The Commercial Bank (P.S.Q.C.) (CBQK.QA) Earnings Call Transcript & Summary

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 to my left, Noman Ali, who is the Chief Financial Officer of 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 question 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 9 months ended 30th September 2025, I will focus mainly on Slide #7, 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 9 months ended 30th September 2025 as compared to QAR 2,341 million for the 9 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 our 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 is also -- 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 9 months of 2024 benefited from a higher rate environment. The NII was also impacted by the increase in interest and suspense due to higher NPL 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 rightsizing initiatives. Further, the lower operating expenses for the period -- 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 decline in share price. If we were to exclude the LTIP impact on operating cost, the year-on-year increase is 5.8%. As a result, the group's reported cost-to-income ratio reached 30.2%. At domestic level, the cost-to-income ratio on a reported basis now is 25.7%, supported by investment in key identified areas. Alternatif 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 by -- increased to QAR 603.1 million for the 9 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 9 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 3 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 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. Alternatif Bank reported a loss of QAR 132.7 million for 9 months ended period 30th 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 with 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 rightsizing 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 9 months ended 30th September 2025 across various lines. Commercial Bank 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. Alternatif 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. So that is all from my side. Happy to take questions now.

Thank you, Noman. We can now move on to question and answers [Operator Instructions] We have our first question from Rahul Bajaj.

Rahul Bajaj from Citi. I have a few questions actually. The first one is on tax. So 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 '25 in case the relief comes through? And is this -- will this relief be only for 2025? Or this will be a going-forward relief, so you'll get it for the future years as well? So how should we think about that? That's my first question. My second question is on guidance. I remember you used to have this slide on guidance. I understand you're working on the next stage of the strategy. But does the 2025 guidance still hold? Or you are withdrawing that guidance for now until you come back with a new strategy at the beginning of next year? How should we think about 2025 guidance inputs at this point? That's my second question. And my third and final question is on cost of risk. We've seen a significant escalation in cost of risk in third quarter. And you kind of alluded that second half of this year will 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 you think there would be a rapid normalization in the medium term?

Sure. Rahul, thank you for your question. So first question on the tax thing. So if the tax -- when the draft executive regulations are finalized and we expect that the Pillar Two Tax charge will may be reversed. So then it will go back to the previous kind of effective tax rate, which was around 2% to 2.5% small based on our Turkish operations. So that was on that bit.

2025 guidance withdrawing.

On tax, there was another question.

So the effective rate that actually answers. The effective rate that you actually see for 2025, if you had the reversal is only the Turkish tax, which is negligible from overall scheme.

Is that win for 2025 or -- sorry.

Yes. So -- Exactly. So the thing is that the draft executive regulations, once they get finalized, those exemptions are for up to 5 years, Rahul. So we will be exempt from the tax for 5 years. Okay? Moving on to your second question on the guidance page. So I guess the guidance page, we kind of removed it because as we mentioned that we are now moving towards our -- working on a new strategic plan and the refresh. And as I mentioned, we will be updating our stakeholders in the first quarter of 2026. So that is why we didn't want to confuse by continuing with that. Having said that, so I guess from a 2025 perspective, we know the progress we have made so far. The key points from a 2025 perspective is that, as I mentioned, that consistent with prior years, we continue -- 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. And at the same time, we will expect that there will be also a good pipeline of recoveries as well. So that is the view on that one. Then moving on to the cost of risk, right? So the way we are looking at the cost of risk is that during the interim period, I guess, from back end of 2025 till 2027, we expect that our cost of risk will be at an elevated level. And 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. And then 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 to 90 basis points, which will be in line with our -- with the market. So that is how we are seeing cost of risk evolve. I hope that answers your question.

We move to the next question. We have a question from [ Srikanth ].

Am I audible?

Yes.

Srikanth [indiscernible]. I have 3 questions regarding asset quality. Firstly, I wanted to understand more about cleanup exercise. So this cleanup exercise was started under previous CEO, and I believe 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. So 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? So are we seeing higher NPLs from Turkish exposure? And lastly, on Stage 3 coverage ratio. So if we compare CBQ with other peers, we are having lower Stage 3 coverage ratio. So do you have any target in your mind regarding Stage 3 coverage ratio from where on we can see some moderation in cost of risk? Yes, that's it.

