Doha, August 05 (QNA) - The monthly report issued by QNB Financial Services (QNBFS) for June 2026 showed the stability of the performance of the Qatari banking sector, with banks maintaining strong levels of liquidity, and assets, loans and deposits remaining stable on a monthly basis, supported by growth in public sector deposits and increased lending outside Qatar.
The report indicated that the total assets of the Qatari banking sector remained stable during June without change compared to last May, recording a growth of 2.1 percent compared to the end of 2025, reaching QR 2,197.0 billion.
The report also noted that the loan portfolio remained stable on a monthly basis, rising by 2.6 percent compared to the end of 2025, while deposits remained stable at QR 1,105.1 billion, an increase of 5.8 percent since the beginning of the year.
This kept the loan-to-deposit ratio at 133 percent, unchanged from last May, compared with 137 percent in December 2025.
The report noted that, according to the methodology of the Qatar Central Bank (QCB), which includes stable funding sources, the loan-to-deposit ratio remains below the maximum limit of 100 percent.
Regarding deposits, public sector deposits increased by 3.2 percent on a monthly basis, and by 10.2 percent compared to the end of 2025.
In turn, deposits of government institutions, which account for about 58 percent of public sector deposits, rose by 7.2 percent on a monthly basis, and by 20.0 percent since the beginning of 2026.
Deposits from semi-governmental institutions, which represent about 15 percent of public sector deposits, also increased by 4.3 percent on a monthly basis, and by 18.2 percent compared to the end of 2025.
Non-resident deposits declined by 2.7 percent on a monthly basis, although they remained 1.7 percent higher than at the end of 2025, while their share of total deposits stabilized at 18.0 percent compared to 18.6 percent at the end of 2025.
Private sector deposits recorded a decrease of 0.9 percent on a monthly basis, while maintaining a growth rate of 4.1 percent since the beginning of 2026.
This is due to a 2.0 percent month-on-month decline in corporate and institutional deposits, while they increased by 2.7 percent compared to the end of 2025, while individual deposits remained unchanged month-on-month, with an annual growth of 5.2 percent.
Regarding credit, the report indicated that the stability of the overall loan portfolio was a result of the positive performance of public sector loans, along with strong growth in loans outside Qatar, which offset the decline in private sector loans.
Public sector loans rose by 0.9 percent month-on-month, despite being down 5.1 percent compared to the end of 2025. Government loans, which represent about 40 percent of public sector loans, remained unchanged month-on-month, having risen by 15.0 percent since the beginning of 2026.
Loans to government institutions, which represent about 50 percent of total public sector loans, increased by 0.9 percent on a monthly basis, despite declining by 29.3 percent compared to the end of 2025. Meanwhile, loans to semi-governmental institutions, which represent about 10 percent of total public sector loans, increased by 2.4 percent on a monthly basis, and by 17.5 percent since the beginning of 2026.
Private sector loans decreased by 0.8 percent on a monthly basis, with limited growth of 0.8 percent compared to the end of 2025, affected by a decline in loans to the industrial sector by 27.2 percent on a monthly basis and by 21.2 percent compared to the end of 2025, in addition to a decrease in loans to the real estate sector by 2.5 percent on a monthly basis and by 3.2 percent compared to the end of 2025, while loans directed to the rest of the sectors remained stable with little change.
Loans outside Qatar recorded strong growth of 3.6 percent on a monthly basis, rising by 56.0 percent compared to the end of 2025.
Regarding asset quality, the report showed an improvement in provision levels, as the ratio of loan loss provisions to total loans fell to 3.8 percent during June, compared to 4.1 percent in May and 4.0 percent at the end of 2025. Loan loss provisions also decreased by 6.8 percent on a monthly basis and by 2.2 percent compared to the end of 2025.
The report confirmed the continued strength of liquidity in the banking sector, with the ratio of liquid assets to total assets reaching 30 percent during June 2026, unchanged from the levels of May and December 2025, reflecting the continued strong liquidity levels enjoyed by Qatari banks. (QNA)