Doha, Qatar: Qatar’s banking sector remained resilient in June 2026, with total assets holding steady at QR2.197 trillion, according to QNB’s latest monthly banking sector report. Total assets were unchanged from May but 2.1 percent higher than year-end 2025.
The report showed that the sector’s total loan book remained flat month-on-month at QR1.472 trillion, marking growth of 2.6 percent since the end of last year. Deposits also remained stable at QR1.105 trillion in June, up 5.8 percent from year-end 2025.
The loan-to-deposit ratio (LDR) remained unchanged at 133 percent in June, compared with 137 percent at the end of 2025.
QNB noted that under the Qatar Central Bank’s methodology, which includes stable sources of funding, the sector’s LDR remains comfortably below the regulatory ceiling of 100 percent. Public sector deposits continued to support the banking system, increasing 3.2 percent month-on-month and 10.2 percent since year-end 2025. The rise was mainly driven by government institutions, whose deposits grew 7.2 percent during the month and 20 percent compared with the end of last year. Deposits from semi-government institutions also increased by 4.3 percent month-on-month and were up 18.2 percent year-to-date.
In contrast, deposits from the government segment declined by 5.1 percent during June and were 9.4 percent lower than at year-end 2025.
Private sector deposits fell 0.9 percent from May but remained 4.1 percent higher than at the end of 2025. Deposits from companies and institutions declined 2 percent during the month, while consumer deposits were largely unchanged. Non-resident deposits also eased by 2.7 percent month-on-month, although they were still 1.7 percent above year-end levels and accounted for around 18 percent of total deposits.
On the lending side, overall loan growth was broadly flat as gains in public sector and overseas lending offset weaker private sector credit demand.
Public sector loans rose 0.9 percent in June, supported by a 2.4 percent increase in lending to semi-government institutions and a 0.9 percent rise in loans to government institutions. Lending to the government remained unchanged during the month.
Private sector lending declined 0.8 percent, weighed down by a sharp 27.2 percent fall in industrial sector loans and a 2.5 percent decline in real estate financing. Most other private sector segments were broadly unchanged.
Meanwhile, lending outside Qatar continued its strong growth trajectory, expanding 3.6 percent during June and 56 percent compared with year-end 2025.
Asset quality indicators improved during the month, with loan provisions to gross loans declining to 3.8 percent from 4.1 percent in May. Loan loss provisions fell 6.8 percent month-on-month and were 2.2 percent lower than at the end of 2025.
The report also highlighted the sector’s strong liquidity position, with liquid assets accounting for 30 percent of total assets in June, unchanged from May and year-end 2025.
