Qatar’s banking sector assets witnessed a 1.2 percent month-on-month expansion in June 2024 to QAR1.99 trillion ($546 billion) driven by a rise in domestic investments and credit. The latest data from QNB Financial Services reveals that this expansion contributed to a 1.5 percent increase in banking assets so far this year from QAR1.96 trillion in December 2023.
Qatar’s banking sector assets grew by an average of 6.8 percent over the past five years (2019-2023). Meanwhile, liquid assets to total assets moved higher to 30.7 percent in June 2024, compared to 30.1 percent in May 2024.
The report attributes the expansion in total assets to a 0.7 percent rise in domestic assets to QAR1.623 trillion and a 3 percent increase in foreign assets to QAR292.3 billion.
Bank loans rise
Qatar’s banking sector witnessed a 0.4 percent increase in loans to QAR1.324 trillion in June, mainly due to a 0.7 percent rise in loans to the private sector. So far this year, loans have increased by 2.9 percent compared to a 2.5 percent expansion last year.
From 2019 to 2023, loans grew by an average of 6.5 percent while loan provisions to gross loans rose to 4.1 percent in June, compared to 3.9 percent in May 2024.
Deposits edge down
Deposits edged down slightly across Qatar’s banking sector in June 2024 to QAR1.031 trillion due to a 2.4 percent decline in public sector deposits despite a 4.3 percent expansion in non-resident deposits. So far this year, deposits have risen by 4.6 percent, a recovery from the 1.3 percent decline last year. Deposits grew by an average of 4.1 percent over the past five years.
With a decline in deposits and an expansion in loans during June, Qatar’s loan-to-deposit ratio rose to 128.4 percent.
Private sector continues to drive growth
The private sector continued to drive growth in loans across Qatar’s banking sector. The services sector saw a 1.3 percent monthly expansion in loans with a 32 percent share of total private sector loans.
The real estate sector also saw a 1 percent month-on-month expansion, contributing a 20 percent share. Meanwhile, general trade loans edged up by 0.2 percent in June. Consumption and other sectors saw a 0.8 percent month-on-month decline in loans but still held a 20 percent share of the private sector’s total loans.
On the other hand, public sector loans witnessed a 1.4 percent decline in June despite a 0.6 percent monthly expansion in loans to government institutions.
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