Doha Bank Q P S C : Interim condensed consolidated financial information Q1 2024

Doha Bank (Q.P.S.C.)

Interim condensed consolidated financial information

31 March 2024

Doha Bank Q.P.S.C.

Interim condensed consolidated financial information

CONTENTS	PAGE(S)
Independent auditor's review report	1
Interim condensed consolidated statement of financial position	2
Interim condensed consolidated income statement	3
Interim condensed consolidated statement of comprehensive income	4
Interim condensed consolidated statement of changes in equity	5
Interim condensed consolidated statement of cash flows	6
Notes to the interim condensed consolidated financial information	7-22

Review report on the interim condensed consolidated financial information to the board of directors of Doha Bank Q.P.S.C.

Introduction

We have reviewed the accompanying interim condensed consolidated statement of financial position of Doha Bank Q.P.S.C. (the "Parent") and its subsidiaries (together "the Group") as at 31 March 2024 and the related interim condensed consolidated income statement, the related interim condensed consolidated statements of comprehensive income, changes in equity and cash flows for the three-month period then ended and other explanatory notes. Management is responsible for the preparation and presentation of this interim condensed consolidated financial information in accordance with International Accounting Standard 34, 'Interim Financial Reporting' ('IAS 34') as issued by the International Accounting Standard Board (IASB). Our responsibility is to express a conclusion on this interim condensed consolidated financial information based on our review.

Scope of review

We conducted our review in accordance with International Standard on Review Engagements 2410, 'Review of interim financial information performed by the independent auditor of the entity'. A review of interim financial information consists of making inquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with International Standards on Auditing and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Conclusion

Based on our review, nothing has come to our attention that causes us to believe that the accompanying interim condensed consolidated financial information is not prepared, in all material respects, in accordance with IAS 34.

For and on behalf of PricewaterhouseCoopers - Qatar Branch

Qatar Financial Market Authority registration number 120155

Waleed Tahtamouni

Auditor's registration number 370 Doha, State of Qatar

21 April 2024

PricewaterhouseCoopers - Qatar Branch, P.O.Box: 6689, Doha, Qatar.

Ministry of Commerce and Industry License number 6 / Qatar Financial Markets Authority License number 120155

T: [phone], F:[phone], www.pwc.com/me

1

Doha Bank Q.P.S.C.

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION As at 31 'larch 2024

						31 March		31 December		31 March
					2024		2023	2023
				'-otes		(Reviewed)		Audited	(Reviewed)
	Assets						4,842,101		3,830,524
	Cash and balances with central banks	�	4,674,574
	Due from banks	7,265,151		5,496,929	9,124,513
	I
	Loans and advances to customers	8	58,154,620		58,009,676	56,649,614
	Investment securities	9	30,105,837		30,386,048	25,034,089
	Other assets		1,567,930		1,833,610	1,293,196
	Investment in an associate		10,204		10,224	9,956
	Pro2erti:, furniture and egui2ment		600!498		619,229	653,370
Total assets		102,378,814		101,197,817	96,595,262
Liabilities and equity
Liabilities								20,607,880
Due to banks	10	22,906,351		23,908,269
Customers deposits	11	52,186,544		51,572,773	48,566,950
Debt securities	12	3,646,592		2,588,373	2,532,692
Other borrowings	13	7,115,793		5,928,455	8,320,651
Insurance contract liabilities*		38,148		42,384	29,585
Other liabilities		1 995 092		2,713,542	2,655,277
Total liabilities			87,888!520				86,753,796	82,713,035
Equity						3,100,467	3,100,467
Share capital	1-l-	3,100,467
Legal reserve		5,110,152			5,110,152	5,095,673
Risk reserve		1,416,600		1,416,600	1,312,600
Fair value reserve		(38,668)	(86,452)	(298,651)
Foreign currency translation reserve		(82,544)	(82,249)	(80,237)
Retained earnings		984,287			985,503	752,375
Net equity attributable to shareholders of the Bank		10,490,294			10,444,021	9,882,227
Instruments eligible as additional Tier I ca2ital	I :i	4,000!000			4,000,000	4,000,000
Total eguity		14!490,294			14,444,021	13,882,227
Total liabilities and equity		102,378,814			101,197,817	96,595,262

* Refer note 22 for change in comparatives.

