The Commercial Bank, Qatar’s second-largest conventional lender, said on Tuesday its net profit before Pillar Two tax fell 15.9% from a year earlier to QAR1.64 billion in the first nine months of 2026, as higher provisions and operating costs outweighed gains in lending income, according to a statement from the bank.
Net profit after Pillar Two tax was QAR1.54 billion for the period. The bank booked a Pillar Two tax charge of QAR104.7 million, compared with QAR169.9 million a year earlier, under the global minimum tax rules that apply to its operations in Qatar.
Net operating income rose 2.9% to QAR3.57 billion. Net interest income rose 10.2% to QAR2.80 billion, while net fee and commission income fell 5.8% to QAR692.5 million. Excluding one-off items, fee income grew 11.4%, the bank said.
Total gross provisions rose 49.3% to QAR1.25 billion, and net provisions were QAR979.8 million. The bank said it now spreads loan provisioning evenly across the year rather than taking a larger charge in the fourth quarter.
The cost-to-income ratio rose to 32.3%, which the bank attributed to investment in digital capabilities, artificial intelligence and staff, as well as higher costs at its Turkish subsidiary, Alternatif Bank.
Alternatif Bank posted a reported loss of QAR46.5 million after hyperinflation accounting, which Commercial Bank applies because Turkey remains a hyperinflationary economy. The unit returned to operating profitability, Group Chief Executive Officer Stephen Moss said.
Total assets fell 4.4% from a year earlier to QAR183.6 billion at the end of September, mainly because of lower balances due from banks. Net loans and advances to customers rose 6.3% to QAR100.7 billion, and customer deposits fell 3.0% to QAR83.1 billion.
The common equity Tier 1 ratio was 12.8% and the total capital adequacy ratio rose to 18.9%, from 17.9% a year earlier. The share of results from associates rose 8.8% to QAR323.2 million.
The bank said regional geopolitical conditions remained volatile during the period, affecting key maritime and energy supply routes, and that Qatar Central Bank measures, including enhanced liquidity facilities and temporary payment deferrals, supported orderly market functioning.
“Operating profit remained broadly stable, while reported profit reflected higher provisioning, increased operating expenses and lower non-interest income,” Moss said.
