Commercial Bank Qatar reported net profit after tax of QAR1.539 billion for the nine months ended 30 September 2026, down 13.8% from a year earlier. Net operating income rose 2.9% to QAR3.568 billion, but net provisions increased 62.5% to QAR979.8 million. Operating expenses also rose 10.1% to QAR1.153 billion. The result included a QAR104.7 million charge under the global Pillar Two tax rules.
Argaam's analysis showed loan-impairment losses increased 67.1% to QAR846.7 million from QAR506.6 million, identifying credit charges as the main driver of the profit decline. The bank said it had spread provisioning more evenly across the year instead of taking a larger charge in the fourth quarter. Its operating profit was broadly stable, slipping 0.3% to QAR2.415 billion. Profit before Pillar Two tax fell 15.9% to QAR1.644 billion.
PROVISIONS OFFSET STRONGER INTEREST INCOME
Net interest income increased 10.2% to QAR2.800 billion, supporting the rise in operating income. Net fee and commission income fell 5.8% to QAR692.5 million, although the bank said it rose 11.4% after excluding one-off items. The cost-to-income ratio increased to 32.3% from 30.2% as the group invested in technology and staff.
Gross provisions rose 49.3% to QAR1.248 billion, while recoveries increased 15.2% to QAR268.5 million. The net cost of risk climbed to 108 basis points from 68 basis points. The non-performing loan ratio nevertheless eased to 5.7% from 5.8%, while Stage 3 loan coverage increased to 64.0% from 56.9%.
LOAN GROWTH OUTPACED DEPOSITS
Loans and advances excluding acceptances grew 6.3% to QAR100.7 billion, while customer deposits declined 3.0% to QAR83.1 billion. Low-cost deposits rose 3.6% to QAR31.4 billion and represented 37.8% of customer deposits. Total assets fell 4.4% to QAR183.6 billion as balances due from banks declined.
The total capital adequacy ratio increased to 18.9% from 17.9%, while the common-equity tier-one ratio edged down to 12.8% from 13.0%. These buffers remain above regulatory minimums, according to the bank. Qatar Stock Exchange lists the group's investor call for 26 October, when management is due to discuss the quarterly operating and financial performance.