Qatar Banks’ Total Assets Scale Up to QR2.125tn in June: QNBFS

Total assets of commercial banks in Qatar expanded by 2.8% MoM during June to QR2.125tn, according to QNB Financial Services (QNBFS).

Total assets moved up 3.8% in June compared to end-2024. Assets grew by an average 5.7% over the past five years (2020-2024).

Liquid assets to total assets stood at a healthy 32% level in June, QNBFS said.

Loans disbursed by commercial banks in the country increased by 1% MoM in June to QR1,391bn.

The loans increase in June was mainly due to an increase by 1%/0.7% in public sector/private sector loans.

Loans expanded by 3.5% in June this year compared to a growth of 4.6% in 2024, growing by an average 5.4% over the past five years (2020-2024).

The government segment (represents 34% of public sector loans) was the main driver for the public sector gains with an expansion of 15.8% MoM (+23.9% compared to 2024), while the government institutions segment (represents 62% of total public sector loans) contracted by 5.2% MoM (-2.8% compared to 2024).

However, the semi-government institutions expanded by 9.4% MoM (-2.0% compared to 2024) during June.

According to QNBFS, loan provisions to gross loans remained flattish at 4.1% in June compared to May this year.

Loan provisions have increased from 2.4% in 2020 to 4% in 2023 and stood at 4.1% (as of May this year) as banks have been provisioning for Stage 2 and Stage 3 loans, mainly emanating from the contracting and real estate sectors.

Deposits (with local banks) gained 1.9% MoM in June to QR1,052.5bn, QNBFS noted.

The deposits increase in June was driven by 1.7%/1.1% surge in public sector/private sector deposits and an expansion of 3.7% in non-resident deposits.

Deposits grew up 2.5% in June compared to an increase by 4.1% in 2024, while they grew by an average 3.9% over the past five years (2020-2024).

The government segment (represents 34% of public sector deposits) moved up by 1.6% MoM (+2.4% versus 2024).

Moreover, the government institutions’ (represents 54% of public sector deposits) inched up by 0.9% MoM (+4.5% versus 2024), while the semi-government institutions’ segment (represents 12% of public sector deposits) also moved up by 0.9% MoM (-3.5% versus 2024) during June.

In May, public sector deposits contributed 34.9% to total deposits, while private sector accounted for 46% and non-resident 19.2%.

Loans to deposits ratio (simple LDR which does not take into account other stable sources of funds) moved down to 132.3% (as of June) with deposits and loans broadly moving in lockstep.

However, as per QCB’s guideline in calculating the LDR (including stable sources of funds), the LDR is well below the 100% limit, QNBFS noted.