Qatar’s Banking Sector Sees Steady Growth in June

Qatar’s banking assets rose by 1.2 percent in June to reach 1.99 trillion Qatari riyals ($543.9 billion), driven by increased domestic investments and credit, according to QNB Financial Services. This growth marks a 1.5 percent rise in 2024, up from 1.96 trillion riyals in December 2023.

Domestic assets increased by 0.7 percent to 1.62 trillion riyals, while foreign assets rose 3 percent to 292.3 billion riyals. June’s growth surpassed May’s 0.8 percent increase and rebounded from April’s 1.3 percent decline. Over the past five years, banking assets have grown at an average rate of 6.8 percent.

This sector growth aligns with Qatar’s Third Financial Sector Strategic Plan, aiming to enhance financial stability and promote sustainable economic development. This initiative, part of Qatar’s 2030 National Vision, seeks to position the country as a regional leader in financial innovation, efficiency, and investor protection.

Liquid assets to total assets improved to 30.7 percent in June from 30.1 percent in May. Bank loans increased by 0.4 percent to 1.32 trillion riyals, with private sector loans, especially in services, rising by 0.7 percent. Loans have grown by 2.9 percent in 2024, with a five-year average annual growth of 6.5 percent. Loan provisions to gross credit increased slightly to 4.1 percent from 3.9 percent in May.

Deposits slightly declined to 1.03 trillion riyals, due to a 2.4 percent drop in public sector deposits, despite a 4.3 percent rise in non-resident deposits. Consequently, the loans-to-deposits ratio increased to 128.4 percent from 127.9 percent in May.

The private sector continued to drive loan growth, with the services sector up 1.3 percent month-on-month, contributing 32 percent of private sector loans. Real estate loans grew by 1 percent, while general trade loans increased by 0.2 percent. Public sector loans saw marginal growth, with government institutions up by 0.6 percent, though government loans fell by 1.4 percent.

Loans outside Qatar decreased by 1.8 percent month-on-month but rose by 12.9 percent since December 2023. Public sector deposits dropped by 2.4 percent, driven by a 3.2 percent decline in government institution deposits. Private sector deposits saw a slight 0.1 percent increase, with company deposits up 0.6 percent and consumer deposits down 0.3 percent. Non-resident deposits increased significantly by 4.3 percent, contributing to a 10 percent rise since December last year.