The Commercial Bank (P.S.Q.C.) Reports Nine Months Ended 30 September 2026 Net Profit Before Pillar Two Tax of QAR 1,644.1 million
20 October 2026
Key Highlights
- Net Profit before the impact of Pillar Two Tax of QAR 1,644.1 million, supported by resilient operating performance.
- Net Operating Income increased by 2.9% year-on-year to QAR 3,568.3 million.
- Total Assets of QAR 183.6 billion, down by 4.4% from 30 September 2025.
- Loans and Advances to Customers excluding Acceptances of QAR 100.7 billion, up by 6.3% from 30 September 2025.
- Customer Deposits of QAR 83.1 billion, down by 3.0% from 30 September 2025.
- Capital Adequacy Ratio at 18.9%, increased from 17.9% at 30 September 2025.
- Total Equity of QAR 26.6 billion, down by 0.9% from 30 September 2025.
- The Group continues to maintain a strong capital and liquidity position.
Doha, Qatar, 20 October 2026:
The Commercial Bank (P.S.Q.C.) (the “Bank”) and its subsidiaries (the “Group”) announced today its financial results for the nine months ended 30 September 2026.
The Group reported Net Profit before Pillar Two Tax of QAR 1,644.1 million for nine months 2026. The year-on-year movement in profit was supported by resilient operating performance in the nine months of 2026. Net Operating Income increased by 2.9% year-on-year to QAR 3,568.3 million, driven by increases in net interest income. This was offset by higher net provisions in the nine months of 2026 due to a more balanced approach of loan provisioning across each quarter and increased operating expenses as the Group continued to invest in digital capabilities including AI and people. The results also include a reported loss of QAR 46.5 million from Alternatif Bank after the impact of hyperinflation accounting.
The Group’s balance sheet stood at QAR 183.6 billion as at 30 September 2026, declining by 4.4% year-on-year. Despite the overall decline, the Group continued to record growth in key asset categories, with growth in loans and advances to customers and investment securities growing.
The Group remains focused on the disciplined execution of its strategy, announced in January 2026 for the period from 2026 to end 2030. The Retail and Wealth business continued to perform strongly, supported by higher fee income and continued to build upon its advisory-led wealth proposition through enhanced digital capabilities, supporting deeper penetration of the mass affluent and private banking customer segments. In Wholesale Banking, lending growth remained selective and focused on higher-return customer segments, while continuing to deepen cross-sell opportunities. The Group also continued to enhance its digital offerings and deploy AI and automation to improve customer engagement, service delivery and productivity.
The associates performed well as the Group continues to work closely with them in the execution of their strategies. Performance of our Turkish subsidiary Alternatif Bank improved year on year at operating profit level however, the results continue to be impacted by hyperinflation accounting, as the Group continues to apply International Accounting Standard 29 (IAS 29) given that Turkey remains a hyperinflationary economy.
These results reflect a more balanced approach of loan provisioning consistently throughout the year, as opposed to the historic practice of taking a significantly larger charge in the fourth quarter. This approach is in line with IFRS 9 and prudent risk management.
The Group also accrued a charge of QAR 104.7 million for BEPS (Base Erosion and Profit Shifting) Pillar Two Tax. This resulted in Net Profit after Pillar Two Tax of QAR 1,539.4 million for the period.
Current Geopolitical Environment
The regional geopolitical environment continued to be volatile and uncertain during nine months to 30 September 2026, affecting key maritime and energy supply routes. Against this backdrop, the Group continued to operate resiliently, supported by its established governance framework; strong operating platform; continued investment in digital capabilities; and business continuity arrangements. These capabilities combined with close coordination with regulators enabled the Group to maintain seamless and secure access to banking services for our customers throughout this period.
The Qatari banking system remained resilient, supported by strong capitalisation and liquidity. Precautionary measures introduced by Qatar Central Bank, including enhanced liquidity facilities and temporary payment deferrals for affected borrowers, supported orderly market functioning and financial stability.
Against the current operating backdrop, the Group remains focused on supporting its customers, maintaining strong liquidity and capital, and continuing the disciplined execution of its strategy announced earlier this year.
