Doha Bank (Q.P.S.C.)
Interim condensed consolidated financial information
30 September 2024
Doha Bank Q.P.S.C.
Interim condensed consolidated financial information
CONTENTS | PAGE(S) |
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 | 7-22 |
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 September 2024, and the related interim condensed consolidated statements of income and comprehensive income for the three month and nine month periods then ended, and the related interim condensed consolidated statements of changes in equity and cash flows for the nine-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
21 October 2024
PricewaterhouseCoopers - Qatar Branch, P.O.Box: 6689, Doha, Qatar. | |
Ministry of Commerce and Industry License number 6 / Qatar Financial Markets Authority License number 120155 | 1 |
T: +974 4419 2777, F:+974 4467 7528, www.pwc.com/me |
Doha Bank Q.P.S.C.
(All amounts are exeressed in '000 Qatari Ri!!._als unless othenvise stated2
liTERIM CO'DEiSED CONSOLIDATED STATE:vIEJT OF FINA;:CIAL POSITIO: ,- J t _;o Sep tern her 202-1
30 September | 31 December | 30 September | ||||
2024 | 2023 | 2023 | ||||
'otes | (Reviewed) | (Audited) | (Reviewed) | |||
Assets | 4,842,101 | 3,198,488 | ||||
Cash and balances with central banks | 5,190,068 | |||||
Due from banks | 4,776,084 | 5,496,929 | 6,751,769 | |||
Loans and advances to customers | 61,139,935 | 58,009,676 | 56,678,613 | |||
- Investment securities | 9 | 35,753,980 | 30,386,048 | 27,333,213 | ||
Insurance contract assets* | 13J47 | 14,932 | 5,597 | |||
Other assets | 2,435,644 | 1,818,678 | 1,690,483 | |||
Investment in an associate | 10,153 | 10,224 | 9,836 | |||
Property, furniture and equipment | 573J30 | 619,229 | 627,136 | |||
Total assets | 109,892,541 | 101,197,817 | 96,295,135 | |||
Liabilities and Equity | ||||||
Liabilities | 23,908,269 | 23,793,247 | ||||
Due to banks | 10 | 28,826,121 | ||||
Customers deposits | 11 | 51,863,972 | 51,572,773 | 45,310,503 | ||
Debt securities | 12 | 3,793,179 | 2,588,373 | 2,533,764 | ||
Other borrowings | l .� | 7,457J58 | 5,928,455 | 7,129,281 | ||
Insurance contract liabilities* | 36J22 | 42,384 | 17,313 | |||
Other liabilities | 2,982,235 | 2,713,542 | 3,136,919 | |||
Total liabilities | 94,959,187 | 86,753,796 | 81,921,027 | |||
Equity | 3,100,467 | 3,100,467 | ||||
Share capital | 1-1 | 3,100,467 | ||||
Legal reserve | 5,110,152 | 5,110,152 | 5,095,673 | |||
Risk reserve | 1,416,600 | 1,416,600 | 1,312,600 | |||
Fair value reserve | (53,980) | (86,452) | (222,998) | |||
Foreign currency translation reserve | (83,263) | (82,249) | (82,228) | |||
Retained earnings | 1,443J78 | 985,503 | 1,170,594 | |||
Total equity attributable to shareholders of the | 10,444,021 | 10,374,108 | ||||
Bank | 10,933J54 | |||||
Instruments eli�ble as additional Tier I caeital | I:°' | 4,000,000 | 4,000,000 | 4,000,000 | ||
Total equity | 14,933J54 | 14,444,021 | 14,374,108 | |||
Total liabilities and equity | 109,892,541 | 101,197,817 | 96,295,135 |
* Refer to note 22 for change in comparatives.
The interim condensed consolidated financial informationwas approved by the Board of Directors on 21 October 2024 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 Mohammad Bin Jabor Al Thani |
Chairman | Managing Director |
The attached notes 1 to 22 form part of this interim condensed consolidated financial information. Indeeendent auditors' review reeort is set out on eage 1.
2
Doha Bank Q.P.S.C.
