Good afternoon, ladies and gentlemen. I'm Mohamed Farhan, Head of Investor Relations, and welcome you all to the Commercial Bank 's third quarter 2025 results call. On this call, I have on my left Noman Ali, who is the Chief Financial Officer of the Commercial Bank of Qatar. During the duration of this call, we will put you on mute, and once the presentation is complete, I'll come back to you all for questions and answers. Now, I request everybody to please put yourself on mute. I hand over to Noman Ali, who will provide an update on the financial performance.
Hello everyone, and thank you for joining in. Getting into the results for the nine months ended 30th September 2025, I'll focus mainly on slide number seven, which shows the consolidated financial highlights of the group, both on a reported basis and also after excluding the long-term incentive scheme impacts. In summary, the group reported a net profit before Pillar Two Tax of QAR 1,955 million for the nine months ended 30th September 2025, as compared to QAR 2,341 million for the nine months ended 30th September 2024. Our results were impacted by a decrease in net interest income and an increase in loan impairment charges, offset by higher fee income. Further, due to the potential implementation of the global minimum tax of 15%, a tax charge of QAR 169 million was recorded, and our reported net profit after tax was QAR 1,785 million.
I would like to highlight that the group may benefit from certain available reliefs on the finalization of the draft executive regulations in the fourth quarter of 2025, and this may result in a reversal of the Pillar Two tax charge. Talking about our businesses, we have a strong retail and wealth business, which is delivering good and consistent returns. Our retail lending grew by 6% year-on-year, and on the wholesale banking side, our strong innovation and customer-centric culture continues, as well as a good penetration into cash management. Our associates continue to perform well with a 25% increase in their contribution, as we continue to work closely with them in the execution of their strategies. If you deep dive into the numbers in relation to the net operating income, our reported operating income is lower by 5.7% year-on-year.
This is driven primarily by contraction in net interest income, which was slightly offset by fee and other income. This also includes a one-off loss on a sale of a repossessed property in Turkey, which negatively impacted the net operating income. Moving on, our net interest income decreased year-on-year. Firstly, the downward rate revision towards the end of 2024 impacted the interest income for the period up to 30th September 2025, while the first nine months of 2024 benefited from a higher rate environment. The NII was also impacted by the increase in interest and expense due to higher NQIL recognition in the last quarter of 2024.
In relation to interest expense, while we had a reduction in interest expense at a domestic Qatar level due to deposit mix, including CASA increase and decrease in deposit rates, this was outweighed by a higher interest expense in our Turkish subsidiary. As a result, our net interest margin stood at 2.2%. To offset the pressure on the net interest income, we grew our core net fee and commission-based income, which included retail banking fees, including cards, wealth management, remittances, and on the wholesale banking side, cash management and payments-related fees. Further, there was also an increase in group's income from investment securities of approximately 11.3%. In terms of operating expenses, the reported operating costs were higher year-on-year, primarily due to the bank's continued investment in people, digital innovation, and service proposition enhancements, along with increased operating costs from our operations in Turkey, including certain right-sizing initiatives.
Further, the lower operating expenses for the prior period, 30th September 2024, were also attributed to decreased staff-related long-term incentive scheme cost, a consequence of IFRS 2 due to a decline in share price. If we were to exclude the LTIP impact on operating costs, the year-on-year increase is 5.8%. As a result, the group's reported cost-to-income ratio reached 30.2%. At the domestic level, the cost-to-income ratio on a reported basis now is 25.7%, supported by investment in key identified areas. Alternative Bank reported a cost-to-income ratio of 78.4% compared to 97.1% in the same period in 2024. Moving on, the net provisions increased to QAR 603.1 million for the nine months ended 30th September 2025, from QAR 534.9 million in the same period in 2024.
In relation to provisions on loans to customers, we continue to build our loan provisions, which are expected to weigh higher in the second half of 2025. Our recoveries were QAR 208.7 million for the period, as we continue to focus on remedial activities. Therefore, our net cost of risk on loans was 69 basis points, whereas the gross cost of risk on loans is 98 basis points for the nine months ended 30th September 2025. As of 30th September 2025, the NPL ratio stood at 5.8% compared to 6% at the same period last year, while stage three coverage was 56.9%, and the loan coverage ratio, including ECL, stood at 87.9%. Moving on to the balance sheet, the total assets increased by 17%. Loans and advances to customers increased to QAR 104 billion, which includes an increase in acceptances, which are a trade-related item.