Okay. Sri, thank you for your question. So first, on the NPL. So basically, as I mentioned, that we are continuing on our journey. And what we've said consistent with previous years is that we will expect like this heightened level of provisioning, which will continue until the end of 2027. And then 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 to 90 basis points. So that's -- or which is, I guess, in line with peers. So then coming to the sectors, right? So most of the challenging sectors are primarily this has been relating to some of the real estate-related activities. So that's from a sector perspective. And then the next question you had was on the Stage 3?

Yes. The question was on Turkey.

Yes, Turkey.

So Turkey, the cleanup has actually taken place. The current Turkish NPL ratio is only 1.1% and the coverage is around 135%.

So from a Turkey perspective, as you know, like 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. And the third question you had was on Stage 3 coverage. So what happened was, and we explained in the previous quarter as well that in 2024, we had certain accounts which were written off. And in Qatar, basically, if you have to write off an account, it has to be approved by the Central Bank. So we had some big chunky write-off amount. So when those were written off, that went off. And then we had some migration from Stage 2 to Stage 3. So when that migration happens, so what happens is that the provision level is gradually built up. So that is why you will see that although it is on the lower side, which is acknowledged, but this will steadily build forward over the coming years. So that will continue going higher. So for example, like -- so at Q4, we were at around 53%, excluding ECL, now we are at 56%. But 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.

This is Chiro Ghosh from SICO Bahrain. First, thanks for the clarification on the asset quality side. My questions are -- first one is related to the margin. So the net interest margin continues to have stabilized for some time now. Has it bottomed out? And how do you foresee it with interest rate cycle going downwards? So 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 noninterest income. So what comprised of this? Is there any one-off? And the third one, again, quickly, the retail business have been quite strong. So if you can throw some color -- shed some color on that, that would be helpful. And especially again, 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 3 questions.

So on the NIM, first of all, if you compare our Q2 versus Q3 NIM, so we have maintained the NIM at 2.2%, although it has gone down from the year-end. Again, so we do expect some downward pressure, maybe 10 to 15 basis points because of the lower interest rate environment. So there will be some pressure, and we'll try to make sure that we are able to manage it. And one obviously, we are focusing on is trying to further get more CASA deposits. And as I mentioned, our CASA deposits increased. The low-cost deposits actually increased by 6.5%. So 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.

So the other operating income, Chiro, if you look at the year-on-year in the financials, it has actually come down from QAR 151 million to QAR 155 million. So there's a drop there. That's mainly because some of our rental income that we are expecting has not materialized. So that's a drop that is reflected there.

And moving on to retail, I think it will be good if you can just move to the retail slide. So as we have been mentioning that as a strong retail bank, we are really focusing on growing further in retail. Very recently, as mentioned, we have won certain -- a few awards as well. So overall, if you look at the summary on how we are doing on retail, our retail lending portfolio increased by 6%. Again, the various streams like personal loan, vehicle loans, mortgages, credit cards, we are really focusing on gaining more market share there. And then 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. So quite a lot of strong work is being done, and we see retail to continue to grow. And one of the reasons is the kind of customer propositions and the services which we are providing to our clients as well as our mobile banking app, which is one of the best in the region. So with all those initiatives, we really see this potential area to continue to grow further.

Just 10 to 15 basis point NIM that you said that is for this year or over the next couple of quarters?

This quarter.

We have the next question from Waruna Kumarage. Please go ahead, Waruna. Okay. Until we have Waruna on the -- we'll go with -- Yes, Waruna.

This is Waruna Kumarage. I'm from SICO Bahrain. So I have 3 questions. The first one, just to clarify what you mentioned regarding the tax reversal. So once the reversal happens, you're saying that effective rate will be 2% to 2.5% back to the prior years, right? That's what you mentioned.

Yes.

And what are the things that need to be done for this reversal to -- from your side, I think one of the factors is your fixed assets outside Qatar to be less than a certain threshold, but have you already reached that level? Or do you have to do something to get there?

Yes. So in that context, yes, so those are the kind of things. Most of the actions have been taken in relation to that, and we have made good, very steady progress, and we are confident that we will be able to take the -- we will be able to benefit from the exemptions.

Okay. So if that happens, say, fourth quarter, there will be possibly be a reversal and then effectively from next year onwards, there will be like 2% and 2.5% effective rate, right?