The interim condensed consolidated financial information was approved by the Board ofDirectors on 21 April 2024 and was signed on its behalf by:

Abdulrahman Bin

Group Chief Executive Officer

Fahad Bin Mohammad Bin Jabor Al Thani	Abdul Rahman Bin Mohammad Bin Jabor Al Thani
Chairman	Managing Director

The attached notes I to 22 form part of this interim condensed consolidated financial information.

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Doha Bank Q.P.S.C.

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

INTERIM CONDENSED CONSOLIDATED INCOME STATEMENT

For the three-month period ended

		For the three-month
		period ended 31 March
		2024	2023
	Note	(Reviewed)	(Reviewed)
Interest income		1,534,534	1,269,948
Interest expense		(1,045,730)	(782,523)
Net interest income		488,804	487,425
Fee and commission income		153,896	146,264
Fee and commission expense		(63,040)	(54,184)
Net fee and commission income		90,856	92,080
Insurance revenue *		31,871	18,406
Insurance service expense*		(17,982)	(6,353)
Net expense from reinsurance contracts held*		(8,318)	(7,137)
Net income from insurance activities		5,571	4,916
Net foreign exchange gain		33,478	27,115
Net income from investment securities		35,543	15,604
Other operating income		5,314	6,892
		74,335	49,611
Net operating income		659,566	634,032
Staff costs		(136,725)	(126,351)
Depreciation		(20,674)	(22,582)
Net impairment reversal on investment securities		322	4,595
Net impairment loss on loans and advances to customers		(178,862)	(203,815)
Net impairment (loss)/reversal on other financial facilities		(15,578)	13,792
Other expenses		(76,434)	(73,460)
Total expenses and impairment		(427,951)	(407,821)
Profit before tax		231,615	226,211
Income tax expense		(296)	(17,577)
Profit for the period		231,319	208,634
Earnings per share		0.07
Basic and diluted earnings per share (QR per share)	17	0.07

* Refer note 22 for change in comparatives.

The attached notes 1 to 22 form part of this interim condensed consolidated financial information. Independent auditors' review report is set out on page 1.

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Doha Bank Q.P.S.C.

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

For the three-month period ended

	For the three-month
	period ended 31 March
	2024	2023
Note	(Reviewed)	(Reviewed)
Profit for the period	231,319	208,634
Other comprehensive income
Items that are or may be subsequently reclassified to
income statement:	(295)
Foreign currency translation differences for foreign operations	1,591
Net movement in cash flow hedges - effective portion of	-
changes in fair value	101
Movement in fair value reserve (debt instruments):
Net change in fair value of debt instruments designated at	(377,281)
FVOCI	92,738
Net amount transferred to interim condensed consolidated	444,988
income statement	(248,881)
Items that will not be reclassified subsequently to income	67,412	(154,451)
statement
Net change in fair value of equity investments designated at	(19,923)
FVOCI	(18,229)
Total other comprehensive income/(loss)	47,489	(172,680)
Total comprehensive income	278,808	35,954

The attached notes 1 to 22 form part of this interim condensed consolidated financial information. Independent auditors' review report is set out on page 1.

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Doha Bank Q.P.S.C.

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the three-month period ended

		Total equity attributable to shareholders of the Bank			Instrument
						Foreign
	Share					currency				eligible as	Total
	Legal	Risk		Fair value	translation	Retained			additional
	capital	reserve	reserve		reserve	reserve	earnings	Total		Tier 1 capital	equity
Balance at 1 January 2024 (Audited)	3,100,467	5,110,152	1,416,600		(86,452)	(82,249)	985,503	10,444,021		4,000,000	14,444,021
Total comprehensive income:	-	-	-		-	-	231,319	231,319		-	231,319
Profit for the period
Other comprehensive income/(loss)	-	-	-		47,784	(295)	-	47,489		-	47,489
Total comprehensive income/(loss)	-	-	-		47,784	(295)	231,319	278,808		-	278,808
Transactions with shareholders:	-	-	-		-	-	(232,535)	(232,535)		-	(232,535)
Dividends for the year 2023 (Note 16)
Balance at 31 March 2024 (Reviewed)	3,100,467	5,110,152	1,416,600		(38,668)	(82,544)	984,287	10,490,294		4,000,000	14,490,294
Balance at 1 January 2023 (Audited)	3,100,467	5,095,673	1,312,600	(124,380)	(81,828)	776,276	10,078,808	4,000,000	14,078,808
Total comprehensive income:
Profit for the period	-	-	-	-	-	208,634	208,634	-	208,634
Other comprehensive (loss)/income	-	-	-	(174,271)	1,591	-	(172,680)	-	(172,680)
Total comprehensive (loss)/income	-	-	-	(174,271)	1,591	208,634	35,954	-	35,954
Transactions with shareholders:
Dividends for the year 2022 (Note 16)	-	-	-	-	-	(232,535)	(232,535)	-	(232,535)
Balance at 31 March 2023 (Reviewed)	3,100,467	5,095,673	1,312,600	(298,651)	(80,237)	752,375	9,882,227	4,000,000	13,882,227