If we exclude the increase in acceptances, the loan growth is approximately 8%. This is driven by growth in wholesale banking, both in government and public sector, as well as corporates, and further, retail lending continued to show good progress with 6% growth year-on-year. Customer deposits increased by 10.4% to QAR 85.7 billion at 30 September 2025. This is mainly driven by an increase in time deposits, as well as current and saving accounts. Further, we continue to grow our low-cost deposits, which increased by 6.5% year-on-year, reflecting our efforts to diversify funding sources and strengthen balance sheet resilience. Our capital remains strong. CET1 ratio and capital adequacy ratio stood at 13% and 17.9% respectively, as we continue to generate profits.
Alternative Bank reported a loss of QAR 132.7 million for nine months ended 30 September 2025, compared to a net loss of QAR 73.1 million for the same period in 2024. Although there is an improvement in performance for total fee and other income, the results were mainly impacted by lower net interest income due to a volatile environment, as well as higher operating expenses, primarily due to certain right-sizing initiatives, including FTE reductions and more focus on digital banking. Further, the results also included a one-off loss on the sale of a repossessed property in Turkey. Overall, the impact of hyperinflationary accounting is QAR 271 million for the nine months ended 30 September 2025 across various lines.
Commercial Bank of Qatar will continue to report under IAS 29 till Turkey continues to be classified as a hyperinflationary economy, and accordingly, there will be an ongoing impact to the profit and loss of Commercial Bank of Qatar. Alternative Bank at consolidated level represents only 4% of our overall balance sheet size. Now, looking ahead, we are working on the next phase of our strategy, and we aim to update our stakeholders in the first quarter of 2026. We are in a country which is forecast by many to be the fastest growing GCC economy in each of 2026 and 2027. We are well positioned as a strong domestic bank to support the needs of our customers through best-in-class banking products and services. That is all from my side. Happy to take questions now.
Thank you, Noman. We can now move on to questions and answers. If you have any questions, please raise your hand, or you can ask your questions on the chat box. We have our first question from Rahul Bajaj. Rahul, please unmute yourself and go ahead.
Thank you. Thanks, Farhan. Thanks, Noman. Rahul Bajaj from Citi. I have a few questions, actually. The first one is on tax. You mentioned that there could be some relief which might be decided by the fourth quarter in terms of effective tax rate. Assuming that you get the relief that you are expecting, what would be the effective tax rate for FY 2025 in case the relief comes through? Is this or will this relief be only for 2025, or will this be a going-forward relief so you'll get it for the future years as well? How should we think about that? That's my first question. My second question is on guidance. I remember you used to have the slide on guidance, and I understand you're working on the next stage of the strategy.
Does the 2025 guidance still hold, or are you withdrawing that guidance for now until you come back with a kind of new strategy at the beginning of next year? How should we think about 2025 guidance inputs at this point? That's my second question. My third and final question is on cost of risk. We've seen a significant escalation in cost of risk in the third quarter, and you alluded that the second half of this year we'll continue to see elevated cost of risk. If I move fast forward and think about cost of risk over the next couple of years, how should we think about the progression in cost of risk from these levels? Should we continue to see elevated levels for now for the foreseeable future medium term, or do you think there would be a rapid normalization in the medium term? Thank you.
Sure. Rahul, thank you for your question. First question on the tax thing. If the tax, once the draft executive regulations are finalized and we expect that the Pillar Two tax charge will maybe reverse, it will go back to the previous kind of effective tax rate, which was around 2%- 2.5% based on our Turkish operations. That was on that bit.
2025 guidance withdrawn.
On tax, there was another question.
The effective rate that actually answers what the effective rate that you actually see for 2025 if you have the reversal is only the Turkish tax, which is negligible from the overall scheme.
Yeah. Okay.
Is that only for 2025, or sorry?
Yes. Exactly. The thing is that the draft executive regulations are, once they get finalized, those exemptions are for up to five years, Rahul. We will be exempt from the tax for five years. Moving on to your second question on the guidance space. I guess the guidance space, we kind of removed it because, as we mentioned, we are now moving towards our working on our new strategic plan and the refresh. As I mentioned, we will be updating our stakeholders in the first quarter of 2026. That is why we didn't want to confuse by continuing with that. Having said that, from a 2025 perspective, we know the progress we have made so far.
