Public Sector Drives Qatar Banks Credit Disbursement to QR1.4tn in July: QNBFS

Driven by the public sector, loans disbursed by the local banks in Qatar increased by 1.1% MoM to QR1,406.9bn in July, according to QNB Financial Services (QNBFS).

Total public sector loans expanded by 4.5% MoM (+9.5% on FY2024) in July.

The government segment (represents 35% of public sector loans) was the main driver for the public sector gains with an expansion of 7.2% MoM (+32.7% on FY2024), while the government institutions segment (represents 61% of total public sector loans) increased by 3.3% MoM (+0.4% on FY2024).

Further, the semi-government institutions segment contributed immaterially, moving up by 1.1% MoM (-0.9% compared to FY2024) during July.

Total private sector loans were flat MoM (+2.6% vs. FY2024) during July with negligible contribution across all segments.

Outside Qatar loans were flat MoM (and compared to year-end 2024) in July, QNBFS said in its ‘Qatar Monthly Key Banking Indicators’.

Loan provisions to gross loans moved up to 4.2% MoM in July, compared to 3.9% (as of year-end 2024).

Loan provisions have increased 11.8% compared to 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.

Loans grew by an average 5.4% over the past five years (2020-2024), QNBFS noted.

Banking sector total assets remained flat MoM (+3.4% vs. year-end 2024) in July 2025 at QR2.117tn.

With loans growth outpacing deposits during July 2025, the loan-to-deposit ratio (LDR) came in at 134% compared to 132% in June.

Public sector deposits climbed up by 0.6% MoM (+3.4% compared to FY2024) in July.

Looking at segment details, the government segment (represents 34% of public sector deposits) moved up by 1.6% MoM (+4% compared to FY2024).

On the other hand, the government institutions’ (represents 54% of public sector deposits) was flat MoM (+4.1% vs. FY2024), while the semi-government institutions’ segment (represents 12% of public sector deposits) increased by 1.9% MoM (-1.6% vs. FY2024) during July 2025.

Non-resident deposits contracted by 3.2% MoM (-2.2% vs. FY2024) during July 2025. Non-resident deposits as a percentage of declined from 19.2% in June 2025 to 18.7% in July 2025 (FY2025: 19.5%).

Private sector deposits remained flat MoM (+2.9% compared to FY2024) in July.

On the private sector front, companies and institutions was flat MoM (Flat compared to FY2024). Moreover, the consumer segment also remained flat MoM (+5.2% compared to FY2024).

The overall loan book increased by 1.1% MoM in July 2025, aided by public sector loans.

Qatar banking sector liquid assets to total assets stood at 31% in July compared to 32% in June, which remains in a strong position, QNBFS said.