Qatar banks maintain balance sheet stability as international lending grows: QNBFS

Qatari banks demonstrated stability in their balance sheets in August, as reported by QNB Financial Services. Commercial banks maintained assets at QR2.19tn, marking a 2.3% increase from the end of 2025. Total loans across the banking system grew by 3.5% since the year-end, reaching QR1.48tn. International credit expansion was the main driver, growing by 4.6% in August, a significant 63.1% increase from the end of 2025.

The domestic market saw an increase in semi-government loans by 4.6% month-over-month, and a substantial 25.5% rise compared to December 2025. However, public sector loans declined by 0.8% month-over-month, and government institutions contracted by 1.8% during August. Private sector corporate deposits rose by 1.5% month-over-month, while total private sector loans remained steady.

Retail credit remained unchanged, and real estate lending also stayed flat. Asset quality metrics remained robust, with loan provisions at 3.8% of gross loans, slightly below the 4.0% at year-end 2025. Liquid assets covered 30% of total bank assets in August, consistent with previous months and the end of 2025. Total deposits grew to QR1.06tn, up 1.6% compared to year-end 2025, despite a 0.8% month-over-month contraction.

Public sector deposits fell by 1.3% month-over-month, dragging the overall deposit figures. Government deposits increased by 2.7% month-over-month, while government institutions decreased by 3.2% and semi-government deposits dropped by 1.8%. Non-resident deposits declined by 2.1% month-over-month, making up 18.9% of total deposits.

The nominal loan-to-deposit ratio increased to 140% in August, slightly above the July 139% and the year-end 137% level, yet still below the 100% regulatory threshold set by Qatar Central Bank. Loan loss provisions rose by 0.7% month-over-month, a slight decrease from the 1.1% at year-end 2025.