Doha's listed banks will have to sustain quality growth while managing margin and efficiency metrics, given the regional and global geopolitical environment, according to KPMG in Qatar.
"Qatar’s listed banks began 2026 on a stable footing, with resilient balance sheets and strong capital adequacy and coverage ratios," Omar Mahmood, Partner, Head of Financial Services, KPMG in Qatar, said in an analysis note.
There are nine (including Shariah-compliant) listed banks -- QNB, Qatar Islamic Bank, Commercial Bank, Doha Bank, Ahlibank Qatar, QIIB, AlRayan Bank, Lesha Bank and Dukhan Bank.
The listed banks' total assets were valued at QR2.4tn at the end of first quarter (Q1) of 2026, broadly in line with the levels in December 2025.
The banks' return on assets was marginally down to 1.4% during Q1-2026 compared to 1.5% the previous year period.
While profitability moderated amid higher provisioning, he said cost pressures, and the advent of global minimum tax, asset quality indicators held steady; supporting positive market sentiment reflected by higher share prices.
Profit after tax was down 1.7% year-on-year to QR7.5bn during Q1-2026; while credit provisions increased by 2.7% year-on-year to QR2.9bn during Q1-2026.
The sector contributed 58.78% of the total net profits of the (Qatar Stock Exchange) listed companies in Q1-2026 against 57.8% the corresponding period of 2024.
The banks' return on equity declined to 12.2% during January-March 2026 compared to 13.3% the corresponding period of 2025.
The banks' non-performing loans ratio stood at 3.2% during Q1-2026, broadly in line with the levels in December 31, 2025, it said, adding Stage 3 financing assets coverage ratio was 81.4%, rising by 0.3% against that in December 31, 2025 levels.
The listed banks' efficiency (cost-to-income) ratio increased to 27% during January-March 2026 compared to 26.1% the previous year period.
The banks' capital adequacy ratio increased to 20.2% in the first three months of this year against 19.6% at the end of December 2025, significantly higher than the minimum requirements set by the Qatar Central Bank (QCB).
"Going forward the focus will remain on sustaining quality growth while managing margin and efficiency metrics, as the sector navigates an evolving regional and global geopolitical environment from a position of strength," Mahmood said.
In view of the economic disruptions due to the Iran war, the QCB had announced a package of pre-emptive support measures, including unlimited Qatari riyal repo facilities, a new term repo with maturities of up to three months, a reduction in the reserve requirement on deposits from 4.5% to 3.5%, and the option for banks to offer temporary payment deferrals of up to three months for the affected borrowers.