Commercial Bank Group reported a net profit of QR1.083 billion before the impact of the global minimum tax for the first half of 2026, reflecting steady growth in its core banking operations despite a challenging regional geopolitical environment. The bank’s net operating income increased by 9.4 percent year-on-year to QR2.459 billion, driven primarily by higher net interest income and fee income.

The growth in income was partly offset by increased loan-loss provisions, which the bank attributed to adopting a more balanced approach to provisioning throughout the year in accordance with IFRS 9. Operating expenses also rose owing to ongoing investments in digital technologies, artificial intelligence, and talent acquisition. Additionally, the bank’s Turkish subsidiary, Alternatif Bank, recorded a QR28.2 million loss after hyperinflation accounting adjustments impacted financial results under IAS 29.

On a normalized basis, excluding movements related to the long-term incentive scheme (LTIS), adjusted net profit before tax stood at QR1.108 billion. After accounting for a QR69.3 million charge arising from the OECD’s BEPS Pillar Two global minimum tax rules, the group reported an adjusted net profit after tax of QR1.039 billion. This tax charge reflected a decrease compared with the QR112.9 million recorded in the same period last year.

The bank’s balance sheet strengthened during the period, supported by growth in customer loans, advances, and deposits. The retail and wealth banking divisions saw increased momentum through higher fee income and enhanced digital wealth management services, while wholesale banking remained focused on selective lending to higher-return customer segments and expanded cross-selling.

Commercial Bank has maintained its commitment to digital transformation efforts, including investments in automation and artificial intelligence aimed at improving customer engagement and operational efficiency. Its associate businesses, including Alternatif Bank, delivered solid performances despite the challenging inflationary environment in Turkey. While Alternatif Bank returned to operating profitability, reported results were still significantly influenced by hyperinflation accounting.

The first half of 2026 was marked by heightened geopolitical uncertainty affecting key maritime and energy supply routes in the region. Despite these challenges, Commercial Bank sustained uninterrupted banking services through robust governance, business continuity planning, and ongoing digital infrastructure investments. The bank emphasized the resilience of Qatar’s banking sector, supported by strong capital and liquidity positions and regulatory measures introduced by Qatar Central Bank to enhance financial stability.

Sheikh Abdulla bin Ali bin Jabor Al Thani, Commercial Bank Chairman, highlighted the resilience of both Qatar’s economy and the bank’s foundational strengths amid a complex and volatile regional backdrop. He noted that the group’s priorities focus on sound governance, balance-sheet resilience, and the careful execution of its strategy aligned with Qatar National Vision 2030.

Vice Chairman and Managing Director Omar Hussain Alfardan emphasized the bank’s ongoing efforts to strengthen retail, wealth management, and wholesale banking while enhancing transaction banking capabilities. He added that recent senior management appointments aim to bolster leadership and support the development of Qatari talent.

Group Chief Executive Officer Stephen Moss pointed to resilient operating momentum, with net operating income and operating profit increasing by 9.4 percent and 7.9 percent, respectively, during the first half. He reiterated a clear focus on disciplined execution of the bank’s strategy for 2026–2030. Moss also noted that higher loan-loss provisions reflect prudent risk management aligned with IFRS 9 standards.

The implementation of the BEPS Pillar Two global anti-base erosion rules, effective since January 2025, continues to influence the group’s tax expenses, with the half-year charge totaling QR69.3 million in 2026.