The key points from a 2025 perspective are that, as I mentioned, consistent with prior years, we will have a heightened level of provisioning in the fourth quarter based on the annual loan loss review with the central bank and external auditors. At the same time, we will expect that there will be also a good pipeline of recoveries as well. That is the view on that one. Moving on to the cost of risk, the way we are looking at the cost of risk is that during the interim period, from back end of 2025 till 2027, we expect that our cost of risk will be at an elevated level. This is consistent with the guidance which we have given previously that till the end of 2027, we expect a heightened level of net provisioning as we build provisions to more prudent levels.
What we expect is that from 2028 and beyond, we expect that our normalized cost of the net normalized cost of risk will be around 70 basis points- 90 basis points, which will be in line with the market. That is how we are seeing cost of risk evolve. I hope that answers your question.
All clear. Thanks, Noman.
We move to the next question. We have a question from [Srikant]. Please unmute yourself and go ahead.
Hi. Am I audible?
Yes.
Yeah. Perfect. Hello, gentlemen. Thanks for the opportunity. I'm [Srikant Wable from DPA]. I have three questions regarding asset quality. Firstly, I wanted to understand more about cleanup exercise. This cleanup exercise was started under previous CEO, and I believe the majority of cleanup was already completed during his tenure. However, still, NPL continued to be higher. In fact, if we talk about absolute terms, NPL increased almost 6% during the quarter. I just wanted to understand what is driving this NPL growth and which sectors are contributing to higher NPLs. Secondly, how is NPL trend in Turkey? Are we seeing higher NPLs from Turkish exposure? Lastly, on stage three coverage ratio, if we compare Commercial Bank of Qatar with other peers, we are having lower stage three coverage ratio.
Do you have any target in your mind regarding stage three coverage ratio from where on we can see some moderation in cost of risk? Yeah.
Okay. Sri, thank you for your question. First, on the NPL, as I mentioned, we are continuing on our journey. What we said, consistent with previous years, is that we will expect this heightened level of provisioning, which will continue till the end of 2027. What we expect is that after that, from 2028 and beyond, we will see to a normalized cost of risk of between a net cost of risk of 70 basis points- 90 basis points. That's in line with peers. Coming to the sectors, most of the challenging sectors are primarily relating to some of the real estate-related activities. That's from a sector perspective. The next question you had was on the stage.
Yeah, the next question was on Turkey.
Yeah, Turkey.
Turkey, the cleanup has actually taken place. The current Turkish NPL ratio is only 1.1%, and their coverage is around 135%.
From a Turkey perspective, as you know, we have really cleaned up the book there. It's kept quite tight, and the book there is quite clean, as Farhan mentioned. NPL is well below 2% there. The third question you had was on stage three coverage. What happened was, and we explained in the previous quarter as well, that in 2024, we had certain accounts which were written off. In Qatar, basically, if you have to write off an account, it has to be approved by the central bank. We had some big chunky write-off amounts. When those were written off, that went off. We had some migration from stage two to stage three. When that migration happens, the provision levels gradually build up. That is why you will see that although it is on the lower side, which is acknowledged, this will steadily build forwards over the coming year.
That will continue going higher. For example, at Q4, we were at around 53% excluding ECL. Now we are at 56%. At year-end, it will further increase, and we'll continue building it in the right direction.
We move to the next question. We have a question from Chiro Ghosh. Chiro Ghosh, please go ahead.
Hi. This is Chiro Ghosh from SICO Bahrain. First, thanks for all the clarification on the asset quality side. My questions are, first one is related to the margin. The net interest margin continues to have stabilized for some time now. Has it bottomed out, and how do you foresee it with the interest rate cycle going downwards? How are you placed? That's my first question. Second one is, what is in the other income? Because other income slightly went up, part of the non-interest income. What comprise of this? Is there any one-off? The third one, quickly, the retail business has been quite strong. If you can throw some color, shed some color on that, that would be helpful. Especially, if the interest rate cycle goes down, would you be better off, or do you expect more loan growth to come from that segment? These are my three questions.
On the NIM, first of all, if you compare our Q2 versus Q3 NIMs, we have maintained the NIM at 2.2%, although it has gone down from the year-end. We do expect some downward pressure, maybe 10 basis points- 15 basis points because of the lower interest rate environment. There will be some pressure, and we'll try to make sure that we are able to manage it. One way we are focusing on is trying to further get more CASA deposits. As I mentioned, our CASA deposits increased. The low-cost fund deposits actually increased by 6.5%. We are focusing on that and trying to reduce some of the cost of funding so that we are able to address some of the pressures on the NIM we had. The second question was in relation to the other operating income you mentioned.
