adopted in the preparation of the interim condensed consolidated financial information is consistent with those followed in the preparation of the Group's consolidated financial statements for the year ended 31 December 2024 except for the adoption of new and amended standards as set out in note 3. The results for the six-month period ended 30 June 2025 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2025.

      The Group presents its interim condensed consolidated financial information broadly in the order of liquidity.

    2. Estimates and judgements

      The preparation of the interim condensed consolidated financial information in conformity with IFRS Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates.

      In preparing the interim condensed consolidated financial information, significant judgements made by management in applying the Group's accounting policies, key sources of estimation uncertainty, and underlying estimates were the same as those that were applied to the consolidated financial statements as at and for the year ended 31 December 2024. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

      1. Basis of preparation (continued)

    3. Basis of measurement

      The interim condensed consolidated financial information has been prepared on the historical cost basis except for the following financial assets that have been measured at fair value:

      • Investment securities designated at fair value through profit or loss ("FVTPL").

      • Derivative financial instruments measured at FVTPL;

      • Other financial assets designated at FVTPL;

      • Investment securities measured at fair value through other comprehensive income ("FVOCI"); and

      • Recognised financial assets and financial liabilities designated as hedged items in qualifying fair value hedge relashionships to the extent of risks being hedged.

    4. Functional and presentation currency

      The interim condensed consolidated financial information is presented in Qatari Riyals ("QR"), which is the Group's presentation currency, unless otherwise indicated. Financial information presented in QR has been rounded to the nearest thousand. Items included in the interim condensed consolidated financial information of each of the subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates.

    5. Financial risk management

      The Group's financial risk management objectives and policies are consistent with those disclosed in the

      consolidated financial statements as at and for the year ended 31 December 2024.

      1. Material accounting policies

        The accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial information is the same as those followed in the preparation of the Group's consolidated financial statements as at and for the year ended 31 December 2024, except as noted below:

        1. New standards, amendments and interpretations effective from 1 January 2025

          During the period, the below IFRS Accounting Standards and amendments to IFRS Accounting Standards have been applied by the Group in preparation of this interim condensed consolidated financial information. The adoption of the below IFRS Accounting Standards and amendments to IFRS Accounting Standards did not have any impact on the amounts recognized in prior and current periods and are not expected to significantly affect the future reporting periods.

          - Lack of exchangeability - amendment to IAS 21 (effective 1 January 2025)

          International tax reform - Pillar two model rules - amendments to IAS 12

          The Parent Bank's jurisdiction ("State of Qatar") is committed to adopting and implementing the Base Erosion and Profit Shifting (BEPS) Pillar Two Anti Global Base Erosion ("GloBE") Rules. These rules incorporate various mechanisms to ensure that large multinational enterprises pay a minimum tax of 15% on excess profits in each jurisdiction they operate in. Notably, Qatar operations of the Parent Bank are presently exempt from income tax.

          On 2 February 2023, Law No. 11 of 2022 was published, reaffirming the State of Qatar's commitment to combat international tax avoidance. On 27 March 2025, the State of Qatar published amendments to the Income Tax Law No. (24) of 2018 in the Official Gazette. These amendments introduce an Income Inclusion Rule (IIR) and a Domestic Minimum Top-up Tax (DMTT) applicable to multinational groups, in accordance with the Base Erosion and Profit Shifting (BEPS) Pillar Two Anti-Global Erosion (GloBE) framework. The GloBE rules will take effect for accounting periods beginning on 1 January 2025.

  3. Material accounting policies (CONTINUED)

    1. New standards, amendments and interpretations effective from 1 January 2025 (Continued)

      The legislation also outlined that Executive Regulations, detailing the essential provisions of GloBE implementation in Qatar, including the potential exclusions, will be issued in due course. The Executive Regulations have not yet been published as of the date of the approval of the interim condensed consolidated financial information.

      Therefore, if those reliefs are not available due to any reason whatsoever, the tax liability under the GloBE rules for the period ended 30 June 2025 based on high level estimate could be up to QAR 68 million.

    2. New standards, amendments and interpretations issued but not effective from 1 January 2025

A number of standards and amendments to standards are issued but not yet effective and the Group has not adopted these in the preparation of the interim condensed consolidated financial information. The standards may have an impact on the Group's interim condensed consolidated financial information, however, the Group is currently evaluating the impact of these new standards. The Group will adopt these new standards on the respective effective dates.