The attached notes 1 to 22 form part of this interim condensed consolidated financial information.

Independent auditors' review report is set out on page 1.

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Doha Bank Q.P.S.C.

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

INTERIM CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

For the three-month period ended

		For the three-month
		period ended 31 March
	Notes	2024	2023
	(Reviewed)	(Reviewed)
Cash flows from operating activities		231,615
Profit before tax		226,211
Adjustments for:		178,862
Net impairment loss on loans and advances to customers		203,815
Net impairment reversal on investment securities		(322)	(4,595)
Net impairment loss/(reversal) on other financial facilities		15,578	(13,792)
Depreciation		20,674	22,582
Amortisation of financing cost		3,792	4,076
Dividend income		(21,384)	(22,851)
Net (income)/loss from investment securities		(14,159)	7,247
(Gain)/loss on sale of property, furniture and equipment		(36)	4
Profit before changes in operating assets and liabilities		414,620	422,697
Change in due from banks and balances with central banks		(538,135)	(252,983)
Change in loans and advances to customers		(577,822)	1,454,917
Change in other assets		265,680	262,825
Change in due to banks		(1,001,918)	1,368,827
Change in customers deposits		613,771	(1,562,785)
Change in other liabilities		(475,861)	(246,001)
Social and sports fund contribution		-	(19,134)
Income tax paid		(308)	(18,224)
Net cash flows (used in)/generated from operating activities		(1,299,973)	1,410,139
Cash flows from investing activities		(2,300,274)
Acquisition of investment securities		(1,900,810)
Proceeds from sale of investment securities		2,642,770	1,653,615
Acquisition of property, furniture and equipment		(2,793)	(3,128)
Dividend received		21,384	22,851
Proceeds from sale of property, furniture and equipment		71	4
Net cash flows generated from/(used in) investing activities		361,158	(227,468)
Cash flows from financing activities		(7,855)
Payment of lease liabilities		(8,875)
Proceeds/(repayment of) other borrowings		1,187,338	(570,402)
Proceeds from debt securities		1,054,427	12,123
Dividends paid		(232,535)	(232,535)
Net cash flows generated from/(used in) financing activities		2,001,375	(799,689)
Net increase in cash and cash equivalents		1,062,560	382,982
Cash and cash equivalents at the beginning of the period		4,636,564	7,101,233
Cash and cash equivalents at the end of the period	19	5,699,124	7,484,215
Operational cash flows from interest:		1,511,109
Interest received		1,243,656
Interest paid		1,096,805	758,463

Non cash item disclosure:

Total addition of right of use assets and corresponding addition to lease liabilities amounted to QR 0.14 million as at 31 March 2024 (31 March 2023: QR 7.3 million).

The attached notes 1 to 22 form part of this interim condensed consolidated financial information. Independent auditors' review report is set out on page 1.

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Doha Bank Q.P.S.C.

Notes to the interim condensed consolidated financial information

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

1. REPORTING ENTITY

Doha Bank Q.P.S.C. ("Doha Bank" or the "Bank") is an entity domiciled in the State of Qatar and was incorporated on 15 March 1979 as a Joint Stock Company under Emiri Decree No. 51 of 1978. The commercial registration of the Bank is 7115. The address of the Bank's registered office is Doha Bank Tower, Corniche Street, West Bay, P.O. Box 3818, Doha Qatar.

Doha Bank is engaged in conventional banking activities and operates through its head office in Qatar (Doha) where it has 16 local branches, 1 corporate service center and 1 corporate branch. Internationally the Bank has four overseas branches 1 each in the United Arab Emirates and Kuwait, and 2 branches in India, with representative offices in United Kingdom, Singapore, Turkey, China, Japan, South Korea, Germany, Australia, Bangladesh, South Africa, and Nepal. The interim condensed consolidated financial information for the three-month period ended 31 March 2024 comprises of the Bank and its subsidiaries (together referred to as "the Group").

