Qatar’s banking sector demonstrated continued resilience and financial stability in June 2026, maintaining steady asset levels and solid liquidity amid evolving global economic conditions, according to a recent report by QNB Financial Services (QNBFS).

Total banking sector assets held broadly steady at QR2.197 trillion in June, unchanged from May and representing a 2.1 percent increase compared with the end of 2025. The sector’s loan portfolio remained stable at QR1.472 trillion, marking a 2.6 percent year-to-date gain. Customer deposits stood firm at QR1.105 trillion, reflecting a 5.8 percent rise since the end of last year, signaling sustained depositor confidence and a healthy funding base for financial institutions.

The report highlighted the sector’s loan-to-deposit ratio (LDR) held steady at 133 percent in June, improving from 137 percent at the close of 2025. When using the Qatar Central Bank’s adjusted methodology, which accounts for stable funding sources, the ratio remains comfortably below the regulatory ceiling of 100 percent, showcasing prudent liquidity management across the banking system.

Public sector deposits were a key contributor to monthly growth, rising 3.2 percent and reaching levels 10.2 percent above year-end 2025. Within this segment, deposits from government institutions, which make up about 58 percent of public sector deposits, expanded by 7.2 percent month-on-month and were 20 percent higher compared with the end of 2025. Semi-government institution deposits also increased by 4.3 percent during June, up 18.2 percent since the previous year. Although core government deposits slightly declined over the month, the overall expansion in government-related deposits supported the sector’s strong liquidity position.

Private sector deposits experienced a marginal decline of 0.9 percent in June but remained up 4.1 percent year-to-date. Consumer deposits stayed stable, recording a 5.2 percent increase from the previous year, indicative of ongoing household confidence and robust savings. Non-resident deposits fell by 2.7 percent month-on-month but continued to exceed year-end 2025 levels by 1.7 percent, reflecting continued international engagement with Qatar’s banking industry.

On the lending front, total loans held steady, driven by growth in public sector financing and strong expansion in overseas lending. Public sector loans increased by 0.9 percent during June, with semi-government institutions’ lending climbing 2.4 percent and government institution loans also rising. Lending to government entities remained stable for the month but was 15 percent higher compared to year-end 2025. International lending was a significant growth area, with loans outside Qatar rising 3.6 percent in June and surging 56 percent since the end of last year, underscoring the widening regional and global presence of Qatari banks. Meanwhile, private sector lending declined slightly by 0.8 percent, mainly due to reduced financing in the industrial and real estate sectors, while lending in other economic areas remained largely unchanged.

The sector also reported improvements in asset quality, with the ratio of loan loss provisions to gross loans improving to 3.8 percent in June from 4.1 percent in May. Total loan loss provisions declined by 6.8 percent month-on-month, indicating stable credit portfolios and effective risk management.

Liquidity metrics remained robust, with liquid assets constituting 30 percent of total assets in June, unchanged from previous months. This highlights the sector’s strong liquidity buffers and its capacity to support future lending growth.

Overall, the latest data from QNBFS underscores the resilience of Qatar’s banking sector, reinforced by stable asset growth, healthy deposit inflows, strong liquidity, and expanding international activities. These factors position the sector to support Qatar’s economic diversification objectives and fund forthcoming investment projects while maintaining financial stability.