  1. Financial Risk Management

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2024.

Exposure and related expected credit losses ("ECL") movements

30 June 2025 (Reviewed)

Stage 1

Stage 2

Stage 3

Total

Gross exposures subject to ECL - as at 30 June

  • Loans and advances to customers

  • Investment securities (debt)

  • Loan commitments and financial guarantees

  • Due from banks and balances with central banks

41,870,489

36,773,147

13,338,962

22,193,114

18,933,815

-1,491,221

1,391

5,043,557

27,575

614,176

19,504

65,847,861

36,800,722

15,444,359

22,214,009

114,175,712

20,426,427

5,704,812

140,306,951

Opening balance of ECL / impairment - as at 1 January

  • Loans and advances to customers

  • Investment securities (debt)

  • Loan commitments and financial guarantees

  • Due from banks and balances with central banks

242,417

4,965

4,082

7,627

1,337,688

-70,676

-

3,679,020

27,398

504,298

19,438

5,259,125

32,363

579,056

27,065

259,091

1,408,364

4,230,154

5,897,609

Net charge and transfers for the period (net of foreign currency

translation)

  • Loans and advances to customers*

  • Investment securities (debt)

  • Loan commitments and financial guarantees

  • Due from banks and balances with central banks

92,260

163

(1,053)

4,728

223,882

-(68,932)

-

361,120

177

(40,788)

-

677,262

340

(110,773)

4,728

96,098

154,950

320,509

571,557

Write offs and other adjustments during the period

  • Loans and advances to customers

  • Investment securities (debt)

  • Loan commitments and financial guarantees

  • Due from banks and balances with central banks

-

-

-

-

-

-

-

-

(66,470)

-

-

-

(66,470)

-

-

-

-

-

(66,470)

(66,470)

Closing balance of ECL / impairment - as at 30 June

  • Loans and advances to customers**

  • Investment securities (debt) ***

  • Loan commitments and financial guarantees

  • Due from banks and balances with central banks

334,677

5,128

3,029

12,355

1,561,570

-1,744

-

3,973,670

27,575

463,510

19,438

5,869,917

32,703

468,283

31,793

355,189

1,563,314

4,484,193

6,402,696

* Stage 3 provision balance includes net interest suspended on loans and advances to customers amounting to QR 194 million.

** Stage 3 provision includes a net transfer of provision from loan and commitment and financial guarantee to loans and advances amounting to QR 64 million.

*** This balance includes expected credit loss on investment in debt securities accounted at FVOCI and amortised cost

4. Financial Risk Management (continued)

31 December 2024 (Audited)

Stage 1 Stage 2 Stage 3 Total

Gross exposures subject to ECL - as at 31 December

- Loans and advances to customers

42,220,204

19,102,885

4,919,559

66,242,648

- Investment securities (debt)

33,359,436

-

27,398

33,386,834

- Loan commitments and financial guarantees

12,016,097

1,553,312

664,625

14,234,034

- Due from banks and balances with central banks

12,252,835

980

20,184

12,273,999

99,848,572

20,657,177

5,631,766

126,137,515

Opening balance of ECL / impairment - as at 1 January

- Loans and advances to customers

92,255

999,945

2,693,838

3,786,038

- Investment securities (debt)

4,895

306

3,760

8,961

- Loan commitments and financial guarantees

8,735

5,880

541,585

556,200

- Due from banks and balances with central banks

1,609

5,120

14,214

20,943

107,494

1,011,251

3,253,397

4,372,142

Net charge and transfers for the period (net of foreign currency

translation)

- Loans and advances to customers*

150,162

337,743

1,054,029

1,541,934

- Investment securities (debt)

70

(306)

17,106

16,870

- Loan commitments and financial guarantees

(4,653)

64,796

(12,638)

47,505

- Due from banks and balances with central banks

6,018

(5,120)

11,756

12,654

151,597

397,113

1,070,253

1,618,963

Write offs and other adjustments during the period

- Loans and advances to customers

-

-

(68,847)

(68,847)

- Investment securities (debt)

-

-

6,532

6,532

- Loan commitments and financial guarantees

-

-

(24,649)

(24,649)

- Due from banks and balances with central banks

-

-

(6,532)

(6,532)

-

-

(93,496)

(93,496)

Closing balance of ECL / impairment - as at 31 December

- Loans and advances to customers**

242,417

1,337,688

3,679,020

5,259,125

- Investment securities (debt) ***

4,965

-

27,398

32,363

- Loan commitments and financial guarantees

4,082

70,676

504,298

579,056

- Due from banks and balances with central banks

7,627

-

19,438

27,065

259,091

1,408,364

4,230,154

5,897,609

* Stage 3 provision balance includes net interest suspended on loans and advances to customers amounting to QR 372 million.