Sheikh Abdulla bin Ali bin Jabor Al Thani, Chairman, said,
“In the nine months of 2026, Commercial Bank continued to navigate a challenging operating environment with discipline and resilience. The Group continues to benefit from sound governance, a strong balance sheet and prudent management of risk and capital. As we progress with the execution of our 2026 - 2030 strategy, our focus remains on strengthening the Bank for sustainable, profitable growth and creating long-term value for our shareholders, customers and the wider economy, in alignment with Qatar National Vision 2030.”
Mr. Omar Hussain Alfardan, Vice Chairman and Managing Director, said,
“We continued to advance the execution of our strategy, with a focus on deepening client relationships and strengthening our core businesses. In Retail and Wealth Banking, we enhanced our premium offering through the refreshed Sadara proposition and advanced our digital wealth capabilities, supported by external recognition for our wealth management franchise and digital innovation in cards and payments. In Wholesale Banking, our priorities remained focused on higher-return client segments and strengthening transaction banking relationships. We were also honoured by the Ministry of Labour with the Excellence Award for Leadership Skills Development, reflecting our commitment to developing Qatari talent and building the leadership capabilities required to deliver the next phase of our strategy.”
Mr. Stephen Moss, Group Chief Executive Officer, commented,
“The Group delivered a resilient performance in the nine months to 30 September, with Net Operating Income increasing by 2.9%. Operating Profit remained broadly stable, while reported profit reflected higher provisioning, increased operating expenses and lower non-interest income. The domestic franchise remains strong, supported by underlying lending growth, while Alternatif Bank returned to operating profitability.
Our priorities remain clear: disciplined growth, prudent risk and cost management, and progressing towards a more balanced earnings mix. We will continue to strengthen core customer relationships and invest in technology and customer propositions as we execute the 2026–2030 strategy.”
Financial Highlights
Key indicators of the financial results for the nine months ended 30 September 2026 are as follows:
|
QAR million |
Sep 2026 |
Sep 2025 |
Change % |
|
|
|
|
|
|
Total Assets |
183,563.3 |
191,975.9 |
(4.4%) |
|
Loans and Advances to Customers (Excluding Acceptances) |
100,687.2 |
94,763.4 |
6.3% |
|
Loans and Advances to Customers |
105,144.2 |
104,034.9 |
1.1% |
|
Customer Deposits |
83,106.9 |
85,653.7 |
(3.0%) |
|
Total Equity |
26,599.7 |
26,833.1 |
(0.9%) |
|
|
|
|
|
|
Net Operating Income |
3,568.3 |
3,468.5 |
2.9% |
|
Operating Expenses |
(1,153.1) |
(1,046.9) |
(10.1%) |
|
Operating Profit |
2,415.1 |
2,421.6 |
(0.3%) |
|
Net Provisions |
(979.8) |
(603.1) |
(62.5%) |
|
Share of Results of Associates |
323.2 |
297.0 |
8.8% |
|
Net Monetary Losses Due to Hyperinflation |
(72.9) |
(107.0) |
31.9% |
|
Income Tax Expense |
(41.6) |
(53.0) |
21.5% |
|
Net Profit Before BEPS Pillar Two Taxes |
1,644.1 |
1,955.4 |
(15.9%) |
|
BEPS Pillar Two Taxes |
(104.7) |
(169.9) |
38.4% |
|
Net Profit after Tax |
1,539.4 |
1,785.5 |
(13.8%) |
|
Key Performance Indicators |
Sep 2026 |
Sep 2025 |
|
|
|
|
|
Cost to Income Ratio |
32.3% |
30.2% |
|
Cost of Risk – COR (bps) – gross |
142 |
99 |
|
Cost of Risk – COR (bps) – net |
108 |
68 |
|
Non-Performing Loan (NPL) Ratio |
5.7% |
5.8% |
|
Loan Coverage Ratio – Stage 3 |
64.0% |
56.9% |
|
Common Equity Tier 1 (CET 1) Ratio |
12.8% |
13.0% |
|
Capital Adequacy Ratio (CAR) |
18.9% |
17.9% |
Balance sheet
Total assets as at 30 September 2026 reached QAR 183.6 billion, a decrease of 4.4% from 30 September 2025. This is mainly driven by a decrease in due from banks, which was partially offset by higher loans and advances to customers and higher investment securities
Investment securities increased by 5.1% to reach QAR 41.3 billion, with the Group investing in high-quality securities.