Yes. The other operating income, Shiro, if you look at the year-on-year in the financials, it has actually come down from QAR 151 million to QAR 155 million. There's a drop there. That's mainly because some of our rental income that we are expecting has not materialized. That's a drop that is reflected there.
Moving on to retail, I think it will be good if we can just move to the retail slide. As we have been mentioning, as a strong retail bank, we are really focusing on growing further in retail. Very recently, as mentioned, we have won a few awards as well. Overall, if you look at the summary on how we are doing on retail, our retail lending portfolio increased by 6%. The various streams like personal loan, vehicle loans, mortgages, credit cards, we are really focusing on gaining more market share there. From a performance perspective as well, given the pressures on the NII because of rate reductions, we have been also focusing on increasing our fee revenues, which have gone up by 6.4% year-on-year, which includes loan fees, brokerage remittances. Quite a lot of strong work is being done, and we see retail to continue to grow.
One of the reasons is the kind of customer propositions and the services which are providing to our clients, as well as our mobile banking app, which is one of the best in the region. With all those initiatives, we really see this potential area to continue to grow further.
Can you just 10 basis points- 15 basis point NIM, that you said, that is for this year or over the next couple of quarters?
This quarter.
This quarter. Okay, that's all from my side. Thank you very much.
Thank you.
We have the next question from Waruna Kumarage. Please go ahead, Waruna. Until we have Waruna on the.
Hello.
Go ahead. Just one minute.
Sorry. This is Waruna Kumarage. I'm from SICO Bahrain. I have three questions. The first one, just to clarify what you mentioned regarding the tax reversal. Once the reversal happens, you're saying that the effective rate will be 2%- 2.5% back to the prior years, right? That's what you meant.
Yes.
What are the things that need to be done for this reversal too? From your side, I think one of the factors is your fixed assets outside Qatar to be less than a certain threshold. Have you already reached that level, or do you have to do something to get there?
Yeah, in that context, yes. Those are the kind of things most of the actions have been taken in relation to that. We have made good, very steady progress, and we are confident that we will be able to benefit from the exemptions.
Okay. If that happens, say fourth quarter, there will be possibly a reversal, and then effectively from next year onwards, there will be like 2% and 2.5% effective rate, right?
Yes. Yes. Obviously, that is subject to the finalization of the draft executive regulations, which we hope happened this quarter.
Okay. Fine. Secondly, regarding the loan growth, I think you mentioned that a certain percentage of the loan growth is related to acceptances. How should we look at the sustainability of this growth? I mean, can we expect this loans level, at least the absolute number, to be sustainable, or do you expect some repayments? How does that work out?
I guess the way we have seen, try to analyze that loan growth is that excluding acceptances, it's around 8% growth. Out of that, around 1% is coming from retail of that 8%. Around 3%- 4% is some of the government-related lending. From our Turkish subsidiary, also up to 1%. The remaining corporate loan growth is around 2.5%. That is how we have seen it. That is why we wanted to clarify that, yes, acceptances are kind of showing a bigger number, but that is the breakdown of the loan growth at the moment.
The acceptances-related loans are also generating interest income, right?
No, the thing is that these are trade-related items. They're not interest-bearing. It's just a bit odd that only in Qatar the acceptances are shown in the loans and advances line. If you see some other geographies, this number is shown in other assets, actually. It's just more of a presentation issue.
These are not really like LCs and all that, right? The LCs are different, but this is something else.
These are actually bills. These are trade-related bills, discounting.
Okay. Thank you. Lastly, regarding the deposits, you mentioned that you were trying to reduce your cost of funding by improving low-cost funding. When I see, like, second, like, third quarter per se, the CASA deposit, I think CASA has fallen. The current account has fallen. This number tends to be very volatile quarter to quarter. What is really happening? Why is it so volatile? Why is there a drop in current accounts in this quarter?
As I mentioned, if you look at the interest expense, the interest expense has shown an increase for the nine months. However, on our Commercial Bank domestic level in Qatar, we have seen a decrease in our interest expense. Although the overall interest expense has gone up because of the increase in interest expense from our Turkish subsidiary. That is the reason why the interest expense has gone up.
On the current account drop, most of our CASA accounts are quite sticky, but there are some large players who have current accounts being built up up to the month end, and you have the monthly cycle payment taking place. That would drop. A significant amount of our current account and saving accounts are quite sticky.
