Commercial Bank of Qatar reported first-quarter 2025 net profit after tax of QAR 651.4 million, a decline of 18.7% compared with the same period a year earlier, as the Qatari lender absorbed the first charge under the OECD's BEPS Pillar Two global minimum tax framework alongside higher losses at its Turkish subsidiary and changes to its long-term incentive scheme. The bank disclosed the results on 16 April 2025.
Stripping out the Pillar Two charge, profit before that tax stood at QAR 704.3 million. The QAR 52.9 million Pillar Two charge had not featured in any prior comparative period.
ALTERNATIF BANK AND INCENTIVE SCHEME
Beyond the Pillar Two charge, the results also carried an additional QAR 31.9 million drag from higher losses at Alternatif Bank, the bank's wholly owned Turkish subsidiary.
Besides the Pillar Two charge, the bank said the decline in profit before that tax reflected the QAR 31.9 million increase in Alternatif losses and QAR 84.8 million of changes related to its long-term incentive scheme; normalised for the LTIS changes, profit before tax would have fallen by only 1.7%. Chief executive Joseph Abraham said the bank had delivered a resilient performance in the first quarter, citing improved fee income and lower provisions, while net interest income was affected by lower interest rates.
BALANCE SHEET AND CAPITAL
Total assets grew 1.7% year-on-year to QAR 169.1 billion. Loans and advances increased 5.8% to reach QAR 94.9 billion.
The bank reported a Common Equity Tier 1 ratio of 12.3%.