An increase in domestic investments and credit led Qatar’s banking assets to see a monthly growth of 1.2 percent in June, to reach 1.99 trillion Qatari riyals ($543.9 billion).
According to QNB Financial Services, this growth contributed to a 1.5 percent rise in banking sector assets in 2024, compared to 1.96 trillion riyals recorded in December last year.
Domestic holdings increased 0.7 percent month on month to reach 1.62 trillion riyals in June, while foreign assets rose 3 percent to 292.3 billion riyals.
June assets saw increased growth compared to May’s 0.8 percent monthly increase and a significant leap from April’s 1.3 percent drop.
Over the past five years, assets have grown at an average rate of 6.8 percent, as detailed in the QNBFS report.
The banking sector’s growth aligns with the nation’s strategy outlined in the Third Financial Sector Strategic Plan, issued by the Qatar Central Bank in 2023.
This initiative aims to develop a financial and capital market that leads the region in innovation, efficiency, and investor protection. It positions Qatar to unlock its full economic potential, aligning with the broader objectives of the country’s 2030 National Vision.
The strategic plan focuses on enhancing financial stability and promoting sustainable economic development through the integration of advanced financial technologies and practices, thereby reinforcing Qatar’s status as a key financial hub in the region.
The sector’s liquid assets to total assets ratio improved to 30.7 percent in June from 30.1 percent in May.
Bank loans increased by 0.4 percent in June, totaling 1.32 trillion riyals, driven primarily by a 0.7 percent rise in the private sector, especially within the services segment.
Loans have grown by 2.9 percent so far in 2024 compared to last year, with an average annual growth of 6.5 percent over the past five years.
Loan provisions to gross credit slightly increased to 4.1 percent in June from 3.9 percent in May.
Deposits in the banking sector declined slightly to 1.03 trillion riyals in June, attributed 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 in June from 127.9 percent in May.
The private sector continued to drive loan growth, with the services sector seeing a 1.3 percent month-on-month increase and contributing 32 percent of private sector loans.
The real estate sector also grew by 1 percent month on month, contributing 20 percent, while general trade edged up by 0.2 percent.
Consumption and other sectors, which account for 20 percent of private sector loans, declined by 0.8 percent month on month.
Public sector loans saw a marginal increase, with government institutions, representing 66 percent of public sector loans, rising by 0.6 percent month on month. However, the government segment, which represents 29 percent of public sector loans, experienced a 1.4 percent decline.
Loans outside Qatar decreased by 1.8 percent month on month but increased by 12.9 percent compared to December 2023.
Public sector deposits fell by 2.4 percent in June, driven by a 3.2 percent decline in the government institutions segment, which accounts for 56 percent of public sector deposits.
Private sector deposits saw a marginal increase of 0.1 percent month on month, with companies and institutions rising by 0.6 percent, while the consumer segment decreased by 0.3 percent.
Non-resident deposits increased significantly by 4.3 percent month on month, contributing to a 10 percent rise compared to December last year.