Okay.
Yes.
All right.
Okay. Thank you very much. Thank you. That's it from me.
We have a question from Andy Brunel. I'll just read out the question. In 2Q, I thought the run rate on loan growth excluding acceptances was cited as 3.5%. I think you just said 8%. Are these measuring different things, or has there been an acceleration in underlying credit demand for Commercial Bank of Qatar? The acceptances are short-term, and management said that they are rolled off soon. Is this before end of Q fully of 2025? What's the impact does this have on our NIM?
Okay. Andy, thanks for your question. First of all, these acceptances are basically up to six to nine months as well, so there's a slightly longer duration of them. If you see the acceptances number from Q2 to Q3, actually, that is flattish, right? It hasn't gone up. Eventually, gradually, it will go down. When we explained Q3, sorry, Q2 as well, when we kind of showed the breakdown, it was pretty similar that it was a 6%- 7% increase, and the government overdraft was one number increase in retail. The corporate growth was around 3% compared to 2.5%. It has remained fairly stable from Q2 to Q3. To answer your questions, I think some of these acceptances will still be on the balance sheet at the fourth quarter because they have a slightly longer duration as well.
We'll move to the next question. We have a question from [Abel] . [Abel] , please go ahead.
Yes, sorry. I was on mute here. Thank you for the conference call. I think from my end, could you please remind us the status of the share buyback program? I'm not sure if you already mentioned that. How far are you on that front? That's the first question. Secondly, when you present the new strategy and look forward to that next year, would you be also presenting your view on subsidiary ownership stakes that you have in the Gulf and in Turkey, right? I mean, that's really it here. Thank you.
Okay. [Abel], thank you. Thanks for your question. On the first question on the buyback, that is subject to the approval of the central bank. That's where we are. We haven't had any updates, so we can't tell you more on that. On your second question in relation to strategy, Steven Moss, our new CEO, is in Washington for IMF meetings along with other delegates from Qatar. He will be present for the year-end results in January, and he will be updating the market in the first quarter on the strategy as well. From Steven's perspective, in the first two months, what he has been doing is listening to key stakeholders, including clients, staff, regulators, and shareholders. He's very focused on three things: one is the go-forward strategy, secondly, returns, and thirdly, safe, sustainable profitability. Those are the areas he's focusing on. That will be the basis for the strategy.
Right now, I will not be able to comment on whether that will go down to the subsidiary level at this stage, but high level, that is how we are going to approach it.
We have the next question from Rahul again. Rahul, please go ahead.
Thank you. Thanks for taking my follow-up question. Two questions. One is a clarification, basically, of an earlier comment that was made. I think you mentioned 10 basis points- 15 basis points further NIM pressure in fourth quarter Q o Q. Just wanted to clarify, is this Commercial Bank business only, or you're talking about group level? Because what I'm asking is my understanding is there is a decent tailwind from Turkey as rates go down in Turkey or has gone down in Turkey. Turkish NIMs could actually improve in fourth quarter, in my view. How should I think about the 10 basis points- 15 basis points? That's my first question. My second question, and I think I've asked this question once before in one of the previous calls, is around the FX income. The FX income line on the P&L continues to remain negative for quite some time now.
It was negative again in 3Q. How should we think about this line going forward? When can this line turn positive and start generating positive returns? Thank you.
Okay. Rahul, on the first question, the NIM, as you rightly said, as things are improving in Turkey and as the CBRT rate cuts happen, the NIM will benefit there. The 10 basis points- 15 basis point, any downward pressure is from Qatar operations. On foreign currency, Farhan, on the foreign currency.
Sorry, I didn't get that.
On the foreign currency, you asked about the negative, right? I think it relates to some of the swap costs which we have, which is basically going into that line. I think what we see now is a more stable view with a downward trend, I would say, but it will not increase. The key point, Rahul, also to remind you, is that last year, actually, there was a big movement in Turkey for some of the FX-related activities there. That abnormality will go away, and the negative will continue to come down. We are not expecting it to increase.
Understood. Thank you.
We have the next question from [Shalom Shikhada Abe]. Can you please unmute yourself and go ahead?
Hello. Thank you for the call. I have a few questions. The first one on the government participation. Could you quantify the share of the government in deposit and loan growth? What is your target allocation? What is your expected allocation over the medium term? As for the liquidity, overall, if we take the share of the deposits, it's relatively low compared to other peers. Do you have any strategy in that part? Finally, on the tech spending, you mentioned the operating costs are elevated by the technology and AI-related spending. If you could give us an idea how you envision this technology upgrade, is it something related to the digital banking? Is it related to the operational cost optimization, or are we expected to see more updates from you as part of the strategy? Thanks.