Net loans and advances to customers excluding acceptances of QAR 100.7 billion reflects a growth of 6.3% from 30 September 2025.
Customer deposits decreased by 3.0% to QAR 83.1 billion. Low-cost deposits increased by 3.6% to QAR 31.4 billion and represented 37.8% of the total customer deposit mix.
Income statement
The Group reported consolidated Net Profit after Tax of QAR 1,539.4 million for the nine months ended 30 September 2026, including a BEPS Pillar Two Tax charge of QAR 104.7 million and a reported post hyperinflationary accounting loss of QAR 72.9 million for Alternatif Bank.
Net Interest Income increased by 10.2% to QAR 2,800.1 million and net fee and commission income decreased by 5.8% to QAR 692.5 million. Excluding one-offs year on year net fees and commission income reflected a growth of 11.4%.
The Group’s reported cost-to-income ratio increased to 32.3% mainly due to continued investment in digital capabilities including AI and people including higher cost from Alternatif Bank.
Total gross provisions increased by 49.3% to QAR 1,248.2 million. This includes specific loan provisions and ECLs of QAR 1,018.5 million. The higher loan provisioning in the three quarters reflects the Group’s practice for 2026 onwards of provisioning consistently throughout the year, rather than taking a larger charge in the fourth quarter. Net provisions were at QAR 979.8 million supported by recoveries which increased year on year by 15.2% to QAR 268.5 million.
The share of the results of associates increased by 8.8% to QAR 323.2 million.
Capital ratios
The Group’s Common Equity Tier 1 (CET 1) Ratio as at 30 September 2026 is 12.8%. The Total Capital Adequacy Ratio (CAR) as at 30 September 2026 increased to 18.9%. These ratios are higher than the regulatory minimum requirements of the Qatar Central Bank and Basel III requirements.
BEPS Pillar Two Tax
The Group is subject to the global minimum top-up tax under Pillar Two tax legislation. The top-up tax relates to the Group’s operations in the State of Qatar (‘Qatar’).
The Group has accrued for Base Erosion and Profit Shifting (BEPS) Pillar Two Tax with effect from 1 January 2025 based on the applicable rules under BEPS Pillar Two Anti Global Base Erosion ("GloBE") Rules. The Rules have multiple mechanisms that aim to ensure that qualified multinational enterprises maintain a minimum effective tax rate of 15% calculated based on the excess taxable profits in every jurisdiction in which the Group operates. The incremental impact of these new taxes amounted to QAR 104.7 million for the nine months ended 30 September 2026 (nine months ended 30 September 2025: QAR 169.9 million).
Winding up of Long-Term Incentive Scheme (LTIS) and Recognition of Treasury Shares:
During the quarter, the Group completed the winding up of our long-term incentive scheme (LTIS) for employees and the related arrangements. The shares purchased are now held directly by the Bank as treasury shares.
Credit ratings highlight the Group’s robust resilience
All three major rating agencies had affirmed the ratings at:
- S&P: A- / Stable / A-2
- Moody’s: A3 / Stable / P-2
- Fitch: A / Negative / F1
Diversified funding sources
The Group continues to work to diversify its funding base and maintain a strong liquidity profile. It remains focused on accessing competitive and sustainable funding solutions aligned with its long-term strategic objectives.
Empowering innovation, talent and excellence
Commercial Bank continues to strengthen its position as a leader in innovation, talent development and excellence. Awards received during Q3 included:
- Best Artificial Intelligence (AI) /Machine Learning (ML) Initiative – Credit Limit Optimization by The Digital Banker
- Best New Product Launch of the Year – ON US Campaign by The Digital Banker
- The Best Digital Wealth Platform- by the Digital Banker
- Excellence Award for Leadership Skills Development by Himmah Qatar
About The Commercial Bank
The Commercial Bank was incorporated in 1974 as the first private bank in the country. It stands as one of Qatar's leading financial institutions, with a profitable track record since its inception, and is the second-largest conventional bank in Qatar. Today, the Group continues to play a pivotal role in driving innovation and raising banking service standards across the region through investment in new technology, a strong customer focus, and prudent management.
For further information, visit: Investor Relations | Commercial Bank of Qatar (cbq.com.qa)
For investor-related queries, please contact CB Investor Relations team on ir@cbq.com.qa