Qatari banks maintained balance sheet stability in August, supported by strong international credit expansion and solid year-to-date asset growth, according to QNB Financial Services monthly banking sector update.
Commercial banks' assets in Qatar held firm at QR2.19tn in August 2026, marking a 2.3% increase compared to year-end 2025.
Total loans across the banking system reached QR1.48tn, reflecting a 3.5% growth since the end of 2025.
International credit growth served as a primary driver for bank balance sheets, rising 4.6% during the month. Compared to year-end 2025 figures, international credit grew by 63.1%.
Within the domestic market, loan performance in the semi-government segment increased by 4.6% m-o-m, up 25.5% compared to December 2025. However, total public sector loans declined by 0.8% sequentially during August, down 4.6% against year-end 2025 levels.
The government borrowing segment fell 0.8% m-o-m (+14.9% vs FY2025), while government institutions declined 1.8% during the month (-19.4% vs FY2025).
Private sector corporate deposits rose 1.5% sequentially, showing a 3.3% increase over year-end 2025 levels. Total private sector loans held steady during the month, posting a 1.4% gain compared to year-end 2025. Retail credit remained flat sequentially (+2.6% vs. December 2025), while real estate lending also recorded flat performance during the month (-2.4% vs December 2025), according to the report.
Asset quality metrics across the sector remained sound, with loan provisions standing at 3.8% of gross loans compared to 4.0% at year-end 2025.
Liquid assets represented 30% of total bank assets during August, maintaining the position observed in preceding months (May, June, and July) and at year-end 2025.
Total deposits in the banking sector reached QR1.06tn, up 1.6% against year-end 2025 figures despite a 0.8% m-o-m contraction.
Public sector deposits dropped by 1.3% m-o-m (-0.7% vs FY2025), pulling down overall sector deposit figures.
Government deposits rose 2.7% sequentially (-8.8% vs FY2025), whereas government institutions receded 3.2% (-0.0% vs FY2025) and semi-government deposits contracted 1.8% (+15.0% vs FY2025).
Non-resident deposits declined 2.1% during the month (+2.1% vs FY2025), representing 18.9% of total deposits. Private sector company and institutional deposits expanded 1.5% m-o-m (+3.3% vs FY2025), while consumer deposits receded 1.0% (+3.1% vs FY2025), according to QNBFS report .
The nominal loan-to-deposit ratio moved up to 140% in August compared to 139% in July and 137% at year-end 2025. Under Qatar Central Bank regulatory guidelines that include stable sources of funds, the sector loan-to-deposit ratio remains well below the maximum 100% regulatory threshold. Loan loss provisions rose 0.7% sequentially during the month (-1.1% vs year-end 2025).
