Doha, Qatar: Qatar’s banking sector assets remained broadly stable in July, while lending continued to grow and deposits declined, according to the latest banking sector data.
Total banking sector assets stood at QR2.194 trillion in July 2026, remaining flat month-on-month and up 2.0% compared with year-end 2025, according to monthly banking sector update by QNB Financial Services (QNBFS).
The sector’s loan book edged up 0.6% month-on-month to QR1.482 trillion, bringing growth since the end of 2025 to 3.2%. The increase was supported by stronger public-sector lending, which offset relatively weak performance from the private sector.
Public-sector loans rose 1.3% month-on-month in July, although they remained 3.9% below their December 2025 level. Government loans, which account for around 40% of public-sector lending, increased 0.7% during the month and were 15.8% higher than at year-end 2025.
Lending to government institutions, representing around 51% of public-sector loans, increased 1.6% month-on-month, although it remained 18.0% below its December 2025 level. Semi-government institutions also contributed to growth, with loans rising 2.1% in July and standing 20.0% above their year-end 2025 level.
Private-sector lending was broadly flat during the month and was 1.0% higher than at year-end 2025. Within the segment, retail loans declined 1.0% month-on-month, while real estate lending increased 0.7%. Other private-sector lending segments were generally stable.
Loans extended outside Qatar continued to show strong momentum, rising 1.7% month-on-month in July and surging 58.6% compared with year-end 2025.
In contrast to the steady expansion in lending, total deposits contracted 3.2% month-on-month to QR1.070 trillion in July. Deposits nevertheless remained 2.5% above their December 2025 level.
The decline was led by public-sector deposits, which fell 8.7% month-on-month, leaving them only 0.6% above their year-end 2025 level. Government deposits declined 2.1% during July and were 11.2% below their December 2025 level.
Deposits held by government institutions, which account for around 55% of public-sector deposits, fell 13.9% month-on-month, while semi-government institutions recorded a more modest 0.9% decline. Despite the monthly contraction, semi-government deposits remained 17.2% above year-end 2025.
Private-sector deposits also declined, falling 1.0% month-on-month, but remained 3.1% higher than at the end of 2025. Deposits from companies and institutions decreased 2.0%, while consumer deposits were unchanged during the month and remained 5.2% above their year-end level.
Non-resident deposits provided some offset, rising 2.6% month-on-month and 4.3% since year-end 2025. Their share of total deposits remained broadly stable at 19.1%, compared with 18.8% at the end of 2025.
The combination of higher lending and lower deposits pushed the reported loan-to-deposit ratio to 139% in July, compared with 133% in June and 137% at year-end 2025. However, under Qatar Central Bank’s methodology, which includes stable sources of funding, the ratio remains well below the 100% regulatory limit.
Meanwhile, liquidity remained strong, with liquid assets accounting for 30% of total assets in July, unchanged from May, June and December 2025.
Asset quality indicators were also stable. Loan provisions to gross loans stood at 3.8%, unchanged month-on-month and improved from 4% at year-end 2025, while loan-loss provisions remained broadly flat during the month and were 1.7% lower than at year-end 2025.