Yes. Yes. And obviously, that is subject to the finalization of the draft executive regulations, which we hope -- which happened in this quarter.

Okay. Okay. Fine. And secondly, regarding the loan growth, I think you mentioned that certain percentage of the loan growth is related to acceptances. So how should we look at the sustainability of this growth? I mean, are we looking -- I mean, can we expect these loans level what -- I mean, at least the absolute number to be sustainable? Or do you expect some repayments? So how does that work out?

So I guess the way we have seen -- tried to analyze that loan growth is that excluding acceptances, it's around an 8% growth. And out of that, around 1% is coming from retail of that 8%, then around 4% is -- 3% to 4% is some of the government-related lending and then from our Turkish subsidiary also up to 1%. And then remaining corporate loan growth is around 2.5%. So that is how we have seen it. So that is why we wanted to clarify that, yes, acceptance is showing a bigger number, but that is the breakdown of the loan growth at the moment.

But the acceptances related loans are also generating interest income, right?

No, these are trade-related -- No. So the thing is that these are trade-related items. They're not interest-bearing. And it's just a bit odd that only in Qatar, the acceptance are shown in the loans and advances line. So if you see some other geographies, this number is shown in other assets actually. It's more of a presentation issue.

But these are not really like LCs and all that, right? The LCs are different, but this is something else.

These are trade-related bill discounting.

Okay. Okay. Okay. Fine. Okay. And lastly, I mean, regarding deposits, you mentioned that you were trying to reduce your cost of funding by improving low-cost funding. But when I see second -- third quarter per se, the CASA it was I think -- the CASA has fallen, the current account has fallen. I mean this number tends to be very volatile quarter-to-quarter. So what is really happening? Why is it so volatile? Why is there a drop in current accounts in this quarter?

So the thing is that, as I mentioned that if you look at the interest expense, the interest expense has shown an increase for the 9 months. However, on a CB, 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. So that is the reason why the interest expense has gone up.

So on the current account drop, I mean, most of our CASA accounts are quite sticky, but there are some large players who have current account being built up, up to the month end and you have the monthly cycle payment taking place, so that would drop. But a significant amount of our current account and saving accounts are quite sticky. We have a question from [ Andy Runell ]. I'll just read out the question. In 2Q, I thought the run rate on loan growth, excluding acceptance 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 CBQ? The acceptances are short term and management said that they roll off soon. Is this before end of full year 2025? What the impact does this have on our NIM?

Okay. So Andy, thanks for your question. First of all, sir, these acceptances are basically up to 6 to 9 months as well. So there's a slightly longer duration of them. So if you see the acceptances number from Q2 to Q3, actually, that is flattish, right? So it hasn't gone up. So eventually, gradually, it will go down. And when we explained Q3 -- sorry, Q2 as well, when we kind of showed the breakdown, it was pretty similar that it was 6% to 7% increase and the government overdraft was one number increase in retail. So the corporate growth was around 3% compared to 2.5%. So it has remained fairly stable from quarter 2 to quarter 3. But to answer your question, I think that 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 Aybek Islamov.

Yes. Sorry, I was on mute. So thank you for the call. I think from my end, could you please remind us the status of the buyback? 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.

Okay. Aybek, thanks for your question. So on the first question, on the buyback, so that is subject to the approval of the Central Bank. So that's where we are. So we haven't had any update. So we can't tell you more on that. Then on your second question in relation to strategy. So Stephen Moss, our new CEO, he's in IMF right now in Washington for IMF meetings, along with other delegates from Qatar. So he will be present for the year-end results in January. And obviously, he will be updating in the market in the first quarter on the strategy as well. So from Stephen's perspective, in the first 2 months, what he has been doing is he has been listening to key stakeholders, including clients, staff, regulators and shareholders, and he's very focused on 3 things. One is the go-forward strategy; secondly, returns; and thirdly, safe, sustainable profitability. So those are the kind of areas he's focusing on. So that will be the kind of 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.

2 questions. One is a clarification basically of an earlier comment that was made. I think you mentioned 10 to 15 basis points further NIM pressure in fourth quarter Q-on-Q. Just wanted to clarify, is this Commercial Bank Qatar 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. So Turkish NIMs could actually improve in fourth quarter in my view. So I mean, how should I think about the 10 to 15 basis points? So that's my first question. And my second question, and I think I've asked this question once before in one of the previous calls is around the income because 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?