** Stage 3 provision includes a net transfer of provision from loan and commitment and financial guarantee to loans and advances amounting to QR 29 million.

*** This balance includes expected credit loss on investment in debt securities accounted at FVOCI and amortised cost.

  1. Financial Risk Management (continued)

    30 June 2024 (Reviewed)

    Stage 1 Stage 2 Stage 3 Total

    Gross exposures subject to ECL - as at 30 June

    - Loans and advances to customers

    38,766,741

    19,880,662

    4,731,127

    63,378,530

    - Investment securities (debt)

    33,617,990

    -

    27,524

    33,645,514

    - Loan commitments and financial guarantees

    10,956,662

    1,723,305

    703,679

    13,383,646

    - Due from banks and balances with central banks

    9,307,771

    340,214

    20,053

    9,668,038

    92,649,164

    21,944,181

    5,482,383

    120,075,728

    Opening balance of ECL / impairment - as at 1 January

    - Loans and advances to customers

    92,255

    999,945

    2,693,838

    3,786,038

    - Investment securities (debt)

    4,895

    306

    3,760

    8,961

    - Loan commitments and financial guarantees

    8,735

    5,880

    541,585

    556,200

    - Due from banks and balances with central banks

    1,609

    5,120

    14,214

    20,943

    107,494

    1,011,251

    3,253,397

    4,372,142

    Net charge and transfers for the period (net of foreign currency

    translation)

    - Loans and advances to customers*

    35,670

    191,636

    476,281

    703,587

    - Investment securities (debt)

    218

    (306)

    6,867

    6,779

    - Loan commitments and financial guarantees

    (3,851)

    3,130

    (1,914)

    (2,635)

    - Due from banks and balances with central banks

    7,314

    6,672

    11

    13,997

    39,351

    201,132

    481,245

    721,728

    Write offs and other adjustments during the period

    - Loans and advances to customers

    -

    -

    (64,197)

    (64,197)

    - Investment securities (debt)****

    -

    -

    6,522

    6,522

    - Loan commitments and financial guarantees

    -

    -

    -

    -

    - Due from banks and balances with central banks

    -

    -

    (6,522)

    (6,522)

    -

    -

    (64,197)

    (64,197)

    Closing balance of ECL / impairment - as at 30 June

    - Loans and advances to customers**

    127,925

    1,191,581

    3,105,922

    4,425,428

    - Investment securities (debt) ***

    5,113

    -

    17,149

    22,262

    - Loan commitments and financial guarantees

    4,884

    9,010

    539,671

    553,565

    - Due from banks and balances with central banks

    8,923

    11,792

    7,703

    28,418

    146,845

    1,212,383

    3,670,445

    5,029,673

    * Stage 3 provision balance includes net interest suspended on loans and advances to customers amounting to QR 190 million.

    ** Stage 3 provision includes a net transfer of provision from loan and commitment to loans and advances and financial guarantee amounting to Nil.

    *** This balance includes expected credit loss on investment in debt securities accounted at FVOCI and amortised cost.

  2. Operating segments

    1. By operating segment

      The Group organizes and manages its operations by two business segments, which comprise conventional banking and insurance activities.

      Conventional banking

      • Corporate banking provides a range of product and service offerings to businesses and corporate customers including funded and non-funded credit facilities and deposits to corporate customers. It also undertakes funding and centralized risk management activities through borrowings, issue of debt securities, use of derivatives for risk management purposes and investing in liquid assets such as short-term placements and corporate and government debt securities.

      • Retail banking provides a diversified range of products and services to individuals. The range includes loans, credit cards, deposits and other transactions with retail customers.

      • Unallocated assets, liabilities and revenue are related to certain central functions and non-core business operations like common property, furniture and equipment, cash functions, development projects related to payables ect.

Insurance activities

Insurance activities to customers include effecting contracts of insurance, carrying out contracts of insurance.