(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)
INTERIM CONDENSED CONSOLIDATED STATEMENT OF INCOME
For the three and nine-month periods ended
For the three-month | For the nine-month | ||||
period ended 30 | period ended | ||||
September | 30 September | ||||
2024 | 2023 | 2024 | 2023 | ||
Note | (Reviewed) | (Reviewed) | (Reviewed) | (Reviewed) | |
Interest income | 1,664,700 | 1,449,152 | 4,794,971 | 4,054,160 | |
Interest expense | (1,152,841) | (891,470) | (3,278,808) | (2,498,327) | |
Net interest income | 511,859 | 557,682 | 1,516,163 | 1,555,833 | |
Fee and commission income | 171,386 | 144,761 | 482,443 | 440,987 | |
Fee and commission expense | (66,437) | (54,930) | (194,280) | (163,892) | |
Net fee and commission income | 104,949 | 89,831 | 288,163 | 277,095 | |
Insurance revenue * | 12,915 | 54,199 | |||
15,145 | 59,554 | ||||
Insurance service expense* | (665) | 1,795 | (16,711) | (14,749) | |
Net expense from reinsurance contracts held* | (9,344) | 55,823 | (27,275) | 42,736 | |
Net income from insurance activities | 5,136 | 70,533 | 15,568 | 82,186 | |
Net foreign exchange gain | 33,136 | 28,641 | 99,243 | 81,986 | |
Net income from investment securities | 40,525 | 39,500 | 97,540 | 125,633 | |
Other operating income | 4,318 | 3,424 | 12,233 | 12,026 | |
77,979 | 71,565 | 209,016 | 219,645 | ||
Net operating income | 699,923 | 789,611 | 2,028,910 | 2,134,759 | |
Staff costs | (145,354) | (129,588) | (420,029) | (389,761) | |
Depreciation | (19,095) | (22,048) | (60,038) | (67,264) | |
Net impairment (loss) / reversal on investment | |||||
securities | (55) | (2,274) | (6,868) | 4,415 | |
Net impairment loss on loans and advances to | |||||
customers | (177,315) | (297,214) | (583,293) | (768,931) | |
Net impairment reversal / (loss) on other | |||||
financial facilities | 4,514 | 8,257 | (6,283) | 21,372 | |
Other expenses | (101,249) | (88,944) | (257,868) | (235,603) | |
Total expenses and impairment | (438,554) | (531,811) | (1,334,379) | (1,435,772) | |
Profit before tax | 261,369 | 257,800 | 694,531 | 698,987 | |
Income tax expense | (3,289) | (22,994) | (4,121) | (72,134) | |
Profit for the period | 258,080 | 234,806 | 690,410 | 626,853 | |
Earnings per share | |||||
Basic and diluted earnings per share (QR per | |||||
share) | 17 | 0.08 | 0.08 | 0.22 | 0.20 |
* Refer to note 22 for change in comparatives.
The attached notes 1 to 22 form part of this interim condensed consolidated financial information. Independent auditors' review report is set out on page 1.
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Doha Bank Q.P.S.C.
(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)
INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME For the three and nine-month periods ended
For the three-month | For the nine-month | |||
period ended 30 September | period ended 30 September | |||
2024 | 2023 | 2024 | 2023 | |
Note | (Reviewed) | (Reviewed) | (Reviewed) | (Reviewed) |
Profit for the period | 258,080 | 234,806 | 690,410 | 626,853 |
Other comprehensive income | ||||
Items that are or may be subsequently | ||||
reclassified to interim condensed | ||||
consolidated statement of income: | ||||
Foreign currency translation differences for | ||||
foreign operations | (711) | (1,997) | (1,014) | (400) |
Net movement in cash flow hedges - effective | ||||
portion of changes in fair value | - | (679) | - | (604) |
Movement in fair value reserve (debt | ||||
instruments): | ||||
Net change in fair value of debt instruments | ||||
designated at FVOCI | 1,060,777 | (683,837) | 519,969 | (778,903) |
Net amount transferred to interim condensed | ||||
consolidated statement of income | (1,060,853) | 612,674 | (511,632) | 661,061 |
(787) | (73,839) | 7,323 | (118,846) | |
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 | 35,641 | 27,778 | 24,135 | 19,828 |
Total other comprehensive income / (loss) | 34,854 | (46,061) | 31,458 | (99,018) |
Total comprehensive income | 292,934 | 188,745 | 721,868 | 527,835 |
The attached notes 1 to 22 form part of this interim condensed consolidated financial information. Independent auditors' review report is set out on page 1.