Okay. Rahul, on the first question, the NIM, you rightly -- as you rightly said that as things are improving in Turkey and as the CBRT rate cuts happen, then the NIM will benefit there. Yes, the 10 to 15 basis points, any downward pressure is from Qatar operations. And then on foreign currency on the foreign currency -- so on the foreign currency, you asked about the negative, right? So I think it relates to some of the swap costs, which we have, which is basically -- which is going into that line. I think what we see now is a more stable view and with a downward trend, I would say so, 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 actually from some of the FX-related activities there. So that abnormality will go away and the negative will continue to come down. So yes, we are not expecting it to increase.

We have the next question from [indiscernible].

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? And what is your target allocation? What is your expected allocation over medium term? And 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? And 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?

Thank you. So on the first question in relation to government. So if you see like the domestic portfolio, so on the left-hand side, you can see the breakdown of the Qatari banks of how they kind of break down, 35% is government there. And on the right-hand side, you will see like our contribution is 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. And we are trying to maintain, grow as much as possible. So 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. So that was the question on government deposits. Then your question on technology, right? So thanks for that good question. So we have been focusing on digital banking and a significant focus is AI related as well. So 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. And there's 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. So there's a lot of tech-related investment we are making on that front. I hope I answered your question or did I miss anything?

[indiscernible] you said the second question. Can you just repeat your second question, please?

Second question was on the -- whether you have any target for loan-to-deposit ratio, if you are planning to expand your current account or deposit franchise? And if yes, what is your strategy? And 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. So I guess on your second point on technology, I think that's a fair question. So I think when -- again, when we are doing this work from a strategy perspective, we will -- I'm expecting that we will be touching upon on that piece as well. Then I guess on the ratio side, so we have the credit deposit ratio in Qatar, which is less than 100%, and we are complying with the ratio. So from a ratio perspective, we are actively managing, diversifying on the deposit side, as I mentioned, that increasing our CASA deposit is quite important for us and increasing our low-cost deposit given the pressures from a rate reduction perspective. So we are making progress on increasing our low-cost deposits and then also increasing them through that perspective. So 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 buyback program. What is the expected time line? These are from [ Mabel Pareira ].

Yes. So on the buyback, unfortunately, we have -- we are waiting for the Central Bank approval. We have -- so from a time line perspective, I cannot comment on it. So yes, that's where we are right now. We haven't heard back from them. Unfortunately, I don't have a time line for you, sorry.

The next question is from [indiscernible].

Okay. Just to follow up on the questions regarding the Stage 3 coverage. So can you give us some color on where do you want to take this to? Some color on this. That's the first question.

Yes. Second question?

Okay. Second question is on the -- because you mentioned that you're going to build the provisions for a more prudent level until end of 2027, right? And you also mentioned that it is mainly from real estate sectors or which particular sectors or industry actually you'll be building provision from?

Okay. So I guess from a coverage perspective, as I mentioned that our coverage ratio went down because of like these big write-offs we had in new migration into Stage 3. So excluding ECL, it was at 53% at year-end and now, it is at 56% at Q3. As I mentioned, it will continue increasing. So it will healthily increase over the next few years because of the point I mentioned about our journey from a heightened provisioning level perspective. So yes, it will go in the right direction. And then talking about the challenging sectors, real estate, yes, so it's primarily real estate. And the way to look at real estate is that, that is kind of 3 components. One is the hotel-related component. One is the big residential building, which are constructed and rented out. And thirdly is like CRE. So it's a combination of all 3 there. So -- but on the CRE side, we have much less exposure there on it. So most of them has been related to the first 2.

We have a question again from Waruna Kumarage again.

Yes. Just a clarification again related to the -- you said there was an expense -- one-off expense related to repossessed assets in Turkey. What is the magnitude of that? Is it very significant?

So I think it's around -- like the loss was around QAR 50 million.

QAR 50 million?

Yes.

So that is coming under which line item?

Other operating income. So we have no more questions from the audience. If that's the case, we would like to conclude this particular investor call, and we would like to thank everyone for taking part, and we see you all at the next quarter.

And thank you, everyone. And if you have any follow-up questions, please feel free to reach out to us. Thank you so much.