Information regarding the results, assets and liabilities of each reportable segment is included below. Performance is measured based on segment contribution, assets and liabilities, as included in the internal management reports that are reviewed by the management. Segment contribution is used to measure performance as management believes that such information is the most relevant in evaluating the results of certain segments.

Details of each segment as of and for the six-month period ended 30 June 2025 and 30 June 2024 are stated below:

For the six-month period ended 30 June 2025 (Reviewed) Corporate banking Conventional banking Retail banking Unallocated Total Insurance Total

Net interest income

Net income on insurance activities Net other operating income / (loss)

926,156

-186,113

62,987

-109,504

-

-9,297

989,143

-304,914

-10,932

(179)

989,143

10,932

304,735

Segmental net revenue

1,112,269

172,491

9,297

1,294,057

10,753

1,304,810

Total expenses

-

-

-

(510,141)

(5,086)

(515,227)

Net impairment loss / (reversal) on loans and advances to customers

(495,655)

69,009

-

(426,646)

-

(426,646)

Net impairment loss on investment securities

(163)

-

-

(163)

-

(163)

Net impairment reversal on other financial facilities

104,570

-

-

104,570

-

104,570

Net profit

461,677

5,667

467,344

  1. Operating segments (continued)

    1. By operating segment (continued)

      For the six-month period ended 30 June 2024 (Reviewed) Corporate banking Conventional banking Retail banking Unallocated Total Insurance Total

      Net interest income

      908,775

      65,984

      -

      974,759

      -

      974,759

      Net income on insurance activities

      -

      -

      -

      -

      10,432

      10,432

      Net other operating income

      223,891

      111,081

      7,915

      342,887

      909

      343,796

      Segmental net revenue

      1,132,666

      177,065

      7,915

      1,317,646

      11,341

      1,328,987

      Total expenses

      -

      -

      -

      (467,456)

      (5,613)

      (473,069)

      Net impairment loss / (reversal) on loans and advances to customers

      (407,529)

      1,551

      -

      (405,978)

      -

      (405,978)

      Net impairment loss on investment securities

      (6,813)

      -

      -

      (6,813)

      -

      (6,813)

      Net impairment loss on other financial facilities

      (10,797)

      -

      -

      (10,797)

      -

      (10,797)

      Net profit

      426,602

      5,728

      432,330

      Conventional banking

      As at 30 June 2025 (Reviewed)

      Corporate banking

      Retail

      banking Unallocated Total Insurance Total

      Assets

      109,848,468

      4,334,730

      8,599,197

      122,782,395

      253,228

      123,035,623

      Investment in an associate

      -

      -

      -

      -

      -

      10,405

      Total assets

      109,848,468

      4,334,730

      8,599,197

      122,782,395

      253,228

      123,046,028

      Liabilities

      94,211,272

      12,462,930

      1,432,096

      108,106,298

      60,815

      108,167,113

      Contingent liabilities

      15,278,383

      165,976

      -

      15,444,359

      -

      15,444,359

      As at 31 December 2024 (Audited)

      Assets

      97,683,914

      4,085,512

      8,205,596

      109,975,022

      261,581

      110,236,603

      Investment in an associate

      -

      -

      -

      -

      -

      10,440

      Total assets

      97,683,914

      4,085,512

      8,205,596

      109,975,022

      261,581

      110,247,043

      Liabilities

      82,565,152

      11,367,611

      1,423,634

      95,356,397

      72,432

      95,428,829

      Contingent liabilities

      14,128,968

      105,066

      -

      14,234,034

      -

      14,234,034

      Intra-group transactions are eliminated from this segmental information amounted to as at 30 June 2025: Assets: QR 163 million and Liabilities: QR 63 million (31 December 2024: Assets: QR 173 million and Liabilities: QR 73 million, 30 June 2024: Assets: QR 165 million and Liabilities: QR 65 million).

      1. Operating segments (continued)

    2. Geographical areas

The following table shows the geographic distribution of the Group's operating income based on the geographical location of where the business is booked by the Group.

