This article first appeared on GuruFocus .
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Profit Before Tax:QAR810 million in H1 2026, down from QAR845 million in H1 2025.
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Profit After Tax:QAR687 million, impacted by global minimum taxes.
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Earnings Per Share:QAR0.074, compared to QAR0.088 in H1 2025.
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Book Value Per Share:QAR2.60, slightly up from QAR2.59 in H1 2025.
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Return on Average Equity:5.65%, down from 6.82% in H1 2025.
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Cost-to-Income Ratio:30.09%, increased from 27.6% due to strategic investments.
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Total Assets:QAR184 billion, a 1.6% increase from December 31, 2025.
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Customer Deposits:QAR120 billion, up from QAR111 billion in 2025.
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Financing Assets:QAR114 billion, a 3.8% decline from QAR118 billion in December 2025.
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Investment Securities:QAR52 billion, a 13.7% increase from year-end 2025.
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Coverage Ratio of Stage 3 Financing Assets:74.9%, up from 64.4% in Q2 2025.
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Non-Performing Financing Assets:5.16% of total financing assets, down from 5.38% in June 2025.
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Total ECL Provision:QAR328 million in H1 2026, compared to QAR415 million in H1 2025.
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Capital Adequacy Ratio:25.6%, with core capital CET1 at 23.4% in H1 2026.
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Release Date: July 23, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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AlRayan Bank ( DSMD:MARK ) reported a profit before tax of QAR810 million for the first half of 2026, demonstrating resilience despite global tax impacts.
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The bank's total assets increased by 1.6% to QAR184 billion as of H1 2026, indicating growth in its asset base.
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Customer deposits rose significantly to QAR120 billion from QAR111 billion in 2025, reflecting strong customer trust and engagement.
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Investment securities increased by 13.7% to QAR52 billion, showcasing a focus on value-generating assets.
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The capital adequacy ratio stands robust at 25.6%, well above the minimum regulatory requirement, ensuring financial stability and strength.
Negative Points
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Profit after tax decreased to QAR687 million due to the impact of global minimum taxes.
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Earnings per share declined to QAR0.074 from QAR0.088 in the first half of 2025, indicating reduced shareholder returns.
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The return on average equity fell to QAR5.65 from QAR6.82 in H1 2025, affected by global tax impacts.
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The cost-to-income ratio increased to 30.09% from 27.6%, driven by ongoing investments in strategy and digitalization.
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Financing assets declined by 3.8% to QAR114 billion, reflecting a strategic exit from low-yielding financing relationships.
Q & A Highlights
Q: Could you provide your expectations for asset growth in the second half of the year, and which sectors might contribute to this growth? Also, what is your guidance on margins assuming stable interest rates, and how would a 25 basis point increase affect your margins? A: We anticipate low-single digit asset growth by year-end, despite geopolitical delays. Our pipeline remains strong. If interest rates remain unchanged, profitability will mirror Q2. A 25 basis point increase would positively impact profitability, adding QAR20 million to QAR25 million, as 90% of our loan book is variable while 60-70% of deposits are fixed.
Q: Are you maintaining your cost of risk guidance for the year, given the lower first-half figures? A: Yes, we are sticking to the 78-80 basis points guidance for the year. The ECL phasing will be higher in Q3 and Q4, aligning with expected profitability increases.
Q: Can you clarify the level of non-funded income for the first half and whether it includes one-offs? A: Our non-funded income guidance includes QAR200 million to QAR250 million in one-offs for 2026, with a similar expectation for 2027. In the first half, about half of this amount is included. We aim to reduce reliance on one-offs, focusing on core business growth.
Q: Will the quarterly profitability run rate remain consistent throughout the year, and how does this compare to previous years? A: Yes, we expect Q3 and Q4 profitability to mirror Q2, differing from 2024 and 2025 when we had significant Q4 provisioning. The ECL cost of risk is decreasing as legacy asset provisioning completes.
Q: What is your target for the provision coverage ratio by the end of 2026, and how does this relate to loan impairments? A: We aim for an 80% provision coverage ratio for Stage 3 by the end of 2026, completing our legacy asset coverage plan. Loan impairments are expected to remain stable unless geopolitical conditions worsen.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
