Doha, Qatar: Qatar’s banking sector maintained stable asset and lending levels in August 2026, with total assets remaining unchanged month-on-month at QR2.194 trillion, while a decline in deposits pushed the sector’s loan-to-deposit ratio higher, according to the latest banking sector data.
The total banking sector assets increased by 2.3% compared with the end of 2025, reflecting continued growth over the year despite limited monthly movement. The sector’s loan book also remained flat in August at QR1.486 trillion, marking a 3.5% increase from December 2025, revealed the banking sector update by QNB Financial Services (QNBFS), yesterday.
Deposits, however, declined by 0.8% month-on-month to QR1.061 trillion, although they remained 1.6% higher than at the end of 2025. The contrasting movements in loans and deposits raised the loan-to-deposit ratio (LDR) to 140% in August, compared with 139% in July and 137% in December 2025.
Despite the increase, the ratio remains well below the 100% regulatory limit when as per Qatar Central Bank’s guidelines, which take stable funding sources into account.
The public sector deposits were the main contributor to the overall decline, falling by 1.3% during August and standing 0.7% below their end-2025 level.
Within this category, government deposits increased by 2.7% month-on-month but remained 8.8% lower than at the end of 2025. Deposits from government institutions declined by 3.2% during August, while semi-government institutions recorded a 1.8% decrease. Compared with the end of 2025, deposits from government institutions were unchanged, while semi-government deposits rose by 15%.
Non-resident deposits also contracted, falling by 2.1% month-on-month. However, they remained 2.1% above their year-end 2025 level. Their share of total deposits was broadly stable at 18.9%, compared with 18.8% at the end of 2025.
The private sector deposits showed little monthly movement, remaining 3.2% above their end-2025 level. Deposits from companies and institutions increased by 1.5% in August, while consumer segment retreated 1%.
On the lending side, the overall loan book remained stable as growth in international credit offset weakness in public sector lending. Public sector loans declined by 0.8% month-on-month and were 4.6% below their December 2025 level.
The government segment (represents approximately 40% of public sector loans) receded 0.8% MoM (+14.9% versus FY2025), while the government institutions segment (represents approximately 50% of total public sector loans) declined 1.8% MoM in August (-19.4% versus FY2025).
On the other hand, the semi-government institutions’ segment (represents approximately10% of total public sector loans) contributed positively, increasing by 4.6% MoM during August 2026 (+25.5% versus FY2025).
The private sector loans remained flat month-on-month, standing 1.4% above their year-end 2025 level. Retail lending and real estate loans also recorded no monthly change, although real estate lending remained 2.4% below its December 2025 level.
International credit was the strongest growth segment, rising by 4.6% in August and surging 63.1% compared with the end of 2025.
Qatar banking sector loan provisions to gross loans remained flat at 3.8% MoM but improved from 4% as of year-end 2025. Loan Loss Provisions inched up 0.7% MoM (-1.1 versus year-end 2025).
Meanwhile, liquid assets accounted for 30% of total banking sector assets in August, maintaining the same level recorded in May, June, July and December 2025, which remains in a strong position.
The figures point to a banking sector with stable assets, resilient liquidity and continued international credit growth, while fluctuations in public sector and non-resident deposits remain key factors influencing monthly funding conditions.