Qatar

Other GCC

India

Total

30 June 2025 (Reviewed)

Net operating income

1,229,129

64,419

11,262

1,304,810

Net profit

401,307

64,175

1,862

467,344

Total assets

117,005,867

5,386,889

653,272

123,046,028

Total liabilities

103,223,679

4,452,013

491,421

108,167,113

Qatar

Other GCC

India

Total

31 December 2024 (Audited)

Net operating income 2,498,248

133,696

22,334

2,654,278

Net profit 776,231

69,485

5,740

851,456

Total assets 104,233,564

5,315,035

698,444

110,247,043

Total liabilities 90,449,927

4,439,995

538,907

95,428,829

Qatar

Other GCC

India

Total

30 June 2024 (Reviewed)

Net operating income 1,166,264

151,037

11,686

1,328,987

Net profit 351,302

77,815

3,213

432,330

Total assets 100,009,481

5,235,443

640,093

105,885,017

Total liabilities 86,407,614

4,356,880

480,103

91,244,597

6. Fair value of financial instruments

Fair value hierarchy

All financial instruments for which fair value is recognised or disclosed are categorised within the fair value hierarchy, described as follows, based on the lowest level input that is significant to the fair value measurement as a whole:

Level 1 - Quoted market price (unadjusted) in an active market for an identical instrument.

Level 2 - Valuation techniques based on observable inputs, either directly (i.e. as prices) or indirectly (i.e. derived from prices). This category includes instruments valued using quoted market prices in active markets for similar instruments; quoted prices for identical or similar instruments in markets that are considered less than active; or other valuation techniques where all significant inputs are directly or indirectly observable from market data.

Level 3 - Valuation techniques using significant unobservable inputs. This category includes all instruments where the valuation technique includes inputs not based on observable data and the unobservable inputs have a significant effect on the instrument's valuation. This category includes instruments that are valued based on quoted prices for similar instruments where significant unobservable adjustments or assumptions are required to reflect differences between the instruments.

For financial instruments that are recognised at fair value on a recurring basis, the Group determines whether transfers have occurred between levels in the hierarchy by re-assessing categorisation (based on the lowest level input that is significant to the fair value measurement as a whole) at the end of each reporting period.

  1. Fair value of financial instruments (continued)

Valuation techniques

Fair values of financial assets and financial liabilities that are traded in active markets are based on quoted market prices or dealer price quotations. For all other financial instruments the Group determines fair values using valuation techniques

Valuation techniques include net present value and discounted cash flow models, comparison to similar instruments for which market observable prices exist. Assumptions and inputs used in valuation techniques include risk-free and benchmark interest rates, credit spreads and other premium used in estimating discount rates, bond and equity prices, foreign currency exchange rates, equity and equity index prices and expected price volatilities and correlations. The objective of valuation techniques is to arrive at a fair value determination that reflects the price of the financial instrument at the reporting date that would have been determined by market participants acting at arm's length.

The objective of valuation techniques is to arrive at a fair value measurement that reflects the price that would be received to sell the asset or paid to transfer the liability in an orderly transaction between market participants at the measurement date.

The Group uses widely recognized valuation models to determine the fair value of common and simple financial instruments, such as interest rate and currency swaps, that uses only observable market data and require little management judgment and estimation. Observable prices or model inputs are usually available in the market for listed debt and equity securities, exchange-traded derivatives and simple OTC derivatives such as interest rate swaps. The availability of observable market prices and model inputs reduces the need for management judgment and estimation and also reduces the uncertainty associated with determining fair values. The availability of observable market prices and inputs varies depending on the products and markets and is prone to changes based on specific events and general conditions in the financial markets.

The fair value for financial instruments that are not actively traded is determined using valuation techniques which maximise the use of observable market prices. Valuation techniques include:

  • The use of maket standard discounting methodologies; and

  • Other valuation techniques widely used and accepted by market participants.

Instruments

Balance sheet category

Includes

Valuation

Non asset backed debt securities

Investment securities

State and other government bonds, corporate bonds and commercial paper

Valued using observable market prices, which are source from independent pricing services, broker quotes or inter-dealer prices.

Equity product

Investment securities

Equity securities

Valued using industry standard models based on observable parameters such as

stock prices, dividends, volatilities and interest rates.

Interest rate products

Derivatives

Interest rate derivates

Industry standard valuation models provided by independent pricing services are used to calculate the expected future value of payments by products, which is discounted back to present value. The model's interest rate inputs are benchmarked against an active quoted interest rates in the swap, bond, future markets. Interest rate volatilities are sourced from brokers and consensus

data providers.

Forward foreign exchange (FX

products)

Derivatives

FX swap, FX forward contracts, FX options

Derived from market inputs or consens procing providers using industry

standards models.

