Doha [Qatar], July 27: The Commercial Bank Group has reported a net profit before the impact of pillar two tax of QR1.083 billion for the first six months of 2026, underpinned by resilient operating performance and steady growth in its core banking business despite a challenging regional geopolitical environment.
The Group's net operating income rose 9.4 percent year-on-year to QR2.459 billion, driven by higher net interest income and fee income. The growth was partially offset by increased loan-loss provisions, reflecting a more balanced provisioning approach across the year in line with IFRS 9, higher operating expenses due to continued investments in digital capabilities, artificial intelligence and talent, and a QR28.2 million reported loss from Turkish subsidiary Alternatif Bank after the impact of hyperinflation accounting.
On a normalised basis, excluding long-term incentive scheme (LTIS) related movements, adjusted net profit before pillar two tax stood at QR1.108 billion. Following a QR69.3 million charge under the OECD's BEPS Pillar Two global minimum tax rules, adjusted net profit after tax reached QR1.039 billion.
The Group's balance sheet also strengthened during the period, supported by growth in customer loans and advances as well as customer deposits.
Commercial Bank said it remains focused on executing the next phase of its 2026-2030 strategy announced earlier this year. During the first half, its retail and wealth banking business gained further momentum through higher fee income and enhanced digital wealth management capabilities, while wholesale banking maintained selective lending focused on higher-return customer segments and expanded cross-selling opportunities.
The bank also continued investing in digital transformation, artificial intelligence and automation to enhance customer engagement, improve service delivery and boost operational productivity.
Its associate businesses also delivered solid performances. While Alternatif Bank returned to operating profitability, its reported financial results continued to be affected by hyperinflation accounting requirements under IAS 29 due to Turkey's inflationary environment.
Commercial Bank noted that the first half of 2026 was marked by heightened geopolitical uncertainty across the region, affecting key maritime and energy supply routes. Despite these challenges, the Group maintained uninterrupted banking services through robust governance, business continuity planning and ongoing investments in digital infrastructure. It also highlighted the resilience of Qatar's banking sector, supported by strong capital and liquidity, as well as precautionary measures introduced by Qatar Central Bank to preserve financial stability.
Commercial Bank Chairman Sheikh Abdulla bin Ali bin Jabor Al Thani said the first half of the year demonstrated both the resilience of Qatar's economy and the strength of Commercial Bank's foundations.
"Against a complex and volatile regional backdrop, the Group maintained disciplined stewardship and continued to serve customers without material disruption. Our priorities remain centred on sound governance, balance-sheet resilience and the careful execution of our strategy to create sustainable long-term value in alignment with Qatar National Vision 2030," he said.
Commercial Bank Vice Chairman and Managing Director Omar Hussain Alfardan said the bank remained focused on executing its strategic priorities, strengthening its retail, wealth management and wholesale banking businesses while enhancing transaction banking capabilities. He added that recent senior management appointments would further strengthen leadership and support the development of Qatari talent.
Commercial Bank Group Chief Executive Officer Stephen Moss said the Group delivered resilient operating momentum, with net operating income increasing by 9.4 percent and operating profit rising 7.9 percent during the first half.
"The domestic franchise remained solid, underlying lending grew, and Alternatif Bank returned to operating profitability. Reported profit was affected by higher provisioning as we apply a more balanced approach across the year, consistent with prudent risk management and IFRS 9. Our focus for the remainder of the year remains clear: disciplined execution of the next phase of our strategy for the period 2026 to 2030," he said.
The bank noted that the implementation of the BEPS pillar two global anti-base erosion (GloBE) rules, effective from January 1, 2025, resulted in an incremental tax charge of QR69.3 million during the first half of 2026, compared with QR112.9 million in the corresponding period of last year.
Source: Qatar Tribune