The principal subsidiaries of the Group are as follows:

	Country of	Company's	Company's	Percentage of ownership
	31 March	31 March
Company's name	incorporation	capital	Activities	2024	2023
			General	100%
Sharq Insurance L.L.C.	Qatar	100,000	Insurance	100%
Doha Finance Limited	Cayman Island	182	Debt Issuance	100%	100%
			Derivatives	100%
DB Securities Limited	Cayman Island	182	Transactions	100%

2. BASIS OF PREPARATION

1. Statement of compliance

The interim condensed consolidated financial information has been prepared in accordance with IAS 34, Interim Financial Reporting.

The interim condensed consolidated financial information does not contain all information and disclosures required in the consolidated financial statements and should be read in conjunction with the Group's consolidated financial statements as at 31 December 2023. The accounting policies adopted in the preparation of the interim condensed consolidated financial information is consistent with those followed in the preparation of the Group's consolidated financial statements for the year ended 31 December 2023 except for the adoption of new and amended standards as set out in note 3. The results for the three-month period ended 31 March 2024 are not necessarily indicative of the results that may be expected for the financial year ending 31 December 2024.

The Group presents its interim condensed consolidated financial information broadly in the order of liquidity.

1. Estimates and judgements

The preparation of the interim condensed consolidated financial information in conformity with IFRS Accounting Standards requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses, and the accompanying disclosures, and the disclosure of contingent liabilities. Actual results may differ from these estimates.

In preparing the interim condensed consolidated financial information, significant judgements made by management in applying the Group's accounting policies, key sources of estimation uncertainty, estimated and underlying estimates were the same as those that were applied to the consolidated financial statements as at and for the year ended 31 December 2023. Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.

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Doha Bank Q.P.S.C.

Notes to the interim condensed consolidated financial information

(All amounts are expressed in '000 Qatari Riyals unless otherwise stated)

2. BASIS OF PREPARATION (CONTINUED)

1. Basis of measurement

The interim condensed consolidated financial information has been prepared on the historical cost basis except for the following financial assets that have been measured at fair value:

• Investment securities designated at fair value through profit or loss (FVTPL);
• Derivative financial instruments measured at FVTPL;
• Other financial assets designated at FVTPL;
• Investment securities measured at fair value through other comprehensive income ('FVOCI'); and
• Recognised financial assets and financial liabilities designated as hedged items in qualifying fair value hedge relashionships to the extent of risks being hedged.

1. Functional and presentation currency

The interim condensed consolidated financial information is presented in Qatari Riyals ("QR"), which is the Group's functional and presentation currency, unless otherwise indicated. Financial information presented in QR has been rounded to the nearest thousand.

1. Financial risk management

The Group's financial risk management objectives and policies are consistent with those disclosed in the consolidated financial statements as at and for the year ended 31 December 2023.

3. SIGNIFICANT ACCOUNTING POLICIES

The accounting policies and methods of computation adopted in the preparation of the interim condensed consolidated financial information is the same as those followed in the preparation of the Group's consolidated financial statements as at and for the year ended 31 December 2023, except as noted below:

1. New standards, amendments and interpretations effective from 1 January 2024

During the period, the below IFRS Accounting Standards and amendments to IFRS Accounting Standards have been applied by the Group in preparation of this interim condensed consolidated financial information. The adoption of the below IFRS Accounting Standards and amendments to IFRS Accounting Standards did not have any impact on the amounts recognized in prior and current periods and are not expected to significantly affect the future reporting periods.

1. • Classification of Liabilities as Current or Non-current - Amendments to IAS 1
   • Non-currentliabilities with covenants - Amendments to IAS 1
   • Lease liability in sale and leaseback - Amendments to IFRS 16
   • Supplier finance arrangements - Amendments to IAS 7 and IFRS 7
2. New standards, amendments and interpretations issued but not effective from 1 January 2024

A number of standards and amendments to standards are issued but not yet effective and the Group has not adopted these in the preparation of the interim condensed consolidated financial information. The standards may have an impact on the Group's interim condensed consolidated financial information, however, the Group is currently evaluating the impact of these new standards. The Group will adopt these new standards on the respective effective

dates.

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