The Group values investment in equity classified as level 3 based on the net assets valuation method due to the unavailability of market and comparable financial information. Net assets values were determined based on the latest available audited/ historical financial information.

6. Fair value of financial instruments (continued)

The foreign currency forward contracts are measured based on observable spot exchange rates, the yield curves of the respective currencies as well as the currency basis spreads between the respective currencies. All contracts are fully cash collateralised, thereby eliminating both counterparty and the Group's own credit risk.

Financial investments classification

As at 30 June 2025, the Group held the following classes of financial instruments measured at fair value:

Level 1

Level 2

Level 3

Total

At 30 June 2025 (Reviewed)

Financial assets measured at fair value:

Investment securities measured at FVOCI

Equities

776,411

-

81,628

858,039

State of Qatar debt securities

16,130,014

1,671,010

-

17,801,024

Other debt securities

13,042,795

-

-

13,042,795

Investment securities measured at FVTPL

Mutual funds and equities

108,797

-

-

108,797

Derivative instruments:

Interest rate swaps

-

914,781

-

914,781

Forward foreign exchange contracts

-

121,836

-

121,836

30,058,017

2,707,627

81,628

32,847,272

Financial liabilities measured at fair value:

Derivative instruments:

Interest rate swaps

-

400,362

-

400,362

Forward foreign exchange contracts

-

8,240

-

8,240

-

408,602

-

408,602

Level 1

Level 2

Level 3

Total

At 31 December 2024 (Audited) Financial assets measured at fair value: Investment securities measured at FVOCI

Equities

770,324

-

46,093

816,417

State of Qatar debt securities

13,899,504

1,668,260

-

15,567,764

Other debt securities

11,963,507

-

-

11,963,507

Investment securities measured at FVTPL

Mutual funds and equities

29,515

-

-

29,515

Derivative instruments:

Interest rate swaps

-

1,217,521

-

1,217,521

Forward foreign exchange contracts

-

9,753

-

9,753

26,662,850

2,895,534

46,093

29,604,477

Financial liabilities measured at fair value:

Derivative instruments:

Interest rate swaps

-

124,799

-

124,799

Forward foreign exchange contracts

-

201,973

-

201,973

-

326,772

-

326,772

  1. Fair value of financial instruments (continued)

    Level 1

    Level 2

    Level 3

    Total

    At 30 June 2024 (Reviewed)

    Financial assets measured at fair value: Investment securities measured at FVOCI Equities

    802,466

    -

    46,196

    848,662

    State of Qatar debt securities

    13,891,055

    2,677,760

    -

    16,568,815

    Other debt securities

    10,527,913

    -

    -

    10,527,913

    Investment securities measured at FVTPL

    Mutual funds and equities

    54,369

    -

    -

    54,369

    Derivative instruments:

    Interest rate swaps

    -

    1,129,037

    -

    1,129,037

    Forward foreign exchange contracts

    -

    1,949

    -

    1,949

    25,275,803

    3,808,746

    46,196

    29,130,745

    Financial liabilities measured at fair value:

    Derivative instruments:

    Interest rate swaps

    -

    119,077

    -

    119,077

    Forward foreign exchange contracts

    -

    179,414

    -

    179,414

    -

    298,491

    -

    298,491

    There have been no transfers between level 1 and level 2 during the periods ended 30 June 2025 and 2024 and the year ended 31 December 2024.

    Under level 3, the Group has designated FVOCI investments in a small portfolio of unlisted equity securities of non banking financial institutions.

    The Group chose this presentation alternative because the investments were made for strategic purposes rather than with a view to profit on a subsequent sale, and there are no plans to dispose of these investments in the short or medium term.

    The Management assumes that the fair value of financial assets and liabilities carried at amortised cost are equal to the carrying value, hence, not included in the fair value hierarchy table. Fair value of investment securities carried at amortised cost amounts to QR 5,446 million (31 December 2024: QR 5,350 million; 30 June 2024: QR 6,076 million).

  2. Due from banks

30 June

2025

(Reviewed)

31 December

2024

(Audited)

30 June

2024

(Reviewed)

Current accounts

2,813,786

315,819

433,682

Placements

8,740,885

2,288,125

906,357

Loans to banks

5,189,357

4,261,077

3,963,144

Interest receivable

6,961

4,937

10,154

Impairment allowance for ECL

(31,793)

(27,065)

(28,418)

16,719,196

6,842,893

5,284,919

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