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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 nine-month period ended
Total equity attributable to shareholders of the Bank | |||||||||||||||||
Foreign | Instrument | ||||||||||||||||
currency | eligible as | ||||||||||||||||
Share | Legal | Risk | Fair value | translation | Retained | additional | Total | ||||||||||
capital | reserve | reserve | reserve | reserve | earnings | Total | Tier 1 capital | equity | |||||||||
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 income: | - | - | - | - | - | 690,410 | 690,410 | 690,410 | |||||||||
Profit for the period | - | ||||||||||||||||
Other comprehensive income / (loss) | - | - | - | 32,472 | (1,014) | - | 31,458 | - | 31,458 | ||||||||
Total comprehensive income / (loss) | - | - | - | 32,472 | (1,014) | 690,410 | 721,868 | - | 721,868 | ||||||||
Transactions with shareholders: | |||||||||||||||||
Dividends for the year 2023 (Note 16) | - | - | - | - | - | (232,535) | (232,535) | - | (232,535) | ||||||||
Balance at 30 September 2024 (Reviewed) | 3,100,467 | 5,110,152 | 1,416,600 | (53,980) | (83,263) | 1,443,378 | 10,933,354 | 4,000,000 | 14,933,354 | ||||||||
Balance at 1 January 2023 (Audited) | 3,100,467 | 5,095,673 | 1,312,600 | (124,380) | (81,828) | 776,276 | 10,078,808 | 4,000,000 | 14,078,808 | ||||||||
Total comprehensive income: | |||||||||||||||||
Profit for the period | - | - | - | - | - | 626,853 | 626,853 | - | 626,853 | ||||||||
Other comprehensive loss | - | - | - | (98,618) | (400) | - | (99,018) | - | (99,018) | ||||||||
Total comprehensive (loss) / income | - | - | - | (98,618) | (400) | 626,853 | 527,835 | - | 527,835 | ||||||||
Transactions with shareholders: | |||||||||||||||||
Dividends for the year 2022 (Note 16) | - | - | - | - | - | (232,535) | (232,535) | - | (232,535) | ||||||||
Balance at 30 September 2023 (Reviewed) | 3,100,467 | 5,095,673 | 1,312,600 | (222,998) | (82,228) | 1,170,594 | 10,374,108 | 4,000,000 | 14,374,108 |
The attached notes 1 to 22 form part of this interim condensed consolidated financial information.
Independent auditors' review report is set out on page 1.
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Doha Bank Q.P.S.C.
(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)
INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
For the nine -month period ended
For the nine-month | ||||
period ended 30 September | ||||
Notes | 2024 | 2023 | ||
(Reviewed) | (Reviewed) | |||
Cash flows from operating activities | ||||
Profit before tax | 694,531 | 698,987 | ||
Adjustments for: | 768,931 | |||
Net impairment loss on loans and advances to customers | 583,293 | |||
Net impairment loss / (reversal) on investment securities | 6,868 | (4,415) | ||
Net impairment loss / (reversal) on other financial facilities | 6,283 | (21,372) | ||
Depreciation | 60,038 | 67,264 | ||
Amortisation of financing cost | 11,994 | 11,889 | ||
Dividend income | (57,116) | (39,078) | ||
Net gain from investment securities | (40,424) | (86,555) | ||
Gain on sale of property, furniture and equipment | (233) | (147) | ||
Profit before changes in operating assets and liabilities | 1,265,234 | 1,395,504 | ||
Change in due from banks and balances with central banks | (448,611) | |||
728,171 | ||||
Change in loans and advances to customers | (3,874,255) | 833,773 | ||
Change in other assets | (615,381) | (155,694) | ||
Change in due to banks | 4,917,852 | 4,554,194 | ||
Change in customers deposits | 291,199 | (4,819,232) | ||
Change in other liabilities | 208,162 | |||
444,884 | ||||
Social and sports fund contribution | (19,237) | (19,134) | ||
Income tax reversal / (paid) | 2,114 | (3,974) | ||
Net cash flows generated from operating activities | 3,140,581 | 1,544,988 | ||
Cash flows from investing activities | (8,569,523) | |||
Acquisition of investment securities | (13,000,938) | |||
Proceeds from sale of investment securities | 7,699,105 | 6,192,599 | ||
Acquisition of property, furniture and equipment | (7,498) | (8,528) | ||
Dividend received | 57,116 | 39,078 | ||
Proceeds from sale of property, furniture and equipment | 302 | 168 | ||
Net cash flows used in investing activities | (5,251,913) | (2,346,206) | ||
Cash flows from financing activities | ||||
Payment of lease liabilities | (22,555) | (27,260) | ||
Proceed / (repayment) from other borrowings | 1,528,903 | (1,761,772) | ||
Proceeds from debt securities | 1,192,812 | 5,382 | ||
Dividends paid | (232,535) | (232,535) | ||
Net cash flows generated from / (used in) financing activities | 2,466,625 | (2,016,185) | ||
Net increase / (decrease) in cash and cash equivalents | 355,293 | (2,817,403) | ||
Cash and cash equivalents at the beginning of the period | 4,636,564 | 7,101,210 | ||
Cash and cash equivalents at the end of the period | 19 | 4,991,857 | 4,283,807 | |
Operational cash flows from interest and dividend: | ||||
4,741,555 | 3,973,599 | |||
Interest received | ||||
Interest paid | 3,173,351 | 2,246,419 | ||
Dividends received | 57,116 | 39,078 | ||
Non cash item disclosure:
Total addition of right of use assets and corresponding addition to lease liabilities amounted to QR 2.2 million as at 30 September 2024 (30 September 2023: QR 13.2 million).