Thank you. On the first question in relation to government, if you see the domestic portfolio, on the left-hand side, you can see the breakdown of the Qatari banks of how they break down. 35% is government there. On the right-hand side, you'll see our contribution on the government side is 26%. What we will say is that, obviously, some of the government deposits go to other banks, as you know, in Qatar. We are trying to maintain growth as much as possible. That's the approach. Yes, it is slightly lower, but obviously, we are trying to gain that. The other thing to point out is that from an individual perspective, as I said, we are also maintaining a healthy 27%, trying to again increase our deposits as we go along. That was the question on government deposits. Your question on technology, right? Thanks for that good question.
We have been focusing on digital banking, and a significant focus is AI-related as well. There are various AI-related initiatives which we are looking into as well and investing into that area, as well as some of the automations which we are doing at back end. There is a lot of investment also going into our mobile app as well, which, as I mentioned, is one of the best in the regions. The kind of functionality it has is that most of the activities are now happening on the app as well. There is a lot of tech-related investment we are making on that front. I hope I answered your question. Did I miss anything?
Shalom, you said a second question. Can you just repeat your second question, please?
Second question was on whether you have any target for a loan-to-deposit ratio if you are planning to expand your current account or deposit franchise, and if yes, what is your strategy? On these technologies, thank you so much for the information. Just one quick question. When would it be possible to be able to quantify expected returns from these technology investments?
Okay. On your second point on technology, I think that's a fair question. When we are doing this work from a strategy perspective, I'm expecting that we will be touching upon that piece as well. On the ratio side, we have the credit deposit ratio in Qatar, which is less than 100, and we are complying with the ratio. From a ratio perspective, we are actively managing, diversifying on the deposit side. As I mentioned, increasing our CASA deposit is quite important for us and increasing our low-cost deposit given the pressures from a rate reduction perspective. We are making progress on increasing our low-cost deposits and also increasing them through that perspective. Overall, we are complying with the ratio and trying to actively manage through our asset liability management activities.
We have a question on the chat box. Please give us an update on the share buyback program. What is the expected timeline? This is from Mabel Pereira.
On the buyback, unfortunately, we are waiting for the central bank approval. From a timeline perspective, I cannot comment on it. That's where we are right now. We haven't heard back from them. Unfortunately, I don't have a timeline for you. Sorry.
The next question is from[ Izul Epikriya]. Please unmute yourself and go ahead.
Hello. Hi. Okay. Just to follow up on the questions regarding the stage three coverage, can you give us some colors on where do you want to take this to? Some colors, like some guidance on this. That's the first question.
Yeah, second question.
Okay. Second question is because you mentioned that you're going to build the provisions for a more prudent level until the end of 2027, right? You also mentioned that it is mainly from real estate sectors. Which particular sectors or industries actually you'll be building provision from?
Okay. I guess from a coverage perspective, as I mentioned, our coverage ratio went down because of these big write-offs we had and new migration into stage three. Excluding ECL, it was at 53% at year, and now it is at 56% at Q3. As I mentioned, it will continue increasing. It will healthily increase over the next few years because of the point I mentioned about our journey from a heightened provisioning level perspective. It will go in the right direction. Talking about the challenging sectors, real estate. Yes, it's primarily real estate. The way to look at real estate is that it is kind of three components. One is the hotel-related component. One is the big residential buildings which are constructed and rented out. Thirdly is CRE. It's a combination of all three there. On the CRE side, we have much less exposure there.
Most of them have been related to the first two.
Okay, thank you very much.
We have a question from Waruna Kumarage. Waruna, please unmute yourself and go ahead.
Yeah, just a clarification again related to the, you said there was an expense, one-off expense related to reprocessed assets in Turkey.
Yes.
What is the magnitude of that? Is it very significant?
I think it's around 50. The loss was around QAR 50 million on it.
QAR 50 million?
Yes.
Is that coming under which line item?
Under operating income.
Okay. All right. Okay. Right. Thank you.
We have no more questions from the audience. If that's the case, we would like to conclude this particular investor call. We would like to thank everyone for taking part, and we'll see you all at the next quarter.
Thank you, everyone. If you have any follow-up questions, please feel free to reach out to us. Thank you so much.