Doha, Qatar: Banks in Qatar witnessed an uptick in loans driven by the public sector to QR1,406.9bn showing a surge of 4.5 percent year-to-date (YTD) while private sector loans displayed flat performance in July this year.
The banking sector loan book increased by 1.1 percent month-on-month (MoM) while deposits remained flat MoM (rise of 2.1% versus year-end 2024), in July 2025. With loans growth outpacing deposits during July 2025, the loans to deposits ratio (LDR) came in at 134.3 percent versus 132 in June 2025. The loans grew by an average 5.4 percent over the past five years (2020-2024), according to QNB Financial Services (QNBFS) monthly banking sector indicators.
The banking sector total assets remained flat MoM (moved up by 3.4 percent versus year-end 2024) in July 2025 at QR2.117 trillion. The assets grew by an average 5.7 percent over the past five years (2020-2024) and liquid assets to total assets stood at a healthy 31 percent level in July 2025
While the public sector deposits climbed up by 0.6 percent MoM (rise of 3.4 percent versus FY2024) in July 2025. Looking at segment details, the government segment (represents 34 percent of public sector deposits) moved up by 1.6 percent MoM (increase of 4 percent versus FY2024).
On the other hand, the government institutions’ (represents 54 percent of public sector deposits) was flat MoM (up by 4.1 percent versus FY2024), while the semi-government institutions’ segment (represents 12 percent of public sector deposits) increased by 1.9 percent MoM (a decrease of 1.6 percent versus FY2024) during July 2025, the report noted.
The non-resident deposits contracted by 3.2 percent MoM (decline of 2.2 percent versus FY2024) during July 2025. Non-resident deposits as a percentage of declined from 19.2 percent in June 2025 to 18.7 percent in July 2025 (FY2025: 19.5 percent).
The private sector deposits remained flat MoM (up by 2.9 percent versus FY2024) in July 2025. On the private sector front, companies and institutions was flat MoM. Moreover, the consumer segment also remained flat MoM (up by 5.2 percent versus FY2024).
The government segment (represents 35 percent of public sector loans) was the main driver for the public sector gains with an expansion of 7.2 percent MoM (up by 32.7 percent versus YF2024), while the government institutions segment (represents 61 percent of total public sector loans) increased by 3.3 percent MoM (up by 0.4 percent versus FY2024).
Further, the semi-government institutions segment contributed immaterially, moving up by 1.1 percent MoM (decrease of 0.9 percent versus FY2024) during July 2025.
The total private sector loans were flat MoM (increased 2.6 percent versus FY2024) during the month of July with negligible contribution across all segments. Outside Qatar loans were flat MoM (flat versus year-end 2024) in July 2025.
QNBFS further noted that the Qatar banking sector loan provisions to gross loans moved up to 4.2 percent MoM in July 2025, compared to 3.9 percent as of year-end 2024.
Loan provisions have increased 11.8 percent versus year-end 2024 as banks have been provisioning for Stage 2 and Stage 3 loans mainly emanating from contracting and real estate sectors. On a positive note, Stage 3 loans have remained stable.
Meanwhile the banking sector liquid assets to total assets stood at 31 percent in July versus 32 percent in June, which remains in a strong position.