The attached notes 1 to 22 form part of this interim condensed consolidated financial information.
Independent auditors' review report is set out on page 1.
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Doha Bank Q.P.S.C.
Notes to the interim condensed consolidated financial information
(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)
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 asa 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) where it has 16 local branches, 1 corporate service center and 1 corporate branch. Internationally the Bank has four overseas branches, 1 each in the United Arab Emirates and Kuwait, and 2 branches in India, with representative offices in Bangladesh, China, Japan, Nepal, Singapore, South Africa, Turkey and United Kingdom.
The interim condensed consolidated financial information of the Group for the period ended 30 September 2024 were authorised for issuance in accordance with a resolution of the Board of Directors on 21 October 2024.
The principal subsidiaries of the Group are as follows:
Percentage of ownership | |||||
Country of | Company's | Company's | 30 September | 30 September | |
Company's name | incorporation | capital | Activities | 2024 | 2023 |
Sharq Insurance L.L.C. | Qatar | 100,000 | General Insurance | 100% | 100% |
Doha Finance Limited | Cayman Island | 182 | Debt Issuance | 100% | 100% |
DB Securities Limited | Cayman Island | 182 | Derivatives | 100% | 100% |
Transactions |
2. BASIS OF PREPARATION
- 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 2023. 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 statementsfor the year ended 31 December 2023 except for the adoption of new and amended standards as set out in note 3. The results for the nine-month period ended 30 September 2024 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2024.
The Group presents its interim condensed consolidated financial information broadly in the order of liquidity.
- Estimates and judgements
The preparation of the interim condensed consolidated financial information in conformity with IFRS Accounting Standards requires management to make judgements, estimatesand 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 thesame as those that were applied to the consolidated financial statements as at and for the year ended 31 December 2023. 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.
7
Doha Bank Q.P.S.C.
Notes to the interim condensed consolidated financial information
(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)
2. BASIS OF PREPARATION (CONTINUED)
- 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.
- Functional and presentation currency
The interim condensed consolidated financial information is presented in Qatari Riyals ("QR"), which is the Group's functional 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.
- 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 2023.
3. SIGNIFICANT 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 2023, except as noted below:
- New standards, amendments and interpretations effective from 1 January 202 4
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.
- Classification of Liabilities as Current or Non-current - Amendments to IAS 1 (effective from 1 January 2024).
- Non-currentliabilities with covenants - Amendments to IAS 1 (effective from 1 January 2024).
- Lease liability in sale and leaseback - Amendments to IFRS 16 (effective from 1 January 2024).
- Supplier finance arrangements - Amendments to IAS 7 and IFRS 7 (effective from 1 January 2024).
In December 2021, the Organisation for Economic Co-operation and Development (OECD) issued model rules for a new global minimum tax framework (Pillar Two), and various governments around the world have issued, or are in the process of issuing, legislation on this. On 2 February 2023, Law No. 11 of 2022 was published which affirmed the State of Qatar's obligations with respect to combating international tax avoidance. The Law further stated that Executive Regulations specifying the necessary provisions to meet the State's obligations provided that the minimum tax rate is not less than 15%, will be issued in due course.
The Group is in the process of assessing the full impact of this. The Group has applied the mandatory exception to recognising and disclosing information about deferred tax assets and liabilities arising from Pillar Two income taxes .
- New standards, amendments and interpretations issued but not effective from 1 January 202 4
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.
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